Economics and Personal Finance Final Spring 2023 Review

What is the best explanation of why there will always be scarcity is because

• people and their tools are inefficient.
• natural disasters create frequent shortages.
• governments create scarcity to keep people wanting more.
• people have unlimited needs and wants but resources are limited.

Scarcity of fresh vegetables during the winter months can cause what kind of production problem?

• People stop eating so much and lose weight.
• Vegans and vegetarians do not have anything to eat and often starve.
• Higher food costs for items that require fresh vegetables.
• More choices of canned and frozen vegetables in the grocery stores.

What is the name for the economic condition that exists when people want more things than there are things to buy?

• Capital
• Scarcity
• Equilibrium price
• Entrepreneurship

One advantage of a market economy is its ability to

• limit consumer choices.
• sell goods at a high price.
• adjust to changes over time.
• control the price of labor.

In a market economy, prices are established by

• consumers and labor unions.
• the interaction of supply and demand.
• decree of government agencies.
• businesses which buy and sell the products.

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions.
• Central government planning decides what will be produced.
• Consumers decide through their behavior in the marketplace.
• Supply and demand control production and price

What do we call the amount left over from your paycheck after taxes and deductions?

• balance
• transaction
• gross balance
• net pay

A plan for spending

• income
• sales tax
• expenses
• budget

Which is an example of a variable expense?

• car payment
• electricity bill
• mortgage
• student loan

Which is an example of a fixed expense?

• electric bill
• food/groceries
• car loan
• gas in a vehicle