COPYRIGHTED MATERIAL
ARE YOU FINANCIALLY LITERATE? CHAPTERS 6-8
13. Which document may be looked to as the genesis of western civilization’s devotion to property rights? a. the Bible b. the Constitution c. Poor Richard’s Almanac d. The Magna Carta 14. Describe three benefits property rights bring to a society: _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 15. What are the benefits to the consumer of the ability to make a profit? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 16. How does capitalism promote innovation? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 17. What is a sector? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 18. List the 10 GICs sectors (1 pt each) _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ Property rights reduce risk which , in turn , encourages investment and business; Property rights promote social and commercial stability because they require the institutions and laws designed to protect those rights. Property rights are promoted and protected by laws governing commercial transactions, and by a reliable justice system with courts to enforce those laws. Profit promotes competition , which results in innovation and a better and greater selection of products and services and better prices. In a capitalist economy there is built-in pressure to generate new products and processes in order to stay profitable . Also, the ability to accumulate wealth motivates innovation . A sector is a broad segment of the economy in which businesses share the same or a related products or services. Consumer Staples, Consumer Discretionary, Energy, Materials, Industrials, Healthcare , Financials, Information Technologies, Utilities, Telecommunications PRODUCT PREVIEW
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Assessment 150
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