Week 3 Studies Weekly Test Review

How does a budget help you get things you want?

• Budgets help us plan ahead and save money for things we want after buying things we need.

• Budgets do not help.

• Budgets help us spend more money than our income.

How do parents provide food for their family?

• She produces it with natural resources.

• She works and uses her income to buy it.

• She barters with neighbors for this food.

Companies use advertisements to convince us that we need something enough to buy it, even if we only want it.

• True

• False

What is the overall outcome of the four sectors of our economy working together?

• to produce goods at high prices

• to produce services at high prices

• to produce and distribute goods and services

What should you make sure to include when creating a personal budget?

• Be sure to include all of your income and all of your expenses.

• Be sure to include the cost of your weekly snacks.

• Be sure to include all of the money you spend at the movies.

Which of the following are examples of an opportunity cost? Mark 2 answers.

• going to the movies instead of buying a new book

• buying a new skateboard instead of buying a new bike

• making a budget of your money for a month

• paying interest on money you borrowed from your parents

The person or business who makes a good is called _____________________.

• supply

• consumer

• producer

When the supply of a good is high, the price decreases.

• True

• False

Competition is not good to have among businesses.

• True

• False

What is the difference between a want and a need?

• A want is not required to live and a need is required to survive.

• A want and a need are the same thing.

• A want is required to survive. A need is not required to survive.