Study Guide for Economics and Personal Finance

What is trade?

• focusing on one aspect of production

• —When producers and consumers voluntarily agree to sell their personal rights

• When businesses and government provide information on consumers

• —When producers and consumers voluntarily agree to provide one good or service in return for another.

Exchanging chips for hats is an economic example of

• Specialization

• Barter

• Scarcity

• Absolute Advantage

—Measure of value that allows producers and consumers to determine worth.

• Money

• Barter

• Trade

• Utility

What does utility in economics refer to

• giving up one product for another without sacrificing resources

• the study of making choices to satisfy their unlimited wants and needs

• trading one set of goods for another not using money

• advantage of fulfillment a person receives from consuming a good or service

Little Jon makes it a priority to attend every school day his senior year in order to pass his classes. In economics, he is responding to...

• mixed economies

• Traditional Costs

• Incentives

• Barter system

▫Economic activities are usually centered toward the family, tribe, or ethnic group

• Traditional Economies

• Command Economies

• Market Economies

• Mixed Economies

Government or other central authority makes all economic decisions

• Mixed Economies

• Traditional Economies

• Market Economies

• Command Economies

What is the primary function of money in an economy?

• Medium of exchange

• Store of value

• Unit of account

• All of the above

Which of the following is an example of a public good?

• National defense

• Private school

• Local grocery store

• Personal computer

What does GDP stand for in economics?

• Gross Domestic Product

• General Domestic Product

• Gross Development Product

• General Development Product