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Flow of Resources
The United States Economy Section 4
| Question | Answer |
|---|---|
| What are consumers? | People who buy goods |
| What flows between households and businesses? | Resources |
| What do Americans spend most of their money on? | Housing |
| What is the second biggest expense? | Transportation |
| What is the third largest expense? | Food |
| What demand goes up, supply goes | UP |
| What is trade? | Exchange of resources |
| What does trade create? | More trade |
| What happens if there is less trade? | The economy shrinks |
| What did the United States build to encourage trade? | Canal through Panama (The Panama Canal) |
| Why did the United States build the Panama Canal? | To increase trade with Europe and Africa |
| What does the Panama Canal connect? | Pacific and Atlantic Oceans |