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Community & Economy Assessment

Last updated about 4 years ago

15 questions

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Directions: Select the answer  that best apply to the question. 

Question 1

1.

Which best describes the circular flow of an economy?

the flow between businesses and resources

the exchange of money, goods, and services in an economy

happens only in a resource market

happens only in a goods or services market

Question 2

2.

Which is NOT true of public goods and services?

shared by everyone- sometimes at the same time

only given to the needy

no one is prevented from using them

are paid for by taxes

Question 3

3.

Which is not a basic economic question faced by an economy?

What to produce?

How much profit will be made?

How to produce?

For whom to produce?

Question 4

4.

Who pays for public goods and services?

philanthropists

taxpayers

only people who use them

government

Question 5

5.

A free enterprise economy is a system in which economic decisions are made in markets by consumers and businesses.

True

False

Question 6

6.

Due to scarcity, people cannot have all the things they want.

True

False

Question 7

7.

Businesses produce goods and services for citizens, who in turn, supply labor and other resources to the businesses.

True

False

Question 8

8.

Resources are the goods people buy from the business.

True

False

Directions: Fill in the blanks. 

Question 9

9.

What are the 3 types of resources? _______ _______ _______ 

Question 10

10.

The merchandise, skills, and knowledge offered for sale by businesses or citizens are called _______ .

Question 11

11.

Payments that citizens are required to make to government are called _______ .

Question 12

12.

In a free enterprise economy, _______ make the decisions about what they will sell. 

Question 13

13.

The exchange of goods and services is called _______ .

Directions: Answer the questions below in complete sentences. 

Question 14

14.

Give one example of a citizen's responsibility to his or her community.

Question 15

15.

Why do people and businesses pay taxes?