U3 Economics F&C

Which is an example of a need?

• clothing

• plane ticket

• cell phone

• restaurant

How does a good differ from a service?

• Unlike a service, a good is necessary for survival.

• Unlike a service, a good is produced to meet demand.

• Unlike a service, a good is something tangible.

• Unlike a service, a good is usually expensive.

Which is an example of a capital resource?

• employees

• tools

• seeds

• minerals

What is one reason a government may choose to import a good?

• to reduce scarcity

• to create a surplus

• to increase demand

• to raise prices

Omari chooses to rent a canoe for ten dollars and paddle on the lake for three hours instead of doing his homework. What might be Omari’s opportunity cost?

• the canoe rental fee he paid

• the time he did not spend on homework

• the time he spent paddling

• the bad grade he did not receive

How do discounts influence economic choices?

• Discounts motivate consumers to make a purchase.

• Discounts discourage producers from making too much of a good.

• Discounts increase competition between producers in a market.

• Discounts decrease demand for a good.

Why is the demand for foods such as bread and milk considered inelastic?

• These goods are subject to the price equilibrium.

• Their supply is consistent relative to other products.

• Their prices only fluctuate at certain times of the year.

• They are basic necessities that are difficult to go without.

Which means of exchange is common in traditional economies?

• money

• credit

• bartering

• currency

What is one benefit of money as a means of exchange?

• It has an unstable value.

• It is widely accepted.

• It accrues interest.

• It affects market value.

When are people more willing to spend money on things they want?

• when government intervention is high

• when market values are high

• when unemployment is high

• when confidence in the economy is high