Econ Unit 1 Quiz 1
Which decision is NOT one made with an economic perspective?
A young man buys an old car without thinking about the costs associated with fixing the vehicle, and the fact that it will probably only last for months.
The ___ is an organization that works to protect consumers.
Better Business Bureau
Which government agency deals most directly with consumers and their rights and protection?
Federal Trade Commission
What is the purpose of interest?
It allows the lender to make money in exchange for giving money to those who need it.
Which country's collapse greatly altered U.S. military spending?
Russia
A rise in the price of groceries results in consumers spending less on entertainment.
Scarcity
Many parents are unable to find and purchase a popular toy at Christmastime.
Scarcity
weighs the costs and benefits of each measure before making an economic decision
economic perspective
Which of these represents things you miss out on when you decide to spend your money on something else?
opportunity cost
When a shopper makes a rational choice, he or she ___.
picks the item that represents the greatest value
a problem created by unlimited wants and limited resources
scarcity
Which scenario best explains scarcity?
A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.
What country owns a large portion of U.S. debt?
China
Which portion of U.S. government spending took up the largest percentage of the 2016 budget?
healthcare
Which purchase requires good credit?
house
What is the biggest responsibility that consumers have?
to educate themselves on the products they are interested in, including their benefits and potential costs or problems
A woman reviews her budget, debt, and spending habits when considering whether to purchase a home.
Economic perspective
What segment of U.S. society represents a challenge to the Social Security system?
baby boomer generation
What aspect of government spending recently increased greatly in the spring of 2010?
healthcare spending
Credit refers to ________________.
a consumer's record of going into and getting out of debt in a faithful and punctual way
money owed that imposes a higher interest rate because repayment is not guaranteed
unsecured debt
Choosing between spending money on a new suit or a vacation is an example of ___.
opportunity cost
In 1962, President John F. Kennedy made a speech in which he spelled out the rights that a consumer has when purchasing something. Which one of these rights was NOT included in Mr. Kennedy's speech?
right to redress
money owed that is guaranteed by the thing it is used to purchase
secured debt
The U.S. government debt in 2015 was about ___.
$14 trillion
