MIDTERM REVIEW - ECONOMICS

What is a consumer in an economic context?

• a) An individual who sells goods and services
• b) An individual who purchases goods and services for personal use or consumption
• c) A business that provides goods and services to other businesses
• d) A government entity that regulates economic activity

What is identity theft?

• a) When someone steals your wallet or purse
• b) When someone uses your personal information without permission to commit fraud
• c) When you forget your login credentials for an online account
• d) When you share too much information on social media

In a bait and switch scheme, what happens when a customer visits a store to purchase an advertised item?

• a) The item is available at the advertised price, and the customer can purchase it without issue.
• b) The customer is offered a better product at a lower price than the advertised item.
• c) The advertised item is unavailable or has hidden costs, and the salesperson pressures the customer to buy a more expensive alternative.
• d) The customer is given the advertised item for free as a promotional offer.

What are the guiding principles that influence our choices and actions called?

• a) Goals
• b) Values
• c) Priorities
• d) Standards

What term refers to the limited nature of resources?

• a) Abundance
• b) Scarcity
• c) Opportunity cost
• d) Bartering

Effective time management helps individuals overcome which of the following?

• a) Scarcity
• b) Opportunity cost
• c) Procrastination
• d) Conspicuous consumption

What is the main benefit of resisting impulse purchases?

• a) Keeping up with the latest trends
• b) Making more rational choices
• c) Impressing others with material possessions
• d) Increasing social status

What is an essential step in making informed consumer decisions?

• a) Following popular trends
• b) Making purchases based on emotions
• c) Conducting research and comparing options
• d) Buying the most expensive products

Informed and responsible consumer decision-making contributes to:

• a) Increased personal debt
• b) A more sustainable and ethical marketplace
• c) Short-term financial gains
• d) Impulse purchasing habits

Which of the following is an example of a need?

• a) Exotic vacation
• b) Luxury items
• c) Healthcare
• d) Designer clothing