Unit 1 Review

Which part of a personal budget records the amount of money a person spends?

• Salary

• Income

• Expenses

• Interest Earned

What is a financial document that outlines a person's income and expenses?

• a loan application

• a savings account

• a personal budget

• a checking account

What is the meaning of the phrase “make ends meet”?

• To have enough money to pay expenses

• To have enough money to take out a loan

• To have enough money to earn an income

• To have enough money to make a budget

Which of the following is a goal of entrepreneurs?

• To make a profit

• To pay a lot of taxes

• To create bank services

• To take goods from households

What is the name given to those who take risks to start their own businesses?

• Budgeteers

• Entrepreneurs

• Business Teachers

• Household Owners

Which of the following is an example of the ABC Grocery Store using price incentives to gain customers?

• ABC Grocery Store used to sell a gallon of milk for only $1.50, but now it costs $2.25.

• ABC Grocery Store used to sell a special milk, but they no longer have it available in stores.

• ABC Grocery Store usually sells candy bars for $1.00, but today only is selling them for $0.75.

• ABC Grocery Store gave all of its employees a raise from $9.00 an hour to $12.00 an hour.

Why is competition good for consumers?

• Competition allows customers to buy goods and services on credit.

• Competition encourages customers to save their money instead of spending it.

• Competition guarantees that consumers can purchase anything they want at any time.

• Competition encourages businesses to offer consumers low prices and quality products.

What is one way that private businesses, households, and the government work together?

• Households sell their labor to both.

• Households can refuse to pay taxes to both.

• Households receive services from the government.

• Households only receive goods from private businesses.

Which sector of the U.S. economy produces the most public goods?

• banks

• households

• government

• private businesses

What is the main way that most households and private businesses support the government economically?

• They pay taxes to the government.

• They provide loans to the government.

• They perform services for the government.

• They purchase services from the government.