Study Questions Section 1 Personal Finances

Section 1 Study Questions (9.0 points)
Answer each question fully. Complete sentences are not necessary.
Lesson 1 (3.0 points)
1. Name at least two things financial planning could help you do. (0.5 points)
Create a budget and Fund your education or the education of your children
2. What is trade? (0.5 points) the exchange of things of value.
3. What is a service? (0.5 points) something of value that a person can do for other people, such as babysitting, tutoring, or landscaping.
4. Name one of the three functions of money. (0.5 points) medium of exchange, store of value, and unit of account
5. The real estate market is categorized in which way? (0.5 points) by location, commodity, and consumer
6. What is a country’s GDP? (0.5 points) is the value of the goods and services produced in that country
Lesson 2 (3.0 points)
1. What is a market economy? (0.5 points) an economic system that is regulated by the interactions between producers and consumers in the market.
2. Name at least two features of capitalism. (1.0 points) profit motive, and competition
3. A business that sells watches that are more inexpensive than the watches a competitor sells is using which type of competition? (0.5 points)
Price competition
4. What is a monopoly? (0.5 points) when one company controls an entire area of goods or services, so that customers don't have other choices.
5. What is a motive? (0.5 points) a reason for doing something.
Lesson 3 (3.0 points)
1. What is land as a factor of production? (0.5 points)
A factor of production means not just the surface of the earth, but everything in the universe that wasn't created by people. This includes all natural resources, such as air, water, plants, sunlight, rocks, and minerals
2. What does the Law of Demand say? (0.5 points)
Says that if all other factors are equal, the demand will go down if the price