50. Describe institutions (e.g., banks, government agencies, large companies, small businesses) that make up economic systems (E-1A-M7)

public

The sector of the economy that includes the government.

private

The sector of the economy that includes businesses.

voluntary

The sector of the economy that includes non-profit institutions such as religious organizations and secular charities.

household

The sector of the economy that includes individuals and families.

taxes

The government collects ___ and borrows money from the private and household sectors.

entitlements

The government pays for contracts with the private sector and pays salaries and ___ to the household sector.

Treasury

The Department of the ___ is a cabinet-level government agency that manages the finances of the U. S. government.

FDIC

Regulates banks and insures bank deposits up to $250,000.

interest

The Federal Reserve attempts to manage the speed of economic growth in the U. S. by adjusting the ___ rates that it charges banks to borrow money.

IRS

The ___ collects taxes for the federal government in the United States.

SEC

Regulates the sale of stocks and other financial instruments in the United States. Protects investors from fraud. Maintains the integrity of the stock and commodity exchanges.

engine

The Private Sector is the ___ of the economy.

Genetic

Industries including farming, fishing, and logging.

Cod

Modern industrial fishing methods have depleted many species that once provided food for millions of people. ___ fish are the best example of a species depleted by overfishing.

Mines

___ extract solid mineral resources from the earth. Examples of mined resources include gold, silver, coal, diamonds, lignite, tin, halite (salt crystals), and iron.

Wells

___ extract liquid resources from the earth. Examples of liquid resources include crude oil, natural gas, water, and sulfur.

secondary

Businesses that create a tangible product (one that may be touched) are the ___ sector of industry. These are divided into light and heavy industry.

grid

Households and businesses that generate their own electricity are often described as "off the ___" if they are not connected to the electric system.

Light

___ industry produces smaller, less durable items such as clothing or computers.

Heavy

___ industry produces durable goods (such as cars) or large quantities of some good (such as gasoline refined from crude oil).

Service

___ companies provide intangible (non-touchable) goods, such as banking, food service (restaurants), legal aid, entertainment, healthcare, retail stores, wholesale warehouses, transportation, and insurance.

Banks

___ are (in the U.S. at this time) mostly private sector financial institutions that lend money at interest and provide financial services for fees.

securities

Stocks, commodities, and bonds are traded in ___ markets.

NYSE

The ___ is the largest securities market.

issues

The voluntary sector is driven by ___ rather than profits.

employment

Households usually exchange labor for money with the other sectors (public, private, and voluntary) through the ___ of family members.

Federal Reserve

The ___ is a quasi-public institution. The President appoints and the Senate confirms the chairman. However, the government does not control the actions of the ___. It is a privately-owned institution.

primary

The ___ sector of industry involves the gathering or extraction of natural resources.

agribusinesses

Farms, ranches, and related businesses are called "___." These private sector institutions provide food, fiber (e.g., cotton, wool), and other renewable resources to the economy.

Farming

___ is an example of primary sector genetic industry.

Manufacturers

___ process raw materials into products used by other businesses, government agencies, or households.

Construction

___ is part of the secondary sector of industry.

utilities

Electric ___, such as AEP-SWEPCO, produce electricity to power the other sectors of the economy.

Stocks

___ are certificates of partial ownership in a company.

Commodities

___ are raw materials from the primary industrial sector, such as raw coffee beans, crude oil, iron ore, and pork bellies.

Bonds

___ are certificates for loans to governments or businesses.

Investors

___ buy stock in corporations, providing investment capital to the corporation to buy capital equipment, hire labor, and expand operations.

Stockholders

___ may be paid dividends or receive additional shares of stock over time.

NASDAQ

The ___ is a computer-operated stock exchange specializing in high technology corporations.

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