Factors that Affect Economic Decision Making

People make economic choices based on the amount of resources (money) they have.

• True

• False

Which economic system do we live under in the United States of America?

• Statism

• Feudalism

• Capitalism

• Socialism

People typically respond to __________ in predictable ways.

All people's economic choices involve....

• Capitalism

• Costs

• Fun

• Loss

Find the section in your notes titled "Factors that can Influence a Decision".

Which one of these factors do you think plays the largest influence on your economic decision making? Explain your answer

What is the purpose of a "Pros and Cons" list?

• To avoid your issues and put them to the side

• To create a list of good and bad for your problem to help you decide

• To help you eliminate several options to find the right one

• To figure out who is a pro athlete and who is a convicted criminal.

What are "interest rates"?

• Losing money on something you really like to do

• The amount of time you have to finish a school project

• The cost of borrowing money

• The cost to buy a brand new car

Are "consumer prices" in 2022 higher or lower than they were in 2018?

• Lower

• Higher

• They are the same

What is "inflation risk"?

• The risk of rising prices causing lower buying power.

• The risk of lower prices causing higher buying power.

• The risk of personal loss such as embarrassment/guilt.

• When the stock market crashes and people get to buy stocks at a lower price.

What is the overall goal of advertising?