Economics Review #1

What is economics?

• The study of how people make things.

• The study of how people use banks.

• The study of how people use productive resources and how people earn money by work at jobs.

• The study of stuff. (Please dear heavens DO NOT SELECT THIS ANSWER!!!)

What would be an example of NATURAL RESOURCES?

• Oil, water, gold, minerals

• Cars, airplanes, buses

• Cookies, smores, brownies

• Xbox ones, PS4s, Netflix

Which of the following would be an example of an entrepreneur?

• A professional athlete.

• A heart surgeon.

• Mr. Dunn.

• Someone presenting a new product on Shark Tank.

Which is the BEST definition of what profit is?

• Jobs provided by humans.

• Money that is leftover in a business after all the bills have been paid.

• The money it takes to purchase supplies for a business.

• The money paid to employees for working for a company.

A business purchasing a copy machine to use in their office would be an example of ...

• A capital resource

• A natural resource

• A human resource

• A big mistake...they always break!!!

A business hiring a custodian to help keep an office clean and functioning would be an example of a ...

• Natural resource

• Human resource

• Capital resource

• A waste of money...employees should clean up after themselves!!!

What are TWO examples of financial institutions (sometimes referred to as economic institutions)?

• Banks and credit unions

• Credit cards and check books

• Target and Kroger

• Kevin Hart and Lebron James

Which of the following is an example of opportunity cost?

• Going to Florida for vacation instead of the cruise you wanted to go on because it is cheaper.

• Buying two cells phones because you cannot decide which one is a better deal.

• Taking a loan out to purchase the car you really want even though you truly cannot afford it.

• Ordering pizza from Jockamo's because it is better than the Marco's Pizza by your house.

Which of the following is NOT an example of competition in economics?

• Coke and Pepsi advertising to try and get you to purchase their product.

• Nike and Under Armour trying to include famous athletes in their advertisements to increase sales.

• Best Buy lowering the cost of the new Ipad so consumers will buy it from them instead of the Apple Store.

• Netflix lowering the cost of their monthly subscriptions while Amazon is including free shipping on all purchases.

If I need to sit down with Mrs. Dunn and discuss a plan for managing money in our household, we are ....

• Creating a budget

• Praying that Mrs. Dunn does not go to Target in the next few weeks.

• Examining how to spend as much money as we can as quickly as we can.

• thinking about quitting both our jobs and living on love.