Economics (Unit 1) Review

Identify the following as a good, service, or neither:

CD player

Identify the following as a good, service, or neither:

Cleaning a neighbor's pool

Identify the following as a good, service, or neither:

doing homework

Economic efficiency is achieved if the available resources are used in a way that supports the production of the ______________ possible goods.

• maximum

• minimum

When focusing on the goal of ___________, people work to increase the size, number, or output of goods and services.

• Economics

• Security

• Efficiency

• Growth

Because of conflicting desires among players in the free market, the ______________________must make and enforce laws against ______________________and fraud.

• producers, stealing

• producers, coercion

• government, coercion

• government, stealing

Select the economic indicators discussed in the lesson

• Trade

• Consumer Price Index (CPI)

• Deflation Rate

• GDP

• Unemployment Rate

________________is a simple approach for deciding to go with one decision over another.

• Analysis

• Benefit analysis

• cost analysis

• Cost benefit analysis

Which option is true about how costs and benefits are calculated?

• Money is a cost that everyone calculates the same way.

• Non-monetary efforts like time, effort, and sacrifice are part of cost.

• The cost of something is equal to its benefit to someone else.

• Everyone gets more benefit from something when they have less of it

When the supply of something is low and the demand is high, then the price will be high.

• False

• True