AP Macroeconomics Chapter 5(Correctly solved)
Households correct answersthe number one economic motor in the country.
Functional distribution of income correct answersindicates how the nation's earned income is
apportioned among wages, rents, interests, and profits.
Personal distribution of income correct answersindicates how the nation's money income is
divided among individual households.
Nondurable goods correct answersproducts that have expectant lives of less than 3 years. (ex.
Food, clothes, and gasoline)
Durable goods correct answersproducts that have expectant lives of more than 3 years. (ex. Cars,
laptops, TV's)
Services correct answersthe work done for consumers
Plant correct answersa physical establishment (a factory, farm, or warehouse) that performs one
or more functions in fabricating and distributing goods and services.
Firm correct answersa business organization that owns and operates plants.
Industry correct answersa group of firms that produce the same, or similar products.
Sole proprietorship correct answerswhere one person owns it and is fully responsible for its
operations.
Partnership correct answersA business owned by two or more persons and share the
responsibilities and benefits of that business
Corporation correct answersa legal entity chartered by a state or federal government that is
separate from the people who own it; it is treated as a person in the court of law.
Stocks correct answersshares of ownership of a corporation
Bonds correct answerspromises to repay a loan at a certain rate of interest. This is a loan.
Limited liability correct answersthe owners only risk is the money spent on their stock in the
corporation
Limited Liability Company correct answersis a partnership for tax purposes, but resembles a
corporation in liability. LLC's have a limited life, 30-40 yrs.
S Corporation correct answersa corporation with 75 or fewer shareholders
Principles correct answersare the stockholders of the corporation
Households correct answersthe number one economic motor in the country.
Functional distribution of income correct answersindicates how the nation's earned income is
apportioned among wages, rents, interests, and profits.
Personal distribution of income correct answersindicates how the nation's money income is
divided among individual households.
Nondurable goods correct answersproducts that have expectant lives of less than 3 years. (ex.
Food, clothes, and gasoline)
Durable goods correct answersproducts that have expectant lives of more than 3 years. (ex. Cars,
laptops, TV's)
Services correct answersthe work done for consumers
Plant correct answersa physical establishment (a factory, farm, or warehouse) that performs one
or more functions in fabricating and distributing goods and services.
Firm correct answersa business organization that owns and operates plants.
Industry correct answersa group of firms that produce the same, or similar products.
Sole proprietorship correct answerswhere one person owns it and is fully responsible for its
operations.
Partnership correct answersA business owned by two or more persons and share the
responsibilities and benefits of that business
Corporation correct answersa legal entity chartered by a state or federal government that is
separate from the people who own it; it is treated as a person in the court of law.
Stocks correct answersshares of ownership of a corporation
Bonds correct answerspromises to repay a loan at a certain rate of interest. This is a loan.
Limited liability correct answersthe owners only risk is the money spent on their stock in the
corporation
Limited Liability Company correct answersis a partnership for tax purposes, but resembles a
corporation in liability. LLC's have a limited life, 30-40 yrs.
S Corporation correct answersa corporation with 75 or fewer shareholders
Principles correct answersare the stockholders of the corporation
