Econ and Personal Finance Final Exam Prep

Which of the following is a need?

• Shelter

• Headphones

• Hat

• Cell phone

What is the difference between a need and a want?

• Needs are things necessary for survival

• Wants are things necessary for survival

• Needs are something you desire, but are not necessary for survival

Which of the following best describes scarcity?

• Human needs and wants are unlimited, while resources are limited

• Human needs and wants are limited, while resources are unlimited

• There are plenty of resources because human have few needs and wants

• There is an abundance of resources in the world

This morning you could have gotten out of bed but you decided to get up and attend school. The opportunity cost in this scenario was ________.

• Staying in bed

• Going to school

Supply is _______.

• The amount of something that is produced and available

• The amount something is demanded by consumers

• The resources needed to create something

• An unforeseen event that impacts the economy

The price of a product will increase when demand _________ and supply _______.

• Increases, decreases

• Decreases, increases

• Stays the same

The price of a product will decrease when demand ________ and supply ________.

• decreases, increases

• increases, decreases

• Stays the same

Which of the following will cause inflation?

• Too much money in the economy

• Too little money in the economy

• Changing the material money is made of

• Decrease in overall spending in the economy

When the U.S. uses fiscal policy, which of the following is adjusted in order to decrease inflation?

• Stimulus spending

• Interest Rates

• Demand

• Supply

When the Federal Reserve uses monetary policy, which of the following is adjusted in order to decrease inflation?

• Interest Rates

• Stimulus Spending

• Supply

• Demand