CE.12d,e,f Review

Resources, goods and services, and money flow continuously among...

• households, businesses, and markets in the U.S. economy.

• businesses and markets in the U.S. economy

• entrepreneurs, suppliers, and the government in the U.S. economy.

In the economic/circular flow diagram, who owns the resources used in production, sells the resources, and uses income to purchase products?

• households

• businesses

• governments

In the economic/circular flow diagram, who uses tax revenue from individuals and businesses to provide public goods and services?

• households

• businesses

• governments

Private financial institutions help facilitate an exchange of money between ____ and ____.

• goods and services

• businesses and individuals

• savers and borrowers

• corporations and partnerships

Select all choices that are TRUE for private financial institutions. (Select all answers that apply.)

• include banks and credit unions

• receive deposits and make loans

• mint money

• encourage saving and investing by paying interest on deposits

• help provide financial capital (money) to people/businesses to start or grow a business

Why do Virginia and the United States pursue international trade?

• to increase resources

• to increase wealth

• to discourage competition

• to increase unemployment

Worldwide markets in which the buying and selling of goods and services by all individuals, nations, and businesses takes place is call the _________.

• national economy

• national marketplace

• global marketplace

• global economy

All of the following are reasons that states and nations trade EXCEPT...

• to obtain goods & services they cannot produce OR cannot produce efficiently themselves

• to eliminate jobs

• to buy goods & services at a lower cost OR opportunity cost

• to sell goods & services to other countries

Virginia and the United States specialize in the production of certain goods and services, which...

• promotes efficiency and growth.

• encourages tax increases.

• promotes competition.

• creates an unstable market.

Select all answers that are TRUE regarding the impact of technological innovations. (Select all answers that apply.)

• Innovations in technology contribute to the global flow of information.

• Innovations in technology contribute to the global flow of capital, goods, and services.

• The use of innovative technology lowers the cost of production.

• The use of innovative technology is harmful to the growth and success businesses.