Quiz 1 Unit 1

Which of the following scenarios is NOT based on economic perspective?

A young man bought an old car without giving much thought to the costs associated with needing to fix the vehicle.

In 1962, President John F. Kennedy made a speech where 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

The things you miss out on when you decide to spend your money on something else refers to _______.

opportunity cost

Which of the following scenarios best explains scarcity?

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

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 country's collapse greatly altered U.S. military spending?

Russia

Which of the following are major economic issues that affect our lives today? Select all that apply.

Social security Healthcare Government regulation Unemployment Military spending

Credit refers to ________________.

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

What segment of U.S. society represents a threat to the social security system?

baby boom generation

Consumers have the biggest responsibility to _____________.

educate themselves about the products they are interested in, including the benefits and potential costs or problems

What is the purpose of interest?

for the lender to make money in exchange for giving money to those who need it

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

healthcare spending

To purchase a ____________, one must have good credit.

house

What portion of U.S. spending made up the largest percentage of the 2010 budget?

military spending

When a shopper makes a rational choice, he or she ______________.

picks the item that represents the greatest