Fin. Lit. Study Guide

Why is the study of economics considered important?

• It only affects government policies

• It influences only personal financial choices

• It impacts daily decisions, such as work, food, and living choices

• It is not relevant to international relations

What is the simple definition of economics?

• The study of financial markets and investments

• The study of how resources are used to meet human needs and wants

• The study of government regulations and policies

• The study of international trade only

According to the content, economics is like a game and we are all players. Most of us are players for what team?

• Consumers

• Producers

• The Eagles

• Farmers

How exactly is economics similar to a game, according to the content?

• It involves players, rules, properties, and outcomes

• It has no specific rules or outcomes

• It only involves buying and selling goods

• It has no players involved

What is the definition of a "good" in economics?

• Anything that can be sold in a store

• An object that fulfills someone's need or want

• A service provided to the public

• A rule in the game of economics

What is the definition of a "service" in economics?

• An object that fulfills a need or want

• An action or assistance that customers need or want

• A physical product sold to customers

• A rule that guides economic decisions

What does the term "allocation" refer to in economics?

• The process of finding and setting aside resources for production

• The method of distributing goods to consumers

• The way goods are priced in the market

• The process of selling resources to other countries

What does macroeconomics focus on?

• The economic decisions of individuals and companies

• Big trends in national, regional, and global economies

• The production of goods and services

• The allocation of resources for production

What does microeconomics focus on?

• The economic decisions of individuals and companies

• Large-scale economic trends across countries

• The relationship between global trade and economics

• The regulation of international markets

True or False: "Micro" means small, and "macro" means large.

• True

• False