Economics SS4E1a-f & E2

If Lexus wants to make sure that she spends less money than she makes, then she should

• borrow money

• forget about saving

• go into debt

• make a budget

What is an opportunity cost?

• when goods are recycled into other goods

• something absent in command economy

• the next-best alternative you give in order to do something else

• when there is not a scarcity of goods and services

In Southern Colonies, which of the following is the clearest example of specialization?

• cotton plantations

• shipbuilding

• whaling

• newspaper publishing

All economic decisions include what concepts?

• collateral

• credit

• opportunity cost

• payment

Which element should you include in your personal budget?

• the value of a game you receive as a gift

• the value of a coupon you get for a free pizza

• the money your family spends on your food

• the money you earn as an allowance

A price incentive _______________________________________.

• encourages people to buy or produce goods and services

• is used by the government to raise taxes

• is made by consumers

• makes people not want to buy goods and services

How was the value of cash crops MOST connected with Southern farm owners' decisions to use slaves?

• It drove them to find the least expensive way to get their work done.

• It led them to look for the best farm workers living in the colonies.

• It forces them to try to find as many workers as they possibly could.

• It pushed them to find a way to do their work as quickly as possible.

What are incentives?

• motivators or reasons for doing something

• the consequences of negative actions

• the cost of decisions

• the value in dollars of goods and services

Which of these provides the BEST definition of voluntary exchange?

• a system of economics in which one leader makes decisions

• a market that is controlled by the state and private sectors

• the act of people freely buying and selling in a market

• the balance between public and private owners in an economy

What impact did the telegraph have on advancements in railroad transportation?

• It helped the rail lines establish a routine schedule.

• The rail lines were also able to inform passengers of complications and delays.

• Communication between each station improved.

• All of these are correct.