Unit 1: Personal Finance & Economics

In the marketplace, a consumer is someone who

• works at a job.

• provides a service.

• gets a loan from a bank.

• buys goods and services.

How does the government pay for services like fire departments and libraries?

• by collecting taxes

• by charging fees

• by taking donations

• by printing money

Riley gets a job delivering newspapers. Which of the following is an example of a human resource?

• Riley's bicycle

• the money Riley is paid

• Riley herself

• the newspapers Riley delivers

Stores are unable to stock enough bendable straws to meet their customers' demand. What will MOST LIKELY happen as a result?

• A. Demand for bendable straws will fall.

• B. Demand for bendable straws will disappear.

• C. More bendable straws will be produced.

• D. Fewer bendable straws will be produced.

How are goods and services usually allocated in the United States?

• by price

• by lottery

• by equal sharing

• by the government

What are capital resources?

• people who start businesses

• people who help to make goods

• things that can be found in nature

• things that are used to produce goods

Which of the following is TRUE about supply and demand?

• If demand is greater than supply, then prices are lower.

• If supply is greater than demand, then prices are lower.

• If supply is equal to the demand, then prices are higher.

• If supply is greater than demand, then prices are higher.

Johnny needs to study for his social studies test tomorrow. However, his friends have texted that they are meeting at the community pool to hang out. If Johnny goes with his friends, which of the following is an opportunity cost?

• Johnny’s friends will not support him

• Johnny’s score on his social studies test

• Johnny’s ability to improve on his swimming

• Johnny’s friends will give him a hard time for not joining them

Why are entrepreneurs called “risk-takers”?

• because they are guaranteed success at their new business

• because they get charged more taxes than other business owners

• because they could lose all of their money starting a new business

• because they combine land, labor, and capital to start a new business

Which of the following is an example of an entrepreneur?

• Frank started a business delivering food.

• Herby volunteered at his church last week.

• Matt baked cookies for his elderly neighbors.

• Arthur painted pictures of his friends for free.