Econ Final Study Guide

Scarcity forces tradeoffs. Which of the following is a real life example of this principle?

• A student chooses to study for an exam instead of going to a party because there is not enough time for both.

• A person receives unlimited free food at a buffet.

• A company produces more goods than it can sell, leading to excess inventory.

• A country has unlimited resources to satisfy all its citizens' wants.

Which of the following is a real life example of Cost vs. Benefits Analysis?

• Deciding whether to buy a new phone by comparing its features and price to your budget.

• Memorizing a list of vocabulary words for a test.

• Reading a novel for entertainment.

• Drawing a picture for an art class.

Which of the following is a real life example of the principle of economics: Thinking at the Margin?

• A student deciding to study one more hour instead of watching TV.

• A person buying groceries for the whole week at once.

• A company setting long-term goals for the next five years.

• A family planning a vacation for next year.

Which of the following is a real life example of the principle of economics: Incentives matter?

• A company offers bonuses to employees who meet their sales targets.

• People need food and water to survive.

• The sun rises in the east every day.

• Gravity pulls objects toward the ground.

Trade makes people better off. Which of the following is a real life example of this principle?

• A farmer sells vegetables to a city market and buys clothes from the city.

• A person grows all their own food and makes their own clothes.

• A country refuses to trade with others and only uses its own resources.

• A student studies alone without sharing notes with classmates.

Markets coordinate trade. Which of the following is a real life example of this principle?

• A farmer sells vegetables at a local market to customers.

• A person studies for an exam at home.

• A student reads a book in the library.

• A family goes on a vacation.

Future consequences count. Which of the following is a real life example of this principle of economics?

• Saving money for retirement to ensure financial security later in life.

• Spending all your money as soon as you earn it.

• Ignoring the impact of pollution on future generations.

• Making decisions without considering long-term effects.

A credit score is used for:

• Determining eligibility for loans and credit cards

• Calculating income tax

• Measuring physical fitness

• Assessing job performance

A person can increase their credit score by:

• Paying bills on time

• Maxing out credit cards

• Missing loan payments

• Applying for multiple new credit cards at once

The difference between a short term financial goal and a long term financial goal is:

• Short term goals are achieved quickly, while long term goals take several years to achieve.

• Short term goals require more money than long term goals.

• Long term goals are always less important than short term goals.

• There is no difference between short term and long term financial goals.