INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 31

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Interest you paid on your [vacation home | stereo] loan could be deducted.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Public Good

A service or product offered to every member of a society for free, by either a governmental entity or a private organization or person, with no intention of making a profit.

Tennessee Valley Authority

A U.S. government corporation established in 1933 to address issues related to flooding, electricity generation, and economic development in the Tennessee Valley region.

Consumption

The use of goods and services by households, constituting a primary component of GDP.

Price Mechanism

The system in which the forces of supply and demand determine the prices of goods and services in a market economy.