Economics Final Review

If you choose to go out for pizza, you forgo the opportunity to get Chick fil A, McDonalds, or Carrabba's. These other options are called...

• trade offs

• opportunity cost.

• incentives.

• scarce resources.

What is it called when you weigh the pro's and con's when making a decision

• incentives

• thinking at the margin

• trade offs

• cost-benefit analysis

According to Dave Ramsey, when purchasing a home, how much of your monthly take home pay should you spend on your monthly mortgage?

• 10%

• 25%

• 40%

• 50%

According to Dave Ramsey, how much should you put down in cash for a down payment on a home?

• 3-5% of the total cost of the home

• 5-10% of the total cost of the home

• 10-20% of the total cost of the home

• 20-30% of the total cost of the home

What is an example of a good.

• Tutoring a 5th grader

• the plumber fixing your sink

• A new set of dishes

• The waitress serving your food.

Why must people make tradeoffs?

• Because of scarcity

• Because of incentives

• Because of the factors of production

Which type of economy is known for using the barter system?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

Which type of economy has no government interference at all?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

Which type of economy has is the complete opposite of Market Economy?

• Command Economy

• Mixed Economy

• Traditional Economy

What is toilet paper all over the floor of the bathroom an example of?

• Scarcity

• Tradeoffs

• Tragedy of the Commons

• Inferior Goods