Economics Final Assessment Review #1

Economics is the study of how people make choices about ways to use _______________ resources to fulfill their unlimited wants and needs.

• Limited

• Unlimited

• Natural

• Man-made

A teacher gives extra credit if a student completes a test study guide... This is an example of ?

• Voluntary Exchange

• Freedom of Choice

• Positive Incentives

• Negative Incentives

The limited availability of resources is known as...

• Scarcity

• Voluntary Exchange

• Profit

• Opportunity Cost

A student must decide between going to the movies with friends or staying home and studying for a final exam. She chooses to stay home and study. Which economic concept describes going to the movies in this scenario?

• Comparative Advantage

• Equilibrium Point

• Income Effect

• Opportunity Cost

In this type of economy, the people decide the supply, demand, and price.  

• Market 
• Traditional
• Command 
• Mixed

Capitalism is in what type of economy?

• Traditional

• Command

• Market

• Authortarian

When customers and business owners exchange products and money, because it will help them both in some way.

• voluntary exchange

• volunteering to help someone for free

• opportunity cost

• reading quizzes

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• APR
• Finance company

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 

• Savings
• Profit
• Budgeting
• Credit

A plan of how much money is available and how it will be spent.

• budget
• profit
• inventory
• interest