Unit 5 Economics

How did many people in the North try to improve their lives during the 1800's?

• They focused on agriculture and farming.

• They avoided education and preferred manual labor.

• They engaged in isolation and avoided social interactions.

• They moved to large cities and specialized in a trade.

An opportunity cost can BEST be described as________

• a trade-off.

• an expense.

• an investment.

• a tax.

What should Sam record in the Income section of his person budget?

• Utility bills
• a birthday gift of $20

• Grocery expenses
• Car payments

What are two requirements in a voluntary exchange?

• One person must have more resources than the other.

• The exchange must occur within a specific timeframe.
• Both people must be legally obligated to exchange.

• Both benefit and are honest about what they are trading.

How did trade help the United States during the American Revolution?

• Trade was primarily focused on luxury goods.
• The United States gained supplies and allies by trading with France.

• Trade only benefited Britain during the war.

The expenses section of a personal budget

• shows the amount of money that is spent each month.

• shows a promotion at work.

• says you buy anything they want at any time.

What geographic factor allowed the South to specialize in agriculture leading up to the Civil War?

• Urban industrialization and manufacturing.
• The South had better climate and soil that the North.

• Limited access to water sources.
• Rocky terrain and harsh winters.

How did the Transcontinental Railroad change the American West?

• It led to the decline of major cities in the West.
• It had no impact on the economy of the region.
• It was primarily built for military purposes.
• It made traveling and selling goods easier.

What is an example of income?

• earning $15 for mowing neighbor's lawn

• Paying someone back from the money you borrowed

• putting money in a piggy bank for future use

Reba hears rumors that gold has been discovered in California. She wants to go, but is worried that the journey will be too difficult for her children. She will also be moving far away from her friends. Reba decides not to move to the American West. What is Reba's opportunity cost?

• The cost of living in California.
• The time spent traveling to California.
• The difficulty of finding gold in California.
• The chance to become rich by finding gold.