Resources
Why are all goods and services scarce?
All resources are SCARCE!
What is one possible benefit of Social Security?
Retirement benefits
A monthly check that replaces a percentage of a worker's pre-retirement income. The percentage depends on earnings and when benefits start. For example, in 2025, the average monthly Social Security retirement benefit is estimated to be $1,976.
Disability benefits
Paid to disabled workers who meet medical and insured requirements. Benefits may be reduced if the recipient also receives certain public disability benefits.
Survivor benefits
A monthly payment that may be available to survivors of deceased workers. Survivors may also be eligible for Medicare based on the deceased family member's work history
Name something that would fall into the "wants" category of a budget. (multiple correct answers)
Dinner at a nice restaurant
The newest iPhone
A diamond ring
What kind of economic system does the United States have?
Mixed economy.
What is the #1 goal of most suppliers?
To make PROFIT!
The physical capital used by an artist to make paintings would include __________. (Give any example, doesn't have to be the specific one from the review sheet.
Paint
Brushes
Canvas
Easel
What could lead to a government “shut down?”
a. Government spending exceeds revenues before the end of the fiscal year.
b. The President vetoes Congress’ bill for a new law.
c. Congress and the President are unable to agree on a budget and one branch of government refuses to pass temporary spending measures.
d. Congress fails to override a presidential veto.
c. Congress and the President are unable to agree on a budget and one branch of government refuses to pass temporary spending measures.
Why do financial advisors recommend that you diversify your investment portfolio?
To reduce risk.
In economics, specialization is when an economy, company, or individual focuses on a limited range of goods or services to increase efficiency and gain a competitive advantage. Which of the following is an example of this?
a. Saudi Arabia: Economy based on oil production due to its vast oil reserves.
c. Saudi Arabia is a mixed economy with strong government controls.
b. The United States relies on imports from other countries for many goods and services.
d. The United States is a mixed economy, with some government intervention.
a. Saudi Arabia: Economy based on oil production due to its vast oil reserves.
What does supply and demand determine?
the price and the quantity produced of most goods.
Provide at least 3 examples of resources that economists consider land or a natural resource.
Water
Wood
Crops
iron ore
natural gas
fertile soil
water
The main source of funding for your school probably comes from
local property tax
Which section of a bank statement would show you how many times you have money taken out of your account?
a. Date
c. Deposits
b. Withdrawals
d. Ref.
b. Withdrawals
What is one of the most important advantages of a free market?
Promotes competition, innovation, and growth.
“When a good’s price is lower, people will buy more of it” is an example of:
a. A basic principle of the law of demand.
b. A basic principle of the law of supply.
a. A basic principle of the law of demand.
Human capital includes:
a. the salary paid to a teacher.
b. a bus driver’s knowledge of the city streets.
c. the machinery used to produce cars.
d. the equipment used by a doctor to perform surgery.
b. a bus driver’s knowledge of the city streets.
The United States is making its yearly fiscal budget. Congress must make a decision between increasing spending for the military or education. This kind of decision is a __________.
Guns or Butter issue.
Name one reason that would cause you to have a low credit score.
Not paying bills on time.
Opening too many lines of credit in a short amount of time.
Going over your credit card limit.
Why does a free market economy need government intervention?
To prevent unfair business practices like monopolies or oligopolies.
To provide the public with goods that the market wouldn't naturally produce.
To provide equal access to specific goods.
Define equilibrium in terms of supply and demand.
Equilibrium occurs when supply and demand balance each other out.
Any resources that are made by humans and used to create other goods and services are called __________.
Capital
When you drive away from the gas pump, you have just paid an:
Excise Tax
When looking at a paycheck, what are your net earnings?
the amount of money employees actually take home after all payroll deductions such as taxes and retirement.
Describe a traditional economy.
Economic questions are answered by habits and customs (the way it has always been done)
Children work the same jobs parents worked, often farming or hunter/gatherer
Fear Change!
Example: The Amish
Which of the following is the best example of the law of supply?
a. A sandwich shop increases the number of sandwiches they supply every day when the price is increased.
b. A food producer increases the number of acres of wheat he grows to supply a milling company.
c. A catering company buys a new dishwasher to make their work easier.
d. A milling company builds a new factory to process flour to export.
a. A sandwich shop increases the number of sandwiches they supply every day when the price is increased.