Unit 1 Quiz 1

The U.S. government debt in 2015 was about ___.

$14 trillion

Choose if the statement concerns Economic perspective or if it concerns Scarcity. 1. Scarcity 2. Economic perspective 3. Scarcity

1. A rise in the price of groceries results in consumers spending less on entertainment. 2. A woman reviews her budget, debt, and spending habits when considering whether to purchase a home. 3. Many parents are unable to find and purchase a popular toy at Christmastime.

Match the definitions with the terms. 1. unsecured debt 2. economic perspective 3. secured debt 4. scarcity

1. money owed that imposes a higher interest rate because repayment is not guaranteed 2. weighs the costs and benefits of each measure before making an economic decision 3. money owed that is guaranteed by the thing it is used to purchase 4. a problem created by unlimited wants and limited resources

The ___ is an organization that works to protect consumers.

Better Business Bureau

What country owns a large portion of U.S. debt?

China

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

What segment of U.S. society represents a challenge to the Social Security system?

baby boomer generation

Which portion of U.S. government spending took up the largest percentage of the 2016 budget?

healthcare

What aspect of government spending recently increased greatly in the spring of 2010?

healthcare spending

Which purchase requires good credit?

house

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

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

Which scenario best explains scarcity?

A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.

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.

Credit refers to ________________.

a consumer's record of going into and getting out of debt in a faithful and punctual way

Choosing between spending money on a new suit or a vacation is an example of ___.

opportunity cost

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