Flashcards › PF 1.01 FLASHCARDS

Rick cannot afford to buy Christmas gifts for everyone in his family. This illustrates: the Law of Scarcity Susan is going to obtain a loan to buy a stereo system. This is an example of which economic activity? borrowing Which is an example of spending? Mary bought a pair of designer jeans on the Internet Amanda always wanted to become a nurse even though she knew that health care professionals do not generally make good salaries. Amanda's choice of occupation will directly influence her: standard of living Sharon paid for an unexpected trip to the emergency room instead of paying her car payment. This illustrates: an opportunity cost Tom borrowed $100 from a friend to buy items he needed for work with a retail value of $300. When he gets his next paycheck, he will have enough money to pay off the debt. This illustrates: wise use of credit to extend a person's buying power Nancy works in a restaurant where she receives tips. Receiving tips is an example of which economic activity? earning Which is an example of responsible earning? Dorothy decided to keep her part-time job until she could find another so she could continue to meet her monthly expenses Kim has always loved and understood dogs; now she has a part-time job dog-sitting in the neighborhood. This illustrates: using one's knowledge to increase earnings Jim decided to save his money for his senior expenses rather than spending it at the mall. This illustrates: making wise choices in light of trade-offs Which is an example of responsible borrowing? Ed accepted a loan from his uncle because he knew he could pay it back Fred put 5% of his earnings into an interest-bearing savings account each month. For Fred, this illustrates which benefit of saving? Can be used to earn additional income Which is an example of earning? Sam sold things he made at a flea market The Hayes family puts aside $50 every month for unexpected emergencies. When Mr. Hayes lost his job, the family was glad to have this money to pay bills until he could find a new job. This illustrates: forming the habit of saving regularly Which is an example of saving? Mary put money in a bank account PF 1.01 FLASHCARDS