stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
ECONOMIC INSTITUTIONS: The Backbone of American Capitalism Flashcards | StudBud
Explore
/
ECONOMIC INSTITUTIONS: The Backbone of American Capitalism
ECONOMIC INSTITUTIONS: The Backbone of American Capitalism
35 terms
·
StudBud Administration
·
72 plays
a quiz over the basic institutions of the American economy
Flashcards
35 cards
F
Practice quiz
P
Host live
L
Questions
35
Answers
1
often focused on real estate financing
banks
savings & loan associations
credit unions
cooperatives
2
Which of the following statements about the stock market is NOT true?
Buying stock always results in a profit.
Stock exchanges are the locations or platforms for trade.
Stocks can be traded electronically.
Stocks are "shares" of ownership in a corporation.
3
Households act as __________ in the product market.
producers
workers
consumers
employers
4
Which of the following is NOT a characteristic of a corporation?
protects individuals from personal liability
can involve investors who purchase shares of the company
easiest and most inexpensive business structure to start
most common form of business organization
5
Businesses act as __________ in the product market.
consumers
workers
employers
producers
6
What is an ADVANTAGE of a corporation over a sole proprietorship or partnership?
pay no taxes on profits
protects individuals from personal liability
complicated and costly to start
relatively inexpensive to start
7
business structure owned and controlled by its members (not outside investors)
nonprofit organization
delegation
partnership
cooperative
8
voluntary exchange between consumers and producers in the market
consumer sovereignty
limited role of government
profit motive
private property
9
Households act as __________ in the factor market.
workers
employers
producers
consumers
10
Walmart is an example of a:
cooperative.
corporation.
nonprofit organization.
sole proprietorship.
11
an independent legal entity, separate from the people who own, control and manage it
partnership
corporation
sole proprietorship
labor union
12
the general term for the organized trading of “shares” of a company
professional organization
corporation
stock market
financial institution
13
usually control entry into a particular profession and maintain standards for that profession
professional association
labor union
bank
professional cooperative
14
In the "circular flow of money", _____ exchange wages, rent, and other payments to _____.
workers, producers
communists, capitalists
households, businesses
producers, workers
15
The American economy is best described as a:
command economy.
mixed economy.
market economy.
traditional economy.
16
member-owned financial institution which serves a group that shares something in common
credit union
bank
savings & loan association
corporation
17
All of the following are economic goals of the U. S. economy EXCEPT:
to help those members of society with economic needs.
to provide public goods not provided by the private market.
to restrict free competition and restrict property rights.
to protect producers, consumers, and workers.
18
surplus revenues returned to members based on usage of the goods or services provided
corporation
cooperative
nonprofit organization
labor union
19
motivated not by profit, but by service to members
corporation
nonprofit organization
cooperative
bank
20
financial institutions include all of the following EXCEPT:
nonprofit organizations.
credit unions.
savings & loan associations.
banks.
21
Which of the following is NOT a business structure in the American economy?
professional organization
partnership
nonprofit organization
cooperative
22
the relationship between households and businesses in the factor and product markets
the cyclical nature of business
the circular flow of money
the circular flow of capital
the cyclical power of banks
23
Which of the following statements about the U. S. economic system is NOT true?
Central government planners set the price for most products.
Consumers choose to buy or not to buy products & services.
Most property is privately owned.
Workers may choose whatever job they wish.
24
Which of the following is NOT an economic institution found in a pure market economy?
Government
Sole Proprietorship
Private Corporation
Credit Union
25
money earned above the cost of producing a good or service
profit
tax incentive
tax
instant gratification
26
What is a DISADVANTAGE to the nonprofit organization business structure?
does not protect individuals from personal liability
do not have to pay taxes
makes money off donations which can be difficult
complicated and costly to start
27
The American Cancer Society is an example of a:
cooperative.
corporation.
credit union.
nonprofit organization.
28
most commonly used financial institution that receives deposits and makes loans
bank
savings & loan association
nonprofit organization
credit union
29
Which of the following is the best example of a labor union?
National Education Association
United Auto Workers
American Bar Association
American Medical Association
30
American capitalism is characterized by economic freedom. What does this mean?
Workers are motivated by self-interest.
The government regulates and protects the economy.
All property is privately owned.
Consumers, producers, & workers value choice & competition.
31
“shares” of a company representing ownership in that corporation and its earnings (and losses)
profit
money
stock
liability
32
business structure not usually taxed because of the benefits it contributes to society
savings & loan
cooperative
corporation
nonprofit organization
33
made up of dues-paying members with a collective bargaining agreement with an employer
professional organization
labor union
management
nonprofit cooperative
34
Businesses act as __________ in the factor market.
consumers
employers
producers
workers
35
most like a partnership in terms of liability, start-up costs, and business expenses
corporation
nonprofit organization
sole proprietorship
cooperative
