Econ Unit 2 Re-Test: Personal Finance

In economics, when discussing the factors of production, what is defined as: "all natural resources"

• Land

• Labor

• Capital

• Entrepreneur

In a market economy, the interaction of supply & demand determines what?

• Price

• Government intervention

• Barter systems

• Government Decrees

In terms of economics, which of these is defined as capital?

• A fridge for a bakery

• A new worker at a construction site

• The trees used at a lumber company

• Jeff Bezos

Which type of economy is being described here: "centralized decision making about what will be produced?"

• Command

• Traditional

• Mixed

• Market

What term is being described here: "while what people want is unlimited, resources are limited?"

• Scarcity

• Supply

• Demand

• Elasticity

Why do investors require higher returns for some investments?

• to compensate for less risk

• to invest less funds for less risk

• to compensate for greater risk

• to offset the amount of money invested

What is meant by the statement "money is a medium of exchange?"

• Money can be traded for goods and services.

• Money is a measure of a product's value.

• Money can be accumulated as a form of wealth.

• Money is a measure of societal status.

What might all people be able to do to BEST manage their money?

• avoid paying their bills

• put money in a savings account

• get a high-paying job

• create a personal budget

Which of these is the opportunity cost of going to work straight out of high school?

• the cost of housing and food

• the college degree you could've gotten

• the cost of utilities and bills

• the paycheck you earn at the end of the pay period

What does the acronym FAFSA mean?

• Free Application for Free Student Aid

• Free Application for Financial Student Aid

• Federal Application for Free Student Aid

• Free Application for Federal Student Aid