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Spending, Saving, and Investing.

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Why is consumer spending important to the economy?

a)

It helps determine spending habits

b)

It lets us know who is making economic decisions

c)

both A and C

d)

None of the above

2.

Bill bought his dad a tie from Macy's. In this example, who is the consumer?

a)

the clerk

b)

Bill's dad

c)

Bill

d)

the owner of the store

3.

at the end of the school day, mike went to the store and bought some ice cream, took the bus home, and called his girlfriend michelle. Which of the items that bob used is a good?

a)

Education

b)

the bus ride

c)

his cell phone call

d)

ice cream

4.

in some ways, all consumers are alike. This is because all consumers...

a)

have similar tastes and wants

b)

share the same religious views

c)

are of the same age

d)

buy to satisfy their needs

5.

which of the following is likely to DECREASE when consumer spending increases?

a)

prices

b)

business activity

c)

unemployment

d)

production

6.

which of the following is the most important factor in determining how much a consumer will spend?

a)

age

b)

size of income

c)

religion

d)

marital status

7.

buying which of the following is an example of conspicuous consumption?

a)

school supplies

b)

lunch

c)

tickets to a dance

d)

expensive clothes or car

8.

under which circumstances would you be most likely to buy an item that you want now, rather than wait for a later time? You expect that soon...

a)

prices will rise

b)

prices will fall

c)

you will lose your job

d)

a better product will be coming on the market

9.

what is most likely to happen to the pattern of consumer spending as a family income increases?

a)

spending on necessities decreases

b)

the proportion of family income spend on necessities increases

c)

the proportion of the family income spent on luxuries increases

d)

spending for luxuries decreases

10.

which of the following purchases most of the nations output of goods and services?

a)

business firms

b)

consumers

c)

state and local governments

d)

the federal government