Econ Review (Goods & Services, budget, opportunity cost)

Econ. Review (Goods & Services, budget, opportunity cost)

Multiple Choice

What is economics?

• the study of earth and all its variety

• the study of the rights and duties of citizens

• the study of ways to use resources to fulfill wants & needs

• the study of past events, particularly human affairs

​Goods & Services

A good is a physical item that consumers want. A service is not a tangible or physical item, but is still wanted by consumers. ... Together the term goods and services refers to what consumers are consuming and spending money on.

​What are some examples of goods & services?

​ Goods - Car, Shoes, Phone, Coffee cup, Baseball glove, Shirt, Book

​

Services - Firefighter, Police, Taxi/Uber driver, Babysitter, Waiter/Chef

​

​

Multiple Choice

Sarah wants to earn some money baking cookies. It costs her $1 to make each cookie, so she sells them for $3 each. She is trying to make a ______.

• good

• scholarship

• profit

• service

Multiple Choice

Amos lost a round of Blooket, then crashed out and broke his Chromebook, so he had to buy a new one. What type of purchase is this?

• good

• service

Multiple Choice

When Cruz purchased that haircut, what was he buying?

• good

• service

Multiple Choice

The Amount of Goods & Services that are available

• Supply

• Demand

Multiple Choice

The Willingness/ability for people to buy a certain good or service

• Supply

• Demand

Multiple Choice

An example of a good

• doctor

• furniture

• Door Dash delivery

• Lawn care service

Multiple Choice

An example of a service

• Chef

• boat

• table

• candy

​Budget

A budget is a plan for how to spend the resources (usually money) that you have. ​

​

​If you know what the plan is for every dollar of your money, then you will be in control of your money, and will be able to keep more of it.

​When something unexpected comes up in your life, you will be better prepared to deal with it if you know your budget.

​

​Examples:

• ​Your transmission goes out on your vehicle and all of the sudden you need an extra $1500

• ​The Braves make it to the World Series and all of the sudden you need an extra $1500

Multiple Choice

It is a good idea to have a plan for your money, and to have some extra money in your budget for unexpected expenses that may come up.

• true

• false

Multiple Choice

A budget can only be for money

• true

• false

​Opportunity Cost

​Opportunity cost is the value of what you miss out on when choosing between two or more options.

​

​If the choice is between option A and option B, and if you choose option B, then the opportunity cost is whatever benefit you would have gained from option A.

​

If you must choose between Zaxby's and Five Guy's for lunch, and you end up going to Zaxby's, you gain some tasty Wings N Things, but your opportunity cost is a delicious double cheeseburger and cajun fries (what you would have gained if you had made the other choice)

Multiple Choice

If you had $1 to buy either a drink, or some candy from the vending machine and you chose the candy, what is your opportunity cost?

• The candy

• The drink

• $1

• $0.25 because the drink costs $0.75 and the candy costs $1

Multiple Choice

You got tickets to go to the National Championship game. You also got asked out on a date by someone who you really like, but the date is on the same night as the game. If you go to the game, what is the opportunity cost?

• the game

• the date

• the travel time that it takes to get to the game

• it doesn't matter because UGA is going to win anyway!