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

Fill in the Blank

The _ refers to the initial cost of the loan without interest.

Fill in the Blank

The fee charged by the lender in order for you to borrow money is referred to as _

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

Fill in the Blank

The economic concept of _ is the sum of those economic products that are tangible, scarce, useful, and transferable from one person to another.

Fill in the Blank

_ is the cost of the next best alternative use of money, time, or resources when one choice is made over another.

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

Fill in the Blank

_ is when people struggle economically because prices have gone up but their pay has not.

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