Economics Review

How governments, businesses, and people use their money is called what?

Mrs Rice owns a cookie making business. She uses very high quality ingredients to make her cookies taste extra good. She needs to cut her costs, so she buys cheaper ingredients. What is the opportunity cost of buying the cheaper ingredients?

• cheaper ingredients

• extra good taste

• cookie labels

• machines

What is it called when businesses lower the price of a good in order to encourage people to buy it?

• economics

• opportunity cost

• price incentive

• market

Mrs. Brown wants to go to Finland. She makes a list of monthly income, monthly expenditures (what she spends), and monthly savings. What is this an example of?

• budget

• economics

• opportunity cost

• voluntary exchange

In Madison, you can find many _________, or places to buy goods.

• competition

• income

• imports

• markets

What is it called when one region, business, or person focuses on producing one thing?

• price incentive

• specialization

• opportunity cost

• voluntary exchange

Competition is good for consumers because it keeps the _____________ low and the __________ high.

• costs, prices

• prices, quality

• quality, prices

• income, exports

What is a budget good for?

• saving money and spending on needs first

• spending all of your money very fast

• price incentive

• goods and services

Which businesses specialize more?

• Walmart

• Bicycle Shop

• Target

• Bakery

• Dollar General

The next best alternative that is given up when a choice is made is called ___________.

• Price Incentive

• Opportunity Cost

• Voluntary Exchange

• Interest