Economics Final Exam Review

Economics Final Exam Review

Spring 2021

Multiple Choice

One of the benefits of the U.S. free enterprise system is the

• amount of choices for consumers

• guaranteed returns on investments

• lack of union participation by workers

• equal distribution of goods and services

Multiple Select

One result of competition in a free enterprise system is

• fewer consumer choices

• lower prices for products

• steady wages and incomes

• improved safety conditions

Multiple Select

You have to start paying student loans as soon as you graduate from college

• True

• False

Multiple Select

Student loans allow people without financial means to attend college.

• True

• False

Multiple Select

You must always accept the full loan amount offered to you for college?

• True

• False

Multiple Select

According to Mrs. Bustillos, all types of loans, especially student loans, are the devil.

• True

• False

Multiple Select

What options are available for people to pay for college?

• scholarships

• student loans

• parents

• working while in school

Multiple Choice

What would be a long-term benefit of going to college?

• earning more money over your lifetime.

• having good memories

• having volunteer experience to list on your resume

• getting to party a lot

Multiple Choice

What should factor into your decision to go to college?

• How much of a party atmosphere a school offers.

• Whether your friends go to college.

• Are you going to have to take out a loan to pay for it.

• Whether your parents went to college or not.

Multiple Select

When renting a home the cost of maintenance is

• the responsibility of the landlord

• covered by renters insurance

• cheaper

• refunded with the deposit

Multiple Choice

What would be considered a benefit of owning a home?

• purchasing insurance

• paying property taxes

• funding large capital outlays

• building equity

Multiple Select

What's the best way to improve your credit score?

• pay off all your debts

• consolidate credit card balances

• check your credit reports on a regular basis

• keep your balances as high as possible

Multiple Choice

What is true about the U.S. economic system?

• Government controls prices

• Nationalization of energy companies

• Markets that respond to consumer demand

• Public ownership of the factors of production

Multiple Choice

If you have to get a loan for college, the best one is a

• Unsubsidized

• Pell Grant

• Subsidized

• Work Study

Multiple Select

With a subsidized loan

• you never have to pay it back.

• your parents are responsible for repaying it.

• you get more money back.

• the interest is paid while you are attending college.

Multiple Select

What are the three basic economic questions everyone must answer?

• WHEN to produce

• WHAT to produce

• WHERE to produce

• HOW to produce

• HOW MUCH to produce

Multiple Choice

The fundamental problem in economics is

• opportunity cost

• scarcity

• TINSTAAFL

• entrepreneurship

Multiple Choice

Which is NOT one of the three questions you should ask yourself before buying something?

• Do I want it?

• Can I afford it?

• How will I pay for it?

• What will the consequences of my purchase be?

Multiple Choice

What factors can land someone in foreclosure?

• losing your job

• out of control debt

• divorce

• All of these

Multiple Choice

If the price of a perfume goes up by $10 what will the impact be on quantity demanded and supplied?

• Supply will stay the same, demand will increase

• Supply will decrease, demand will increase

• supply will increase, and demand will decrease

• supply will increase, demand will stay the same