CONSUMER EDUCATION – UNIT 1: ECONOMIC FOUNDATIONS
1. The goal of all businesses is to:
2. In order to make a profit _________ must be higher than ________.
3. What are the 3 Factors of Production? What are the 3 resources associated with them?
4. What is the “Basic Economic Problem?”
-why?
5. Explain the difference between a good and service:
6. What is the difference between a need and a want? Give an example of each.
-is there a product that can be both a need and a want?
6. Define Opportunity Cost:
Provide two examples:
7. What are the three key Economic Questions
8. What are the three economic systems and explain each:
9. What type of economy does the US have? Give examples to show this.
10. Economic Measurements (explain each)
-GDP
-CPI
-Unemployment
-Stock Market
11. What are the 4 stages of the Business cycle? (explain each and draw here)
12. Explain what happened to interest rates over the last 10 years and the result of such changes.
-are current rates high or low?
-who is in charge of raising/lowering rates?
13. Define inflation and deflation
-give an example of an item that has inflated and one that deflated:
14. Define appreciation and deprecation.
-give an example of an item that typically appreciates and one that depreciates:
15. Supply & Demand
-When prices rise, quantity demanded usually ________.
-When prices are decreased, quantity demanded usually ________.
-When prices are going up, quantity supplied __________.
-When supply equals demand it is known as the __________.
-Draw a supply & demand chart below. Label: price, quantity, supply, demand and equilibrium point.
16. Explain the concept of diminishing margin of utlity