CE 12 Review #1: Question Preview (ID: 14926)

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Financial institutions channel funds from savers to borrowers in all of the following ways EXCEPT?
a) Receive deposits
b) Make loans
c) Take money from the rich and give it to the poor
d) Encourage saving and investing by paying interest on deposits

Entrepreneurs may establish a business in all of the following organizational structures EXCEPT?
a) Merger
b) Proprietorship
c) Partnership
d) Corporation

Virginia and the United States specialize in the production of goods and services which promotes?
a) Interference with trade with other countries
b) Efficiency and growth
c) Higher costs of production
d) The slowdown of the global economy

Technological innovations such as the internet contribute to?
a) Interference with trade with other countries
b) Higher costs of production
c) The global flow of information, capital, goods, and services
d) The slowdown of the global economy

All are reasons that states and nations trade except?
a) create jobs by selling goods and services to other countries.
b) buy goods at a lower cost or a lower opportunity cost.
c) obtain goods they cannot produce efficiently themselves.
d) buy goods at a higher cost or a higher opportunity cost.

A person who takes risks to produce goods and services in search of profits is?
a) An entrepreneur
b) A donor
c) A loan officer
d) An anti-trust legislator

Worldwide markets in which the buying and selling of goods and services by all nations takes place is the?
a) American economy
b) Global Economy
c) Stock Market
d) European Exchange

Banks, savings and loans, and credit unions are all?
a) Private financial institutions
b) Public goods and services
c) Government agencies
d) Major economic systems

The government uses tax revenues from individuals and businesses to?
a) Provide public goods and services
b) Buy products
c) Make profits
d) Donate to charities

What term describes a company that is authorized to operate as a legal person?
a) A corporation
b) A proprietorship
c) A partnership
d) An entrepreneur

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