Budgets, Spending, and Savings

Which of the following describes an opportunity cost?

• Amal buys a lemonade

• Ella eats lunch she packed at home

• Marcus buys a hot dog and a bag of popcorn

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

What were some benefits of Henry Ford's assembly line? Choose TWO.

• lower costs of raw materials

• increased productivity

• longer work days

• lower price 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 househoulds contribute to the economy of the United States? Choose THREE.

• 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

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.

What is the most likely reason that people do NOT attempt to be an entrepreneur?

• People to not like being the boss.

• People do not want to take a risk.

• People do not have new business ideas.

• People do not like working for other people.

What is a budget?

• A list of monthly expenses

• A plan for saving and spending your money

• A list of income sources

• A savings goal

On Allison's budget, she lists that she earns $10 a week for babysitting and $5 a week for allowance. How would you best describe these items?

• income

• expenses

• savings

• donations

Which of the following would people most likely buy with money borrowed from a bank?

• clothing

• food

• house

• pet