Lesson 3 - Participants in an economy Flashcards
What are the main participants in an economy?
Households, businesses, government, and foreign entities.
True or False: Households are considered consumers in an economy.
True.
Fill in the blank: __________ are the entities that produce goods and services in an economy.
Businesses.
What role does the government play in an economy?
The government regulates economic activity, provides public goods, and enforces laws.
Which participant in the economy is primarily responsible for consumption?
Households.
Multiple Choice: Which of the following is NOT a participant in an economy? A) Households B) Businesses C) Environment D) Government
C) Environment.
What is the main objective of businesses in an economy?
To maximize profit.
True or False: Foreign entities do not influence a domestic economy.
False.
Fill in the blank: The interaction between __________ and businesses determines the flow of goods and services.
Households.
What is the term for the economic contributions of foreign entities?
Foreign investment.
Multiple Choice: What is one way the government can influence the economy? A) Setting interest rates B) Increasing consumer spending C) Reducing taxes D) All of the above
D) All of the above.
Short Answer: Name one responsibility of households in an economy.
To provide labor or consume goods and services.
True or False: Businesses can only operate within their own country.
False.
What do we call the relationship between businesses and consumers?
Market.
Fill in the blank: The __________ sector includes all government activities in an economy.
Public.
