Civics_Ch10_Homework-1

=**Civics Ch. 10 Homework 1**= Reading comprehension and vocabulary on Economics - this homework is in two parts:

Read the passage and then answer the questions following the passage. You may need to look back through the passage to answer.
 * Part 1 - Reading Comprehension on The Economic System**

Americans enjoy important economic freedoms. Because of these freedoms, the U.S. economic system is often called a free market economy, or simply a market economy. Our economic freedoms include the freedom to buy and sell what we choose when we choose. Americans also enjoy the freedom to compete, to earn a living, to earn a profit, and to own property.

Americans are free to buy and sell any legal product. Shoppers can search for the best-quality goods and services at the lowest prices. If a price is too high, the buyer is free to look elsewhere for the product.

Producers are generally free to sell goods and services at prices that they think buyers will pay. If people do not buy a product or service, the producer is free to change the price or to sell something else. The term //free market// refers to the exchange between buyers and sellers who are free to choose. The role of the government in the free market is limited.

American businesses compete with one another for customers. That is, each business firm tries to persuade people to buy what it has to offer. In this system of free competition, buyers show which goods and services they favor every time they make a purchase. If consumers do not buy their product, producers will make something else or go out of business. Therefore, producers compete to make what they think the public will buy.

American workers are free to seek the best jobs that their training and education qualifies them to perform. In addition, they may bargain with their employers for higher wages, more benefits, and better working conditions. American workers are free to leave their jobs to find better ones or to start their own businesses.

Profit is the income a business has left after expenses. The desire to make a profit is essential to a free economic system. It is the reason that people start and operate businesses. It also is the reason that people invest in, or put money into, various businesses and valuable goods.

All Americans are free to do as they like with their own money. They may spend, save, or invest it. They may buy buildings, land, tools, and machines. These forms of property may be used to produce goods and services. That is, Americans may start their own businesses and use them to earn profits.

Under the U.S. economic system, the free market helps determine how Americans use limited resources. People are free to produce, sell, and buy whatever they choose. Of course, businesses would not last long if they produced things that no one wanted. Businesses must supply what buyers in the market demand.

__Questions to answer:__ 1. The reading is mostly about - (A) the emergence of bartering (B) the changing American family (C) the American economic system (D) shopping in America

2. Which of the following defines __free market__? (A) freedom to buy and sell (B) freedom to compete (C) freedom to earn a profit (D) all of the above (E) none of the above

3. The role of the government in a free market is (A) to control all businesses and consumers (B) to regulate where all Americans work (C) limited (D) to deny businesses the right to sell competitively

4. A producer of a product is generally free to - (A) change the price of the product (B) pay its workers less than the minimum wage (C) set the price of other businesses' products (D) lie about its product

5. American businesses are free to - (A) hurt consumers (B) forget to pay their suppliers (C) take advantage of workers (D) compete with one another for customers

6. According to the passage, why do most people start their own businesses? (A) because of the desire to make a profit (B) because they think it's exciting (C) because they want to be their own boss (D) because they like competition

7. What are some of the things Americans do with the money they earn? (A) invest it (B) spend it (C) start their own businesses (D) all of the above (E) none of the above

8. Which of the following happens as a result of the desire to make a profit? (A) people start and operate businesses (B) people invest in businesses (C) people invest in valuable goods (D) all of the above (E) none of the above

9. American workers are free to - (A) bargain with their employers on pay (B) seek the best jobs their training and education qualifies them for (C) leave their jobs to find better ones (D) all of the above (E) none of the above

10. In your own words explain the economic freedoms we have in America:

Answer the following questions dealing with economics vocabulary
 * Part 2 - Vocabulary on Goods and Services**

1. They key to mass production is to develop machine tools. These tools can be used on numerous products. What are machine tools? (A) machinery built to produce parts that are unique (B) machinery built to produce parts that are exactly the same (C) tools made by humans (D) tools used to make the cotton gin

2. One feature of mass marketing is the one-price system, which means that - (A) the price is stamped or bar-coded on a product (B) everything in a store has the same price (C) customers must bargain for each item the buy (D) there are many prices on one item

3. Michael Dell's idea was an innovation in production methods, something no one has come up with before. An innovation is - (A) when all the work in the U.S. is divided equally (B) the development of a new product, system, or process (C) a decision about what and how much to produce (D) opposite of a way out

4. Economics use the gross domestic product (GDP) as one measure of how well the U.S. economy is performing. They look at the GDP by looking at output of all businesses in the nation. What is gross domestic product? (A) the number of all goods produced in the U.S. (B) the number of all of the goods produced in other countries (C) the dollar value of all the goods and services produced each year in the U.S. (D) the cost of all the goods produced in the U.S.

5. An installment plan allows a buyer to use a product while paying for it. This is done when one takes out a loan or uses a credit card and makes payments. What does installment mean? (A) consumers have to pay for the item before leaving the place of purchase (B) the consumer pays more for the product (C) the price of an item is paid in equal payments over a period of weeks, months, or years (D) the price of the item is reduced

6. Railroads are an important part of the country's transportation system. Transportation used here means - (A) traveling by land only (B) a way to move goods (C) convincing consumers to buy a product (D) a part of the standard packaging system

7. Shoppers called impulse buyers may decide to buy a product based on its slogan, a display in the store, or television advertising. What does the word impulse mean? (A) acting without thinking (B) refusing to worry about bills (C) ignoring reality (D) acting immaturely

8. A good credit rating is important for buying a car or a house or in general getting a bank loan. What is credit rating? (A) a report that shows how much Americans owe to their creditors (B) a report that shows how much a customer has bought on credit (C) a report that shows whether a customer pays bills on time (D) all of the above

9. The interest rates paid on unpaid credit cards can be very high. What is interest? (A) money that banks and credit card companies pay the consumer for using their services (B) money that banks and credit card companies charge the consumer for the loan (C) money that banks collect from manufacturers (D) all of the above

10. Sometimes customers demand refunds for the merchandise they already bought, used, or abused. Merchandise is - (A) badly labeled products (B) goods that are bought and sold (C) services paid for with cash (D) misleading advertisements

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