Final Review

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

When prices rise, supply levels will also increase. If prices drop, supply will also fall.

• law of supply

• law of demand

• determinant of supply

• cost of production

The GDP, CPI, unemployment rate, and business cycle are important economic indicators.

• True

• False

The Federal Reserve (The Fed) uses which policy to stabilize the economy?

• Fiscal policy

• Monetary policy

• Tight Money

• Easy Money

Tisha purchased a new TV and put it on her credit card to pay off over 12 months. This is an example of buying something on...

• taxes

• debit

• credit

Angel has a $15 budget to go to the movies this month. If she buys her ticket for $10 and a drink for $5, will she have enough money for M&M's which is $5.

• Yes, she can purchase M&M's.

• No, she will be over budget.

What is a budget based on?

• Stock Market

• The Fed

• Income and expenses

When a bank offers a loan for a car or house, they are offering you...

• Savings to put away

• Money for your checking account

• A line of credit to be paid back over time