Notgrass Economics Lesson 3 Already Passed

What are three examples of institutions that help an economy operate? {Ans: corporations, labor unions, banks}How might regulation increase the cost of goods? {Ans: companies pass on the costs of regulations to consumers in the form of higher prices}Why do many American companies choose to have their products made overseas? {Ans: cheaper labor}Give 4 examples of how a country at war can negatively affect trade? {Ans: workers leave to become soldiers, workers are wounded or killed, factories destroyed, trade with other countries disrupted}Why do high taxes on income discourage efforts by individuals to generate more income? {Ans: much of what they earn has to go to the government}What term describes economic effects external to the direct production of goods {Ans: externalities}