Economics Unit 1 Answers PHS

(Q2) Which scenario would one most likely see in a traditional economic system?

A farmer grows a one-acre farm to produce all the vegetables his family will need over the course of a growing season.

(L8) What was the problem that created bank runs?

Banks did not have enough cash on hand for all its depositors, so people rushed to withdraw their money.

(Q2) A _______ government holds near complete control over the lives of its citizens.

totalitarian

(Q2) A(n) ________ economic system is characterized as agricultural and lacking in technology.

traditional

(PT) A period when a country's economy (GDP) is at its lowest output is a _______________.

trough

(PT) To which factor does the arrow on the business cycle chart point?

trough

(L4) In which system does the government control some vital industries while allowing free markets in others?

mixed

(Q2) The government controls some but not all industries in a(n) _________ economic system.

mixed

(Q2) The federal government was weakened under the Articles of Confederation, so the Congress did not have the power to ___.

collect taxes and regulate commerce

(L4) Which system provides little chance to succeed or gain wealth?

command

(PT) Hamilton's economic plan included all of the following parts EXCEPT ___.

creation of a new set of bank notes

(Q3) What was NOT a part of Hamilton's economic plan?

creation of a new set of bank notes

(Q1) The U.S. government debt in 2015 was about ___.

$14 Trillion

(L1) In 2015, how much debt did the U.S. government have?

$14 trillion

(L3) Choose True or False. True False True False

Choose True or False. Bartering is a method of acquiring goods through trading that is typical of traditional economies. Bartering is made easier through a double coincidence of wants. Afghanistan has a traditional economic system. Growing crops for profit is known as subsistence farming.

(Q1) Match the definitions with the terms. unsecured debt economic perspective secured debt scarcity

Match the definitions with the terms. money owed that imposes a higher interest rate because repayment is not guaranteed weighs the costs and benefits of each measure before making an economic decision money owed that is guaranteed by the thing it is used to purchase a problem created by unlimited wants and limited resources

(L1) _______ is the problem that arises due to limited resources and unlimited wants.

Scarcity

(Q2) Concepts of the market economic system stem from which movement?

the Enlightenment

(L5) Rephrase each passage from the U.S. Constitution in your own words. Amendment XVI "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

(AMV) My Answer: Congress has the authority to arrange and gather taxes on wages from where it was obtained, without allocation within the States, and disregard for population or registration.

(Q1) Which scenario best explains scarcity?

A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.

(Q1) Which decision is NOT one made with an economic perspective?

A young man buys an old car without thinking about the costs associated with fixing the vehicle, and the fact that it will probably only last for months.

(PT) Which scenario does NOT express a decision made with an economic perspective?

A young man makes an impulse buy and purchases two CDs he heard about from a friend.

(Q2) Which philosopher is most associated with a free-market economy based on self-interest?

Adam Smith

(L7) Give an example of a company that would add to the GNP of the United States.

An American company manufactures furniture in North Carolina that is sold in the united States and other countries.

(L3) Which of these scenarios best represents a traditional economic system?

An Amish family sells the furniture they have made for generations.

(L7) Which company would add to the GDP of the United States?

An Indian company produces electronic devices at a factory in California.

(Q1) The ___ is an organization that works to protect consumers.

Better Business Bureau

(L4) Match the descriptions with the words. marketplace capitalism self-interest market market economy profit mixed economy consumers

Match the descriptions with the words. the physical or virtual place where buyers and sellers go to conduct business another economic term for a market economy the idea that the buyer and seller both seek to do what is right for the other in order to guarantee their continued access to the other the collective word for the consumers and sellers within a country a capitalistic economic system in which the market determines the major questions of economic production and development the main goal of those in business in a market economy an economic system in which the government controls vital industries while allowing capitalist or market principles to exist in the rest of the economy the individual buyer, seller, or trader of goods in an economic system

(L6) The _______, also known as the Necessary and Proper Clause, is a portion of the U.S. Constitution that allows the federal government to pass laws to assist in carrying out its duties.

Elastic Clause

(PT) _______ is a period when the economy and GDP begin to improve and grow. It is characterized by lower unemployment, an increase in consumption and investment, and banks willing to loan money.

Expansion

(L2) Which government agency deals most directly with consumers in how it protects their rights?

Federal Trade Commission

(PT) Which government agency ensures that businesses operate legally so that the consumer will not be misled or harmed?

Federal Trade Commission

(Q1) Which government agency deals most directly with consumers and their rights and protection?

Federal Trade Commission

(L6) ____ means taking in old bonds and reissuing them at full value.

Funding at par

(PT) _______ is the statistic that shows the total value of all goods produced within a country regardless of national affiliation.

GDP

(PT) ___________ is the total value of all goods produced within a particular country regardless of what country the business is from.

GNP

(L6) During the Revolutionary War, Alexander Hamilton worked as an assistant to ___.

George Washington

(L6) How did Alexander Hamilton justify his argument for a national bank?

Hamilton stated that since the government was responsible for taxes and tariffs, it needed a place to keep the money. Therefore, he reasoned that the Elastic Clause gave the government the power to create a national bank.

(Q1) What aspect of government spending recently increased greatly in the spring of 2010?

Healthcare spending

(L5) Match the definitions with the terms. commerce tariff revenue bills tax

Match the definitions with the terms. conducting of business a tax on imported goods any bill passed by the House of Representatives to potentially raise money for government operation any measure the government uses to collect revenue from the people to help pay for various services or government actions

(L2) Match the definitions with the terms. credit rational choice consumer responsibility opportunity cost unsecured debt debt interest secured debt

Match the definitions with the terms. history of your payment record choice made considering opportunity cost learning as much as you can before buying something the cost associated with giving up something in order to get something else debt that is not guaranteed by anything and typically warrants a high interest rate money owed to another money charged by a lender to a customer for borrowing money debt that is guaranteed by the thing that is purchased

(L3) Match the definitions with the terms. traditional economic system double coincidence of wants barter system command economy subsistence farming communism totalitarian proletariat

Match the definitions with the terms. system under which people within a community perform the same economic functions as their forefathers and ancestors requires that, in a transaction, people have something the other wants and are willing to give it up for that other item the trading of one item to receive another item; creates a double coincidence of wants an economy in which all decisions are made by the government with little to no input by the people farming that is done simply to feed the family of the grower and not to sell goods for a profit form of government that stemmed from the economic ideas of Karl Marx and preaches the idea that all citizens should be equal in wealth and status a centralized government with near-complete control over the lives of citizens a French word that explains the working class as written by Karl Marx and Friedrich Engels

(Q3) Match the definitions with the terms. over-speculation peak inflation depression depositor

Match the definitions with the terms. the term used for the overvaluing of property or land the point at which a country's GDP and economy reach top efficiency and are immediately followed by a downturn a rise in prices due to the loss of value of money a recession that is very long and severe a person who places money in a bank

(L7) Match the labels with the letters on the economic trends chart. D A C B

Match the labels with the letters on the economic trends chart. trough total economic output peak time

(L8) Match the recessions and depressions with the dates. 1837 1929 1893 1857 1819 2008 1873

Match the recessions and depressions with the dates. a recession that occurred partially due to Andrew Jackson's call to only use hard currency in the sale of public land in order to weaken the national bank the Great Depression the worst U.S. economic crisis prior to the Great Depression; led to the growing popularity of the Populist Party a recession caused by a great influx of gold into the market and a surplus of grain due to participation in the Crimean War a recession created during the Era of Good Feelings due to overspeculation a recession caused by banks making risky loans to homebuyers, leading to a collapse in home prices, unemployment, and declining stock prices a recession that was known for the widespread call for the return of the greenbacks

(L7) Match the terms with the definitions. gross domestic product (GDP) gross national product (GNP) business cycle peak recession trough expansion

Match the terms with the definitions. value of all goods made within a country value of all goods native to a country whether they are produced in the country or not a series of economic expansions and contractions when a country's GDP is at its best a decline of a country's GDP (peak to trough) when a country's GDP is at its worst a growth of a country's GDP (trough to peak)

(PT) Match the words with the descriptions. scarcity rational choice consumer responsibility credit debt interest market economy barter system Adam Smith command economy

Match the words with the descriptions. problem that occurs due to limited resources and unlimited wants decision made based on maximum benefit and value knowing as much as you can before buying consumer's record of debt payment and fulfillment of financial obligations money owed by an individual, company, or government the charge a lender places on borrowed money The market (consumer) decides what is made, sold, and bought. trading one item to receive another item wrote Wealth of Nations on the advantages of a market economy (capitalism) All economic decisions are made by the government with little or no input by the people.

(L4) ___ was an economic historian who heavily influenced the British Labour Party after World War I to move the country towards a mixed economy.

R.H. Tawney

(PT) The collapse of ___ greatly altered U.S. military spending.

Russia

(Q1) Which country's collapse greatly altered U.S. military spending?

Russia

(Q1) Credit refers to ________________.

a consumer's record of going into and getting out of debt in a faithful and punctual way

(Q1) Which purchase requires good credit?

a house

(L8) Match the definitions with the terms. foreclose depositor depression inflation overspeculation Specie Circular hard currency

Match the definitions with the terms. to take possession of one's property due to the inability to repay a debt a person who places money in a bank a long and severe form of a recession a rise in price due to currency devaluing the overvaluing of property or anything else an executive order requiring the purchase of public land be made in gold or silver a form of money such as gold or silver that is more durable than paper

(Q2) There is little chance to gain wealth or succeed in a ____ economic system.

command

(Q2) The conducting of business is called ______.

commerce

(Q2) Consumers and sellers create a ___ where goods and services are exchanged.

marketplace

(L4) What is the goal of a mixed economic system?

prevent the abuses and shortcomings of both the command and market systems

(PT) The National Bureau of Economic Research is an independent, ______ organization not found within the government that observes and tracks the actions of the business cycle.

private

(Q2) The French word for a member of the working class is _________.

proletariat

(Q1) In 1962, President John F. Kennedy made a speech in which he spelled out the rights that a consumer has when purchasing something. Which one of these rights was NOT included in Mr. Kennedy's speech?

right to redress

(Q2) The idea of ___ is that both the buyer and seller will do what is right in order to maintain a trading relationship.

self-interest

(Q3) In order for a country's economic condition to be considered a recession, the economy and GDP must be in decline for ___.

six months

(Q2) Foreign countries convinced the United States to form a stronger federal government by ___.

taking advantage of the young republic

(Q2) A(n) ________ is a tax on goods imported from other countries.

tariff

(Q3) In 1837, President Andrew Jackson caused a depression for Martin Van Buren during his fight with ___.

the Bank of the United States

(Q3) Which war and the subsequent agricultural surplus helped cause the 1857 depression?

the Crimean War

(PT) Which movement influenced the concepts of the market economic system?

the Enlightenment

(L6) The Department of _______ is responsible for the making of money or the collection of it through taxes by the U.S. government.

the Treasury

(Q2) The inventors of the mixed economic system, chief among whom was R.H. Tawney,came from ___.

the United Kingdom

(Q2) The concept of a double coincidence of wants is the instrumental part of ___.

the barter system

(Q3) Fluctuations through a series of economic expansions and contractions is part of ___.

the business cycle

(PT) During the 1873 depression, the people in debt were in favor of ___.

the reissue of greenback dollars from the Civil War

(Q3) Those suffering from the 1873 depression pushed for ___.

the reissue of greenback dollars from the Civil War

(PT) In the area of economics, the government divides its earning marks into quarters, or every ___ months.

three

(L7) Which length of time makes up a quarter, or the period of time that governments use to measure their economies?

three months

(Q3) Economically, the government divides its earning marks into quarters, or every ___.

three months

(PT) In 1837, President Andrew Jackson contributed to a depression that followed after Martin Van Buren took office because of his fight ___.

to close the Bank of the United States

(PT) The biggest responsibility that consumers have is ___.

to educate themselves on the products they are interested in, including their benefits and potential costs or problems

(Q1) What is the biggest responsibility that consumers have?

to educate themselves on the products they are interested in, including their benefits and potential costs or problems

(L4) Which system is often characterized as an agricultural economy with little technology?

traditional

(L3) Describe Karl Marx and Friedrich Engels' THREE main points in the Communist Manifesto.

• Capitalism features exploitation of workers (proletariat) by the owners. • There are inherent flaws in capitalism. • World history is defined by class struggle.

(L6) Select the first THREE executive departments in the U.S. government.

• Department of War • Department of State • Department of the Treasury

(L4) Select THREE facts about Adam Smith. Check all that apply.

• He authored The Wealth of Nations, a major work explaining that a free market would thrive under the idea of mutual self-interest. • He was greatly influenced by the Enlightenment movement. • The Scottish philosopher influenced the efforts and ideas of democracy advocated by our Founding Fathers.

(L3) Select FOUR reasons why lack of incentive is one reason for the failure of communism.

• It is illegal to own property or business. • It hampers incentive and improvements. • The type of government normally associated with communism does not allow for personal freedom. • It often results in a lack of available goods.

(L5) How did foreign powers convince the United States of the need for a stronger federal government?

• North African pirates confiscated American goods and kidnapped American sailors. • Both the British and the French closed off ports to American shipping. • the Spanish refused to allow the Americans access to the Mississippi River.

(L3) Select FIVE characteristics of a command economy.

• There is equal distribution of wealth. • The government makes all economic decisions. • There is no private property or private business. • There is a totalitarian form of government. • there is limited availability of goods.

(L6) Select TWO things that Alexander Hamilton passed to pay the U.S. debt.

• an 8% tariff on imported goods • a tax on whiskey

(L4) Select FOUR characteristics of a market economy system. Check all the apply.

• consumer power in directing the economy • private ownership of property and business • usually honesty in business dealings due to mutual self-interest • the pursuit of self-interest

(L8) Select THREE historical common causes of U.S. recessions.

• overspeculation • bad loans • surplus of things such as agricultural products and gold

(L8) Select THREE causes of the Great Depression.

• poor use of credit • surplus of agricultural goods leading to lower prices • higher tariffs

(L6) Alexander Hamilton was the first ___.

Secretary of the Treasury

(L5) Rephrase each passage from the U.S. Constitution in your own words. Article VI - Debts, Supremacy, Oaths "All Debts contracted and Engagements entered into, before the Adoption of this Constitution, shall be as valid against the United States under this Constitution, as under the Confederation."

(AMV) My Answer: All credit obtained and involvements enlisted, before the Adoption of this Constitution, may be authentic in the United States covered by this Constitution, as under the Confederation.

(L5) Rephrase each passage from the U.S. Constitution in your own words. Article I, Section 7 - Revenue Bills, Legislative Process, Presidential Veto "All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills."

(AMV) My Answer: All money raising proposals must begin in the House of Representatives; but the Senate can submit or agree with Amendments as they do with other Bills.

(L5) Rephrase each passage from the U.S. Constitution in your own words. Article I, Section 8 - Powers of Congress "The Congress shall have Power To Lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts...but all Duties, Imposts and Excises shall be uniform throughout the United States."

(AMV) My Answer: Congress is able to arrange and gather taxes, levies, charges, and tariffs, to pay capital but the levies, charges, and tariffs must be consistent throughout the States.

(L5) Rephrase each passage from the U.S. Constitution in your own words. "To borrow money on the credit of the United States; to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes...uniform Laws on the subject of Bankruptcies throughout the United States;

(AMV) My Answer: To loan money on loan of the United States; to adjust international trade, in the many States, and Indian Tribes...identical rules and regulations over insolvency within the United States.

(Q2) What country or region best exemplifies a traditional economy?

Amazon Rainforest of South America

(PT) Fluctuations between economic contractions and expansions are known as the ______________.

business cycle

(PT) ___ held a large portion of U.S. debt in 2010.

China

(Q2) ________ originated in the ideas of Marx and Engels that taught that all citizens should have the same wealth and social standing.

Communism

(L2) Which organization does NOT work for consumers?

Federal Treasury

(L3) Choose the TWO German philosophers who wrote Das Kapital and the Communist Manifesto.

Friedrich Engels Karl Marx

(Q2) Which of these is NOT a characteristic of a command economic system?

encouragement of the pursuit of wealth

(Q1) What is the purpose of interest?

It allows the lender to make money in exchange for giving money to those who need it.

(L4) What is a criticism of the market economy?

It does not promote fairness or take care of those who have difficulties succeeding within the system.

(L7) The ___ is an independent and private organization that tracks the actions of the business cycle.

National Bureau of Economic Research

(L8) What was the effect of the Specie Circular policy?

Paper currency lost value.

(Q3) The depression of 1893 was directly responsible for the growing popularity of the ___ Party.

Populist

(Q2) _______ is the primary motivating factor in a market economic system.

Profit

(L1) The collapse of ________ greatly altered U.S. military spending.

Russia

(L6) How did the national government taking on the state debts strengthen the United States?

Taking on the state debts united the states because they then had an interest in seeing the young nation succeed in paying off the bonds.

(PT) All of the following are economic powers of the U.S. government under the U.S. Constitution EXCEPT ___.

The Senate passes all bills dealing with revenue.

(Q3) What was Thomas Jefferson's argument against the creation of a national bank?

The government did not have the constitutional authority to do so.

(Q2) What is the importance of Karl Marx and Friedrich Engels?

They preached the idea that capitalism was inherently flawed and that society will only improve when the workers take control of the economy.

(L6) ___ was one of the leading opponents to Alexander Hamilton's request for a national bank.

Thomas Jefferson

(PT) Which scenario would NOT affect the GNP of the United States?

[an American-based car company in Nagaoka, Japan]

(Q3) Which of these would NOT add to the GNP of the United States?

a German-based grocery store in Champan, Illinois

(Q3) Where can you find the agency responsible for putting together business cycle information—in particular, when the cycle peaks and plummets?

a private company not found within the government

(Q3) Which factor was NOT a cause of the Great Depression?

a protest against U.S. dealings in Southeast Asia

(L7) What follows a country's economic peak?

a recession

(Q3) A country's economic peak is followed by ___.

a recession

(Q3) The lowest period for a country's GDP is called ___.

a trough

(Q3) One of the major causes of the economic downturn of 1819 was ___.

a wave of overspeculation in the Western frontier territories

(PT) The future of the U.S. Social Security system is in jeopardy because of a large number of ___ and a declining birth rate.

aging baby boomers

(L2) Which of these purchases would require you to have good credit?

an $8,000 loan for a car

(PT) Which scenario would NOT affect the GDP of the United States?

an American-based investment firm in Australia

(Q3) Which of these would NOT add to the GDP of the United States?

an American-based investment firm in Switzerland

(L6) A(n) ________ is a form of loan that the debtor is legally responsible to repay with interest by a certain date.

bond

(Q1) What segment of U.S. society represents a challenge to the Social Security system?

baby boomer generation

(Q3) One major cause of the 2008 financial crisis was that ___.

banks made risky loans and inflated housing prices

(Q2) Transactions in a traditional economy are typically done with ___.

barter or trade

(L6) Once in office, Alexander Hamilton first sought to deal with the country's ___.

debt

(L2) What is perhaps the most important responsibility that consumers have?

educating themselves on products before making a buying decision

(Q3) An economy going from the trough to the peak is said to be in a state of ___.

expansion

(L4) According to the tenets of the market economic system, the ___ has little to no role in the country's economy.

government

(L1) The portion of U.S. government spending going toward _____ took up the largest percentage of the 2016 budget.

healthcare

(PT) Which of the answers took up the largest percentage of U.S. spending in the 2016 budget?

healthcare

(Q1) Which portion of U.S. government spending took up the largest percentage of the 2016 budget?

healthcare

(PT) In 2010, ___ was increased greatly.

healthcare spending

(PT) A loss of value of money that causes a rise in prices is ______.

inflation

(Q2) Which of these is NOT a characteristic of a market economic system?

lack of private ownership of resources

(L4) Which system has profit as a primary motivating factor?

market

(Q1) Choosing between spending money on a new suit or a vacation is an example of ___.

opportunity cost

(Q1) Which of these represents things you miss out on when you decide to spend your money on something else?

opportunity cost

(PT) The ________ is reached when a country's economy (GDP) is at its highest output; after that, the economy enters a recession.

peak

(L1) Economic ______ is a method of making economic decisions by first weighing the benefits and costs associated with each measure.

perspective

(Q1) When a shopper makes a rational choice, he or she ___.

picks the item that represents the greatest value

(PT) A slowdown in the economy characterized by rising unemployment, a lack of consumption and investment, and banks being slow to lend money is called _______.

recession

(L2) Select the four rights of a consumer.

right to choose right to be informed right to safety right to be heard

(L7) For how long must a country's economy and GDP decline in order for the country to be considered to be in a recession?

six months

(PT) A country's economy and GDP must be in decline for this long in order for its economic condition to be considered a recession.

six months

(L5) Rephrase each passage from the U.S. Constitution in your own words. Preamble :"We the People of the United States...secure the Blessings of Liberty to ourselves and our Posterity...."

(AMV) My Answer: As American citizens, we protect the right of freedom to us and our children...

(L5) Rephrase each passage from the U.S. Constitution in your own words. Amendment XIV, Section 4 "The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void."

(AMV) My Answer: The legitimacy of the public deficit of the United States, certified by law, among deficits obtained for deposit of annuities and grants for assistance in containing rioting and discord may not be investigated. But neither Country or State will accept or compensate any debt or burden acquired in assistance of rioting and discord towards the United States, or any insistence for the casualty or independence of slaves; but all deficits, agreements, and claims may be held illegal and annul.

(L5) Rephrase each passage from the U.S. Constitution in your own words. "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;"

(AMV) My Answer: To supervise and control national and foreign money, and secure the Standard of Weights and Measures.

(L6) What was the main argument used against a national bank?

A bank was unconstitutional because the Constitution did not explicitly provide for one.

(PT) In a traditional economic system, which scenario would one most likely see?

A farmer grows a one-acre farm to produce all the vegetables his family will need over the course of a growing season.

(Q1) What country owns a large portion of U.S. debt?

China

(L5) Choose True or False. False False True False False True False True

Choose True or False. The U.S. Constitution was the first governing document in U.S. history. The Congress under the Articles of Confederation possessed strong legislative (law-passing) powers. Under the Articles, the Congress made up the legislative branch. Under the Articles, the judicial branch was a powerful force in the federal government. Under the Articles, the Congress had the power to collect taxes from the states. Under the Articles, the Congress did not have the power to regulate commerce or tariffs. Under the Articles, the Congress could amend the document with the approval of two-thirds of the states. Under the Articles, the position of the President did not exist.

(Q1) Choose if the statement concerns Economic perspective or if it concerns Scarcity. Scarcity Economic perspective Scarcity

Choose if the statement concerns Economic perspective or if it concerns Scarcity. A rise in the price of groceries results in consumers spending less on entertainment. A woman reviews her budget, debt, and spending habits when considering whether to purchase a home. Many parents are unable to find and purchase a popular toy at Christmastime.

(Q2) The _______ was a pamphlet of communist economic thought.

Communist Manifesto

(PT) The Articles of _____ was the first constitution of the United States that gave more power to the states and left the federal government weak.

Confederation

(L2) Which example illustrates opportunity cost?

Daniel has $20. He is considering whether to spend it on movie tickets or a book he wants to read.

(L3) __________ detailed the flaws of capitalism and how it could eventually end with a worker operated government with no social classes.

Das Kapital

(Q2) ______ attempted to explain how capitalism could end in a worker-operated government without social classes.

Das Kapital

(L3) ____ is a pamphlet of communist economic thinking that highlights the need for a new type of government and economy.

Das Kapital//The Communist Manifesto

(PT) One of the first three departments of the early American government was the ___.

Department of State

(Q3) Which was one of the first three departments of the early American government?

Department of State

(L1) Select True or False. True False True False False True False True False True

Select True or False. Government spending on healthcare has increased due to recent legislation. Social Security is normally paid out in one lump payment upon retirement. The baby boomer generation represents a challenge to the Social Security system. Military spending changed a great deal in the 1970s. The current national debt is roughly $450 billion dollars. China holds a vast portion of the U.S. national debt. The current U.S. budget calls for about $1 trillion a year. Roughly 21% of the U.S. budget is spent on national defense. About 5% of the U.S. budget is spent on welfare. According to experts, most Americans have little understanding of economics.

(L1) Select if the statement concerns Economic perspective or if it concerns Scarcity. Economic Economic Scarcity Scarcity Economic

Select if the statement concerns Economic perspective or if it concerns Scarcity. A woman considers her salary when buying a new car. A young man does not go out with friends as he saves for a new suit. Americans cannot drive as much because of high gas prices. Tickets for a concert sell for high prices online because more people wish to attend than tickets are available. A young woman pays for medical insurance rather than purchasing a new television.

(L4) What is the only way that capitalists say can ensure everyone has the chance to be wealthy?

The government leaves alone those who are wealthy.

(Q3) Why might the states be upset at the federal government paying off their debts?

The states did not want to be answerable to the federal government and therefore be put in a weaker position.