Economics via Schools PLP - Unit 1 CFU

When a shopper makes a rational choice, they _____.

• picks the item on sale

• picks the cheapest item

• picks the item he or she most wants

• picks the item used by his or her favorite movie star

• picks the item that represents the greatest value

When a shopper makes a rational choice, they _____.

• picks the item on sale

• picks the cheapest item

• picks the item he or she most wants

• picks the item used by his or her favorite movie star

• picks the item that represents the greatest value

Which of these represents things you miss out on when you decide to spend your money on something else?

• scarcity

• opportunity cost

• debt

• economic perspective

• rational choice

Which scenario would one most likely see in a traditional economic system?

• A farmer produces half of his crops for sale in the local market and stores the other half for future use or sale.

• A farmer grows a one-acre farm to produce all the vegetables his family will need over the course of a growing season.

• A farmer experiments with new agricultural techniques to improve the lives of farmers throughout his home region.

• A farmer grows an item like coffee using high-tech, innovative methods.

• A farmer quits his job so that he can pursue his one true passion—music.

Consumers and sellers create a ___ where goods and services are exchanged.

• command economy

• proletariat

• marketplace

• tariff

• tax

________ originated in the ideas of Marx and Engels that taught that all citizens should have the same wealth and social standing.

• Communism

• Traditionalism

• Free enterprise

• Evolution

One major cause of the 2008 financial crisis was that ___.

• President Bush decreased the gold supply

• banks made risky loans and inflated housing prices

• stock prices had not risen in ten years

• terrorists attacked America

• Congress passed new tariffs

Fluctuations through a series of economic expansions and contractions is part of ___.

• the business cycle

• the investment cycle

• the government

• budget process

• recessions

Which movement influenced the concepts of the market economic system?

• the Renaissance

• the Protestant Reformation

• Communism

• the Great Awakening

• the Enlightenment

A loss of value of money that causes a rise in prices is ______.

• depreciation

• deflation

• expansion

• inflation