Question 1

_____ is money a bank pays you for keeping your money in the bank.

Accepted Answer

interest

Answer

opportunity cost

Answer

advertising

Answer

scarcity

Question 2

What is the value of the item you didn't buy?

Accepted Answer

opportunity cost

Answer

interest

Answer

advertising

Answer

incentive

Question 3

What is the use of public notices to bring attention to a product or service?

Accepted Answer

advertising

Answer

incentive

Answer

interest

Answer

scarcity

Question 4

____ are things that encourage us to take action.

Accepted Answer

Incentives

Answer

Opportunity Cost

Answer

Interest

Answer

Scarcity

Question 5

_____ is the amount of a resource is limited.

Accepted Answer

Scarcity

Answer

Incentive

Answer

Advertising

Answer

Opportunity Cost

Question 6

Which statement expresses the meaning of scarcity?

Accepted Answer

The amount of something you want or need may be limited.

Answer

When you buy something, you give up the value of something else.

Answer

Businesses try to get you to buy something by putting a product on sale.

Answer

Working at a job like babysitting can earn you money.

Question 7

Which is an example of a negative incentive?

Accepted Answer

The cost of an airplane ticket goes up the longer you wait to book it.

Answer

A smartphone store is running a "buy-one-get-one-free" offer.

Answer

A famous athlete appears on a commercial for running shoes.

Answer

A frozen yogurt shop opens up next door to a school.

Question 8

Which is an example of an economic decision?

Accepted Answer

purchasing a certain cereal over another

Answer

seeing an advertisement

Answer

helping a farmer plant or pick crops

Answer

wanting to cheer for your favorite team at a game

Question 9

Why do banks offer interest to their customers?

Accepted Answer

Interest is a positive incentive for customers to keep their money at that bank.

Answer

Banks use the interest customers earn and loan it to the Federal Reserve in exchange for profits.

Answer

Customers who earn interest are more likely to buy stocks in companies that the banks own.

Answer

As interest is subtracted from customers' bank accounts, the Federal Reserve replaces it at a higher rate.

Question 10

Going to college is an economic incentive for some people because a college education can __________.

Accepted Answer

result in skills that are required for higher-paying jobs.

Answer

be required to get a high-interest bank loan.

Answer

lead to fewer opportunity costs.

Answer

help people make more important economic choices.

Question 11

Which of the following are examples of incentives?

Question 12

Water and money can both be scarce.

Accepted Answer

true

Answer

false

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