Download Review Questions for SOL CE 11 - Augusta County Public Schools

Review Questions for SOL CE 12 - Structure and Operation of the U.S. Economy
1. What is the term for the type of business shown in the picture, if Jane is the
only owner? (CORPORATION, PROPRIETORSHIP, PARTNERSHIP)
2. What is the term for the type of business that has two or more owners, each
of whom shares fully in the risks and profits of the company?
(CORPORATION, PROPRIETORSHIP, PARTNERSHIP)
3. What form of business usually has many thousands of owners? (CORPORATION, PROPRIETORSHIP,
PARTNERSHIP)
4. In what form of business is the owners' financial liability limited to just their own investment?
(CORPORATION, PROPRIETORSHIP, PARTNERSHIP)
5. If a partnership fails, and goes out of business while owing money to its suppliers, do the owners themselves
have to pay the money the company owes? (YES, NO)
6. If a corporation fails, and goes out of business while owing money to its suppliers, do the owners themselves
have to pay the money the company owes? (YES, NO)
7. Who gets the profit made by a corporation? The stockholders/shareholders
8. What form of business has investors that can be called shareholders or stockholders? (CORPORATION,
PROPRIETORSHIP, PARTNERSHIP)
9. What is the term for people who take the risks of creating new businesses in hope of earning profits?
entrepreneur
Use the diagram to help you answer the next four questions.
10. What concept in economics is the diagram
illustrating? (SUPPLY AND DEMAND;
EQUILIBRIUM PRICE; CIRCULAR FLOW;
OPPORTUNITY COST)
11. In the diagram, what is the most common resource
individuals sell to businesses? (PROFITS; LABOR)
12. In the diagram, what do businesses receive for the
goods and services they produce? (PROFITS;
FINANCIAL CAPITAL; PAYMENT)
13. In the diagram, what is the term for money that
individuals save and invest in business? (PROFITS;
FINANCIAL CAPITAL; PAYMENT)
14. Give two examples of public goods and services.
1. public schools, public libraries, roads
2. post office, 911, military, police
15. How do governments get the money to provide public goods and services?
A. taxes from individuals only
B. taxes from businesses only
C. taxes from both individuals and businesses
16. Which of the following is NOT a type of financial institution commonly found in this country?
A. banks
B. business institutions
C. credit unions
D. S&L’s
17. How is the type of financial institution shown in the advertisement to the
right different from a regular bank?
A. Credit unions are just for people who don’t have much money.
B. Credit unions only offer savings accounts and home loans.
C. Credit unions are only for people employed by their sponsor.
D. Credit unions do not offer checking accounts.
18. What are "S&Ls"?
A. Securities and Loans Associations
B. Savings and Loans Associations
C. Sales and Levies
19. What do financial institutions do to encourage people to save and invest?
A. charge interest on loans
B. pay interest on deposits
20. What is the common term for the worldwide markets in which goods and services are increasingly bought
and sold?
______________global economy____________________________________
21. Nations around the world trade for all of the reasons below EXCEPT:
A. to buy goods and services at a lower cost.
B. to sell goods and services to other countries.
C. to obtain goods and services they cannot produce themselves efficiently.
D. to eliminate jobs.
22. What impact has innovation in technology had on the global flow of information, capital, and products?
(IMPROVED IT; HARMED IT; LEFT IT THE SAME)
23. What impact has innovation in technology had on the cost of production of goods and services?
(RAISED COSTS; LOWERED COSTS; LEFT COSTS THE SAME)
24. What impact does the growth of the global economy have on businesses in Virginia?
A. The global economy has no impact on Virginia businesses.
B. Businesses in Virginia must become more efficient.
C. Businesses in Virginia must become less efficient.
D. Businesses in Virginia cannot compete with businesses in nations with cheap labor.
Review Questions for SOL CE 13 - The Government's Role in the U.S. Economy
Questions about the government's role in promoting competition and regulating business:
1. The main purpose of the two laws shown in the graphic to the left is to
A. make borrowing easier.
B. limit bank interest rates.
C. prohibit illegal monopolies.
D. make it easier to sue businesses.
2. What can the federal agency shown in the graphic to the right do to help
new businesses get started.
A. Offer free advice.
B. Offer low-interest loans.
C. both A and B
D. none of the above
3. An important job of the FTC (Federal Trade Commission) is to
A. arrange business sales.
B. control pollution.
C. regulate banks.
D. investigate unfair business practices.
4. The FCC (Federal Communications Commission) regulates
A. Television
B. Radio
C. Music lyrics
D. all of the above
5. What is the name of the federal agency that sets rules to reduce pollution created by businesses?
A. FCC (Federal Communications Commission)
B. EPA (Environmental Protection Agency)
C. FTC (Federal Trade Commission)
D. FDA (Food & Drug Administration)
Questions about public goods and services:
6. The poster to the left shows examples of things provided by ____________ that are
called public goods and services. (THE GOVERNMENT, BUSINESSES,
INDIVIDUALS)
7. One characteristic of public goods and services is that they ___________ be used by many people at the
same time. (CAN, CANNOT)
8. Most public goods and services ___________ be easily provided by individuals for themselves. (CAN,
CANNOT)
Questions about government taxes, spending, and borrowing:
9. What are the three sources of money that the government uses to pay for public goods and services?
(Circle 3 answers!)
A. taxes
B. production
C. borrowing
D. fees
10. The tax collected on the sale of items in a store is called a __________ tax.
(SALES, PROPERTY, INCOME)
11. The tax collected on homes and other buildings is called the __________ tax.
(SALES, REAL ESTATE, PERSONAL PROPERTY)
12. The tax collected on one's earnings from a job is called the __________ tax.
(SALES, PROPERTY, INCOME)
13. A tax increase tends to _____________ the overall economy, by reducing the amount of money available
for spending by individuals and business. (BOOST, SLOW)
14. An increase in government spending often ____________ the overall economy temporarily, by increasing
employment and production. (BOOSTS, SLOWS)
15. An increase in government spending will most likely result in a(n) ___________ in taxes sooner or later.
(INCREASE, DECREASE)
Questions about the Federal Reserve System:
16. The Federal Reserve (the FED) is the ____________ bank of the United States, and is sometimes called
"the banker's bank." (PRIVATE, PUBLIC, CENTRAL)
17. The Federal Reserve System is mainly responsible for maintaining value of the national __________ .
(BANK, CURRENCY, BUDGET)
18. The Federal Reserve regulates banks to ensure the soundness of the banking system and the safety of
_____________ . (SUPPLY & DEMAND, DEPOSITS, NATIONAL DEFENSE)
19. The Federal Reserve manages the amount of money in the economy to try to keep inflation ___________.
(LOW & STABLE; LOW & UNPREDICTABLE; HIGH & STABLE)
Questions about the ways the government protects property rights and consumer rights:
26. The right to private property is protected by the government through laws and courts that enforce
____________ . (SPEED LIMITS, TAXES, CONTRACTS)
27. Government agencies such as the Food and Drug Administration and the Consumer Product Safety
Commission are designed mainly to protect the rights of ____________. (BUSINESSES, GOVERNMENT,
CONSUMERS)
28. If a consumer is injured by a product sold by a business, does the law allow the consumer to sue the
business in court? (YES, NO)