Unit 1 Test Review

Needs are __.

• things you must have to survive

• things you desire but don't need

• are always public

• are always private

The 50/30/20 Rule states that 50% of your after-tax income should be spent on __.

• housing

• wants such as dining out, entertainment, & hobbies

• saving opportunities such as investments, savings, accounts, etc.

• needs like groceries, housing, & utilities

You spend time and money going to a movie. In return, you cannot spend your time at home reading a book and your money buying your mom a gift. This is next-highest-valued alternative illustrates what concept?

• SWOT

• Market alternative

• Opportunity cost

• Factors of production

Resources are items that people use to make/obtain what they need/want

• True

• False

Business is weakened if competition exists.

• True

• False

Which is NOT a factor of production?

• Natural Resources/Land

• Accounting

• Labor Resources

• Capital Resources

Economics is the study of how individuals & groups of individuals strive to satisfy their needs/wants by making choices.

• True

• False

In perfect competition, the quantity demanded (demand) and the quantity supplied will be equal. This is called the __.

• demand price

• supply curve

• equilibrium price

• perfect price

In the 1700's the US was primarily an agricultural-based economy. Today were are primarily a(n) ___ based economy.

• service

• industry

• information

The U.S. has the highest standard of living.

• True

• False