Economics Review

Which of the following describes an opportunity cost?

• Amal buys lemonade.

• Ella eats the lunch she packed at home.

• Marcos buys a hot dog and a bag of popcorn.

• Sam chooses to buy an ice cream sandwich instead of a cone.

In the 1860's many people decided to move west and become cattle ranchers. What is the most likely reason they did this?

• They believed they could get a lot of land for low price.

• They were motivated by the idea of operating a large ranch.

• They thought they could drive up the price of beef and make a lot of money.

• They thought ranchers would help improve the economy for many Americans.

What were some of the benefits of Henry Ford's assembly line? Choose two of the following.

• lower costs of raw materials

• increased productivity

• longer work days

• lower prices of cars for consumers

• faster cars

How does the Panama Canal affect trade?

• It helps coordinate trade agreements between different nations.

• It makes trade difficult in markets on the west coast.

• It increases trade between different regions of the world because it is easier to transport goods from one place to another.

• It makes trade easier, because it makes it easier for people to travel to other regions of the world in order to buy the goods themselves.

How do households contribute to the economy of the United States? Choose three of the following.

• They create the demand for goods.

• They create the supply of goods.

• They supply employees for businesses.

• They spend revenue that supports businesses.

• They create laws to govern spending.

Gas stations sell gas to the American public. What is this an example of?

• banks

• charity

• national government

• private business

What are some benefits of keeping money in a bank? Choose two of the following.

• Banks charge fees for their services.

• Banks protect your money for you.

• Bankers are friendly and helpful.

• Banks allow customers access to unlimited funds.

• banks pay customers interest on their savings.

Why do goods often have a different price at the register than the amount listed on the price tag?

• Sales tax is added to the cost of the item.

• Income tax is added to the cost of the item.

• Property tax is added to the cost of the item.

• Business tax is added to the cost of the item.

Spending money in a responsible way take knowledge and practice. What factors do people consider when comparison shopping?

• price and popularity

• price and availability

• price and size

• price and sales tax

What is the most likely reason that people comparison shop?

• to pay more for what they buy

• to get the best deal

• to borrow money

• to budget