Governments and Economy Test

A system in which people produce, sell, and buy things is called a what?

• Government

• Economy

• Oligarchy

• Capital

The primary sector of economic activity includes which of the following?

• Mining

• Farming

• Fishing

• Forestry

The secondary sector of economic activity includes using raw materials to manufacture (make) products.

• True

• False

Healthcare, banking, and other services are examples of the tertiary (third) economic activity sector.

• True

• False

______ includes all the natural resources used to make goods.

• Capital

• Labor

• Entrepreneurship

• Land

refers to the size and education level of a workforce.

• Entrepreneurship

• Labor
• Land

• Capital

refers to a countries wealth and infrastructure.

• Capital

• Entrepreneurship
• Land

• Labor

refers to the creativity and risk needed to create new goods and services.

• Land

• Labor

• Entrepreneurship
• Capital

In this economy, people trade goods and services WITHOUT money.

• Free enterprise

• Traditional

In this economy, privately owned businesses create goods that people buy in markets.

• Mixed

• Command

• Free enterprise

• Traditional