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Household/Business
The United States Economy Section 2
| Question | Answer |
|---|---|
| What is a hold hold made of? | The people living together under one roof |
| What resources do households have? | Land, labor, capital, entrepreneurship |
| What in the world is entrepreneurship!? | Taking financial (money) risks to make a profit (more money!) |
| What is labor? | The work people do |
| What is the work people do called? | Labor |
| What do people get for their labor? | Money |
| What is it called to buy things to help you make money? | Capital |
| What is capital? | Things you buy to help you make money |
| What are some examples of a baker’s capital? | oven, pans |
| What are goods? Name one | Physical products (things you can touch/hold) |
| What are services? Name one | Work performed for others |
| What resources are involved in entrepreneurship? | Land, labor, capital |
| What are 3 ways employees make money? | hourly, salary, or per good they sell |
| What is a salary? | A set amount paid at regular times |
| What did businesses need to operate? | Resources |
| Where do resources for businesses come from? | Households |
| What can people buy to own part of a company? | Stocks |
| What are stocks? | When people buy part ownership of a company |
| What is a shareholder? | A person who buys part of a company |
| What is it called when people own part of a company? | Shareholder |
| What do shareholders receive? | Profit |
| What is profit? | Money made from a company |
| What happens to a shareholder if a company loses money? | The shareholder loses money too |
| What are the two largest stock exchanges? | New York Stock Exchange NASDAQ |
| Where are the two largest stock exchanges located? | United States- Wall Street (New York City) |
| What is a retirement plan called? | 401K |
| Where does 401K come from? | Automatically taken from your paycheck |
| What are entrepreneurs? | People who use talents and creativity to make money |
| How do entrepreneurs contribute to the economy? | Buy things or invest their money |