CE SOL 12 test review

Technological innovations impact the global economy by---

• decreasing the flow of capital

• raising the cost of production

• contributing to the flow of goods and services

• producing goods and services at a higher opportunity cost

On an economic flow chart, what is the main thing that would flow FROM the government TO individuals and businesses?

• stocks

• public goods and services

• profits

• savings

What is the intermediary between savers and borrowers?

• the government

• partnerships

• technology

• financial institutions

Both the U.S. and Virginia pursue worldwide trade to---

• enforce laws and guidelines enacted by Congress

• maintain peaceful relations with foreign countries

• increase wealth and create jobs

• promote equal opportunities for all people

What are financial institutions?

• governments

• banks, savings and loans, credit unions

• schools

• proprietorships, polling places, individuals

What is a form of business with one owner?

• financial institution

• corporation

• proprietorship

• partnership

Consumer sovereignty is an important aspect of the U.S. economy because consumers---

• prohibit businesses from using false advertising

• are free from any liability for poor purchase decisions

• determine through purchases, what goods and services will be produced

• determine through purchases, how much money will be generated by the Federal Reserve

What are some of the reasons that states and nations trade?

• to buy goods cheaply

• to sell their goods and services

• to create jobs

• all of the above

All of the following are true about entrepreneurs EXCEPT----

• they take a risk to produce and sell goods and services in search of profit

• they often foster technological progress and economic growth

• they increase competition by bringing new goods and services to market

• they can only set up a proprietorship or corporation

In this business, liability is limited to the amount of investment and the business is authorized by law to act as a legal person.

• financial institution

• proprietorship

• corporation

• partnership