Section 1 Study Questions (9.0 points)
Answer each question fully. Complete sentences are not necessary.
Lesson 1 (3.0 points)
1. Name at least two things financial planning could help you do. (0.5 points) It help you track all inflows and outflows. By observing the present, we can be able to predict the future with the help of financial planning. 2. What is trade? (0.5 points) The action of buying and selling goods and services. 3. What is a service? (0.5 points) The action of helping or doing work for someone. 4. Name one of the three functions of money. (0.5 points) Value. 5. The real estate market is categorized in which way? (0.5 points) Residential, commercial, industrial. 6. What is a country’s GDP? (0.5 points) Gross domestic product.
Lesson 2 (3.0 points)
1. What is a market economy? (0.5 points) A market economy is an economy based on the power of division of labor in which the prices of goods and services are determined in a free price system set by supply and demand. 2. Name at least two features of capitalism. (1.0 points) Laissez-faire - as little government interference in the economy as possible. Private ownership of companies and businesses - this would provide for competition among businessmen and bring prices down for consumers. 3. A business that sells watches that are more inexpensive than the watches a competitor sells is using which type of competition? (0.5 points) A Luxury Business Model is being used when a company sells merchandise more expensive than competitors. 4. What is a monopoly? (0.5 points) The exclusive possession or control of the supply or trade in a commodity or service. 5. What is a motive? (0.5 points) A reason for doing something, especially one that is hidden or not obvious.
Lesson 3 (3.0 points)
1. What is land as a factor of production? (0.5 points) There are three basic factors of production: land, labor, capital. Some modern economists also include entrepreneurship as a factor of...
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