ECONOMICS

Which government agency provides consumer protection in case of a bank failure and plays a direct role in the US economy?

Federal Deposit Insurance Corporation

In the United States, businesses are driven by profit. How does the profit motive benefit the American consumer?

Firms that want to stay in business provide products that are pleasing to consumers.

Which is true regarding the FDIC?

The FDIC takes over for failed banks.

Which accurately describes why the FDIC was created?

The FDIC was created in 1933 after many bank failures caused the Great Depression.

The US government plays an impactful role in the economy, both directly and indirectly. Which is an example of the federal government indirectly affecting the market economy?

The US government provides social security benefits for senior citizens.

What were the functions of the Tennessee Valley Authority Act? (Select all that apply.)

develop agriculture and forest land in the valley improve navigation along the Tennessee River

Which economic system is based on private ownership of goods and private decisions to invest in trade or business industries, with the intent of making a profit?

free enterprise economy

Which type of government regulation is designed to increase business competition?

regulations that prohibit a single business from controlling the market

What effect does government regulation have on businesses?

it takes away some economic freedom from businesses to ensure economic freedom for consumers.

Which law did President George W. Bush sign to buy toxic assets from financial institutions? TARP

TARP

What were the goals of the Tennessee Valley Authority Act? (Select all that apply.)

1. improve the economy of the Southeast 2. provide power at a lower cost

Which are regulations the government may impose on businesses?

1.requirements to ensure that they participate in competition 2. requirements to provide accurate information to consumers 3. requirements to protect consumers as well as workers

Which is an example of specialization?

A person studies nursing and works in a hospital.

Why is ownership of private property important in the American free enterprise economy?

It allows individuals to use their resources for personal gain.

What is the primary function of the Federal Deposit Insurance Corporation?

It provides consumers protection in case of a bank failure.

Which explains the US government's role in promoting competition?

The government plays an active role in promoting competition at all levels.

Which are considered producers?

car salesman car mechanic car builder

For a free enterprise system to exist, individuals need to be able to make _[blank]_. Which best completes the sentence?

choices

Which are characteristics that make up capitalism? (Select all that apply.)

competition freedom

Which are examples of consumer exchanges?

paying a teen to mow the lawn buying lunch at a restaurant

The housing bubble was caused in part by people buying homes to fix and sell for a higher price. What is this known as?

speculating

Why did the US government establish the FDIC?

to provide deposit insurance for banking customers