Chapter 8 & 9 Review

Economic utility is one of the four types of utility that satisfy wants.

• True

• False

Entrepreneurship is a factor of production.

• True

• False

Countries with a command economy are often dictatorships.

• True

• False

The average profit earned by a business today is about 5 percent of total receipts.

• True

• False

Inflation increases the purchasing power of money.

• True

• False

Foreign investment occurs when firms of one country build new plants in another country.

• True

• False

Goods and services that are sold to other countries are called exports.

• True

• False

A country earns revenue by imposing tariffs on foreign goods.

• True

• False

Culture affects how people communicate in a country.

• True

• False

Trading blocs have discouraged global trade and investment.

• True

• False