Review Questions - Fasttrack Civics
   Unit CE 12 - Structure and Operation of the U.S. Economy
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Review Questions for CE 12 in Fasttrack Civics - Structure and Operation of the U.S. Economy

Questions about types of business ownership:

Jane's Health Food Shop

1.  What is the term for the type of business shown in the picture above, if Jane is the only owner?   (Answer choices:  corporation, proprietorship, partnership.)

2.  What is the term for the type of business that has two or more owners, each of whom shares fully in the risks and profits of the company?  (Answer choices:  corporation, proprietorship, partnership.)

3.  What form of business usually has many thousands of owners?  (Answer choices:  corporation, proprietorship, partnership.)

4.  In what form of business is the owners' financial liability limited to just their own investment?

5.  If a partnership fails, and goes out of business while owing money to its suppliers, do the owners themselves have to pay the money the company owes?

6.  If a corporation fails, and goes out of business while owing money to its suppliers, do the owners themselves have to pay the money the company owes?

7.  Who gets the profit made by a corporation?

8.  What form of business has investors that can be called shareholders or stockholders?

9.  What is the term for people who take the risks of creating new businesses in hope of earning a profit?

Questions about economic flow:

Use the diagram below to help you answer questions 10 to 13.

Households and businesses

10.  What concept in economics is the diagram above illustrating?   (Answer choices:  supply and demand; equilibrium price; circular flow; opportunity cost.)

11.  What is the most common resource individuals (households) sell to businesses?  

12.  What do businesses receive for the goods and services they produce?  

13.  What is the term for money that individuals (households) save and invest in business?
14.  Give two examples of public goods and services.

15.  Do governments get the money to provide public goods and services with taxes on individuals only, taxes on businesses only, or from taxes on both individuals and businesses?

Questions about financial institutions:

16.  List three kinds of financial institutions commonly found in this country.

17.  When you deposit money in a financial institution, most of it is usually __________ out to borrowers.  (Answer choices:  given, loaned, handed.)

Shipyard Credit Union

18.  How is the type of financial institution shown in the advertisement above different from a regular bank?

19.  What are "S&Ls"?

20.  What do financial institutions do to encourage people to save and invest?

Questions about global trade and technology:

21.  What is the common term for the worldwide markets in which goods and services are increasingly bought and sold?  (Answer choices:  global economy, flea market, trading floor.)

22.  Nations around the world trade for all of the reasons below EXCEPT:

   A. to buy goods and services at a lower cost.
   B. to sell goods and services to other countries.
   C. to obtain goods and services they cannot produce themselves efficiently.
   D. to eliminate jobs in their own country.

23.  What impact has innovation in technology had on the global flow of information, capital, and products?   (Answer choices:  improved it, harmed it.)

24.  What impact has innovation in technology had on the cost of production of goods and services?  (Answer choices:  raised the cost, lowered the costs.)

25.  Virginia leaders and businesses try to increase trade with other nations because in the long run, that will _________ wealth.  (Answer choices:  increase, decrease.)

Copyright 2007, 2015 by David Burns
All rights reserved

Copyright Notice

Copyright 2006, 2015 by David A. Burns.  All rights reserved.  No part of this work may be reproduced or transmitted in any form or by any means without the prior written permission of the copyright holder.   Contact:  Fasttrack Civics Project, 6215 Lavell Court, Springfield, VA 22152.

This work is a guide to the Virginia Civics SOL exam, and follows the organization and content of the Virginia Standards of Learning framework for that subject.  Some pages necessarily include phrases or sentences found in the Virginia SOL, which is available online from the Virginia Department of Education.  The author’s copyright extends to this work's original text and graphic content, unique design and layout, and other related material.
Illustrations appearing in this publication are taken from sources in the public domain and from private collections used by permission.  Sources include: the Dover Pictorial Archive, the Library of Congress, The Hart Publishing Co., Corel Corporation and its licensors, Nova Development Corporation and its licensors, and others.  Maps were created or adapted by the author using reference maps from the United States Geological Survey and Cartesia Software.