Economics Final Exam Review

A spending plan is called a

• Budget

• Tax

• Income

• Party

The most highly valued opportunity or alternative forfeited when a choice is made

• Trade

• Specialization

• Interdependence

• Opportunity Cost

It is easy to go into debt. It is hard to get out of debt.

• True

• False

Who is this "Father of Communism"?

• Karl Marx

• Adam Smith

Which Fiscal Policy is the government likely to adopt during a contraction

• Easy Money

• Expansionary

• Tight Money

• Contractionary

Michael went to the Shoe Department last night and purchased a new pair of sandals for $35. Which function of money was exhibited here?

• Unit of Measurement

• Store of Value

• Medium of Exchange

• Barter

Not being able to have all of the goods and/or services that you want because people have endless wants, but goods and services aren't endless. So people are forced to make choices.

• Scarcity

• Trade

• Standard of Living

• Human Resources

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

Individuals go into debt when they get a loan or buy something on credit. This debt must be paid back plus

• debit

• credit

• investment

• interest

In the world today

• most economic systems have very little in common.

• all economic systems are either pure capitalism or pure command economies.

• all economic systems work about the same way.

• all economic systems have to make the basic economic decisions