Name:
Date of Test:
Period:
Unit 3 Test (Chp. 8-10)
Study Guide
Directions: Using your notes on chapters 8-10, answer the following questions/statements.
Chp 8: Money, Banking, Saving, and Investing
1.
What are the three functions of money?
2.
What are the six characteristics of money?
3.
Define:
a.
Commodity money -
b.
Bank notes -
c.
Fiat money -
d.
Compound interest -
4.
How do banks make a profit?
5.
What is the goal of the Fed? __________________________________________________________________________
6.
How does the Fed achieve its goals?
7.
How does the Fed function?
8.
Define
a.
9.
Compound interest -
List and define the three main different types of investment? Rank them in order of Risk (1=riskiest)
a.
b.
c.
Chp 9: Entrepreneurs and Business Organizations
10. What role do entrepreneurs play in the economy?
11. What critical role do entrepreneurs play in the economy?
a.
Incentives for entrepreneurs?
b.
Risks?
12. What percentage of restaurants fail within the first year?
13. Most businesses in the US are
a.
Benefits?
b.
Risks?
14. Benefits of a partnership.
a.
Risks?
15. Who owns a corporation?
a.
Benefits?
b.
Risks?
.
16. Benefits of a cooperative.
a.
Risks?
17. What is a franchise?
a.
Benefits?
b.
Risks?
18. Describe the steps a business must go through in order to become a corporation.
19. Why would a person by stock in a company?
20. What are business ethics?
Chp 10: Human Capital and the Labor Market
21. Job growth has shifted from manufacturing to the
a.
.
Why?
22.
is when part of a job is done outside a company while
is when work is done outside the country.
23.
is bringing jobs from foreign companies to the US.
24. What workers earn depends primarily on their
and how much
.
25. Workers with (higher -OR-
lower) skills and education tend to earn a higher income.
26. A difference in wages earned by various groups in society, is called
.
27. Unskilled workers earn low pay because
.
28. What is the goal of affirmative action?
29. What are four (there are six) ways to increase you human capital?
a.
b.
c.
d.
30. Historically, unions have helped workers
.