Four Sectors of Economy
Bank
A thing that is borrowed, but has to be paid back with interest.
loan
What are households made up of?
People
True or false. The government mostly provides public goods and services
True
What is an entrepreneur?
A person that starts their own business.
A company who buys or sells goods and services
Business
True or false. The government will provide short term income for a worker that has been laid off from their job
True
What do households do with the money that they make?
Purchase goods and services
What do U.S. citizens pay in order for us to have free education?
taxes
Why do businesses produce goods and services?
To earn a profit
True or False. A household works to earn taxes to pay for goods and services.
False. A household works to earn wages to pay for goods and services.
People can put their money in a ______ account or _________ to keep it safe.
savings account, checking account
What are two examples of productive resources people can be?
Human resources and entrepreneurs
What service does the government provide to make sure that all U.S. citizens are protected?
military
Name three good or services provided by businesses
Clothes, food, cars, internet, jewelry, etc.
Provides good and services for profit.
Businesses
Brianna borrowed 1000 dollars from the bank. When she goes to pay the money back, it turns out that she has to pay 1050 dollars instead. The extra money that Brianna has to pay is known as ________.
Interest
Households earn ______ by exchanging their talents, time, and labor for money.
income
True or False. Social Security is a program that assist only the elderly.
False. Social Security helps people that are unemployed, disabled or elderly.
What are wages?
Money paid to employees for their work.
Provides goods and services for the common good.
Government
Taxes are collected by the ______, ________, and _________ governments.
local, state and federal
All the people in a household are known as _______ that provide labor to produce goods and services
human resources
Two forms of income security that the government provides
Social Security, Medicare, unemployment
Name two characteristics of an entrepreneur
risk taker, hard working, innovative, knowledge seeker, etc