Four major sectors of U.S. Economy
Why do households sell their labor to businesses?
They receive income in exchange for labor.
Which of the following BEST describes the business sector of the U.S. economy?
The business sector produces goods and provides services.
Which of the four major sectors in the US economy provides checking accounts, savings accounts, and loans?
Banks
What is the main way that most households and private businesses support the government economically?
They pay taxes to the government
Tom had a lemonade stand and changed his price from $2 per cup to $1 per cup. What is MOST LIKELY to happen based on the change?
More people will buy lemonade from Tom
Which of the following is one role of the household sector of an economy?
to consume services
Which of the four sectors of the U.S. economy is formed by profit-seeking entrepreneurs who use resources to produce goods and services to sell?
Private businesses
Use the information to answer the question.
“I want to open my own restaurant. I will need to take out a loan from my bank.”
-Jayla Smith, Entrepreneur
Which of the following BEST explains what should Jayla expect by taking a loan from her bank?
to repay the bank based on the amount of the loan plus interest
Which sector of the US economy produces the MOST public goods?
Government
Why is competition good for consumers?
encourages businesses to offer consumers low prices and quality products.
Who are the buyers of labor services?
employers
In the labor market, what is the price of labor?
The wage a business is willing to pay to its employees.
Use the information to answer the question.
?
__________________________
Your money will be safe.
Your money can earn interest.
You are less likely to spend your money.
Which of the following is the BEST title for the list?
Benefits of savings accounts
Use the information to answer the question.
“I turned 16 this past November. I am getting a job at the shoe store at the mall.”
-Pedro Garcia, High School Student
Which of the following BEST describes what Pedro can expect at his new job?
Pedro will receive income in exchange for his labor, which he can use to purchase goods he wants.
Coca Cola and Pepsi produce a similar product. How will competition between the two companies MOST LIKELY affect consumers?
The companies will each try to produce a better version of the product and sell it at a lower cost to consumers.
Use the information to answer the question.
“I am so nervous. I have quit my job to become an entrepreneur by opening my own nail salon. I don’t know exactly what will happen before the salon opens.”
-Mary Jo Shively, Nail Technician
Which of the following BEST describes what Mary Jo should expect to happen before opening her salon?
She should expect to have to work long hours making plans for the business.
Use the information to answer the question.
?
_______________________________
Risk Taker
Hard Worker
Attitude of Success
Which of the following would be the BEST title for this list?
Entrepreneur
How do banks in the United States make MOST of their money?
loaning money to individuals and businesses
What is the meaning of the phrase “make ends meet”?
To have enough money to pay expenses
What is a financial document that outlines a person's income and expenses?
a personal budget
Which part of a personal budget records the amount of money a person spends?
expenses
What should a person make sure to balance when creating a personal budget?
spending and saving
Jamaal has a personal budget to keep up with his money. He realizes that he is out of pencils for school. He goes to the store to buy pencils but wants to make a wise spending decision that is within his budget. Which of the following decisions is Jamaal MOST LIKELY to make?
He will buy a pack of pencils that costs $2.00 rather than one that costs $3.00.
Which element of a personal budget is the money that a person earns or receives?
income
Bernice’s husband spends too much money on video games, and sometimes the two of them have trouble paying their bills each month. Currently, the couple share a car, which makes it difficult for them to both get to work on time. What should Tasha and her husband do first?
They should create a personal budget to identify how they can reduce spending.