Econ review so far

What is a Savings Account?

• Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

• Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

• You own part of a company. You may earn a dividend where you get part of the company's prot. You want to buy this when the price is low and sell when it's high.

• Where you can deposit your money into a bank for a specied amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

A producer wants to....

• supply goods while charging the lowest price

• buy goods while paying the lowest price

• supply goods while charging the highest price

• buy goods while paying the highest price

When a good is scarce, it means that ______.

• nobody is interested in buying it

• it is cheap and easy to make

• demand drops while supplies rise

• it is hard to find and likely to cost more

What you give up when you choose one thing over another is called ______.

• Capital

• Demand

• Opportunity Cost

• Supply

In which of the following economic systems do individuals make all the choices about what to make, buy, and sell?

• Command economy

• Traditional economy

• Market economy

• Mixed economy

In which type of economic system do people choose what goods to make based on custom?

• Command economy

• Mixed economy

• Market economy

• Traditional economy

When inflation happens, ______.

• The prices of goods go down

• The value of money goes up

• The prices of goods go up

• The cost of living decreases

During a period of recession, ______.

• the economy grows and shrinks over time

• the economy slows or shrinks

• the economy grows very quickly

• the economy does not change

The 4 Factors of Production (FOP) are

• rent for land, wages for labor, profit for capital, interest for entrepreneurship

• land, labor, capital, entrepreneurship

• land, labor, physical capital, financial capital

• land, labor, resources, profits

People who buy goods and services?

• Scarcity

• Monopoly

• Profit

• Consumers