Chapter 3 Review

Benjamin, David, and Mason are discussing the concept of a free market in an economy. According to this concept, what does it mean?

• It means that people like Benjamin, David, and Mason are free to buy, sell, and produce whatever they want

• It means that people like Benjamin, David, and Mason are restricted from buying and selling goods

• It means that the government decides what Benjamin, David, and Mason should produce and consume

• It means that only certain businesses are allowed to produce goods for people like Benjamin, David, and Mason

Michael started a small business selling handmade crafts. After paying for materials, rent, and other expenses, what does the term 'profit' refer to in his business?

• Money before Michael pays for his business expenses

• Money after Michael pays for his business expenses

• Money Michael uses for his personal budget

• Money Michael borrowed from the bank

Ethan, Aria, and Rohan are discussing their personal finances. Rohan asks, 'What is the main purpose of a personal budget?'

• To save money for future expenses like Ethan's plan to buy a new car

• To pay off debts like Aria's student loans

• To invest in the stock market like Rohan's interest in buying shares

• To plan for spending income on daily expenses like groceries, rent, and utilities

Oliver, Mason, and Noah live in a village that follows a traditional economy. On what basis do they make their economic decisions?

• Based on what the stock market indicates

• Based on what the consumers in their village demand

• Based on what the village government decides

• Based on what has been done in the past in their village

Aria, Mason, and Emma are at a restaurant. Mason wants to pay for the meal. He pulls out a debit card. What is the function of Mason's debit card in this scenario?

• To invest in the stock market

• To pay off debts

• To borrow money from the bank

• To easily access money from his checking account

What does the term 'profit' refer to in a business?

• Money before business expenses are paid

• Money after business expenses are paid

• Money used for personal budget

• Money borrowed from the bank

What is the main purpose of a personal budget?

• To save money for future expenses

• To pay off debts

• To invest in the stock market

• To plan for spending income on daily expenses

What is a free market in an economy?

• People are free to buy, sell, and produce whatever they want

• People are restricted from buying and selling goods

• The government decides what to produce and consume

• It's a mix of all different types of economies.

In a traditional economy, what is the basis for economic decisions?

• What the stock market indicates

• What the consumers demand

• What the government decides

• What has been done in the past

What is the function of a debit card?

• To invest in the stock market

• To pay off debts

• To borrow money from the bank

• To easily access money from a checking account