Economics and Personal Financial Literacy Final Review

(a)   is characteristic of a society with a high degree of division of labor, where people depend on others to produce goods/services.

Which term describes a concept in economics that states if one factor of production is increased, while other factors are held constant, the output will eventually decrease?

• Diminishing Law of Returns

• Law of Diminishing Returns

• Decreasing Law of Returns

• Law of Decreasing Returns

Opportunity cost is the highest financial benefit given up when a choice is made.

• False

• True

What type of financial aid operates as the heavyweight big-hitters of the financial aid world? They can be described as, quite literally, free money. Most of these will come from the government, which means you will need to fill out the FAFSA.

• Scholarships

• Loans

• Grants

• Donation

What type of financial aid is a chance to get people and organizations to give you free money? These are awarded for many other reasons besides financial need.

• Grants

• Loans

• Scholarships

• Donations

What is pictured above?

• The Circular Flow Model

• The Business Cycle

• The Business Model

• The Circular Flow Cycle

Labor, (a)   , and capital make up the factors of production.

Every society faces the problem of (a)   , which means that resources are always limited compared with the number and variety of wants people have.

Which answer best matches the description of a 1099 form?

• A form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States.

• A form that an employer must send to an employee and the IRS at the end of the year.

• The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns.

• A form that details all "non-employee" compensation.

A (a)   is the standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns.