Econ FINAL review

A budget is

• an organized account administered by a bank.

• a plan for saving and spending.

• income received for services given.

• necessary to live a long and happy life.

In economics a need is

• something you absolutely have to have to

  survive.

• something that makes your life more comfortable

  but is not necessary for survival.

• not important when budgeting.

• something you can ignore

Which of the following is NOT a Fixed Expense?

• College Loan

• Food

• Cell Phone

• Rent

Which of the following is a want and not a need?

• Subway expenses

• Clothing

• Eating out/Entertainment

• Food

Which of the following is true about scarcity?

• Scarcity affects all societies.

• Scarcity exists only in poor countries.

• Scarce goods lead to lower prices.

• Scarcity of resources can be eliminated using

  sound economic policies.

To save money, Taylor decided not to go to a concert where her favorite musician was performing. What was the opportunity cost of that decision?

• having fun at the concert

• spending time at home

• having time to study

• having extra money

Which of the following causes a production possibilities frontier to shift to the right?

• The economy grows.

• The economy shrinks.

• The economy stagnates. (doesn't change)

• The economy destabilizes.

A point on a production possibilities frontier represents

• a point at which a nation is producing only one

  good or service.

• a point at which an economy is using all

  resources most productively.

• a point of economic growth.

• a point at which the economy is being

  underutilized.

What is the value of technological innovations?

• Innovations in land use increase the need for

  mechanical equipment.

• Innovations in agriculture eliminate the need for

  hand tools.

• Innovations in technology increase economic

  growth

• Innovations in education decrease

  unemployment.

Which of the following is a function of households in the market economy?

• They supply firms with the factors of production.

• They supply firms with goods and services.

• They send land, labor, and capital to firms

  through the product market.

• They send money to firms through the factor

  market.