5th Grade Personal Finance Quiz

Which of the following scenarios demonstrates a good budgeting practice?

• Julie’s monthly income is less than his monthly expenses.

• Carly’s monthly taxes are equal to her monthly expenses.

• Rico spends less money each month than he earns at his job.

• Sam spends more money each month than he earns at his job.

Which element of a personal budget is the money that a person earns or receives?

• income

• savings

• expenses

• investments

Which part of a personal budget records the amount of money a person spends?

• salary

• income

• expenses

•   interest earned

Use the information to answer the question.

“I turned 16 this past November. I am getting a job at the shoe store at the mall.”-Pedro Garcia, High School Student

Which of the following BEST describes what Pedro can expect at his new job?

• The shoe store will receive taxes from Pedro, which the owners can use to purchase more shoes.

• The shoe store will receive income from Pedro, which will allow the owners to earn greater profits.

• Pedro will receive income in exchange for his labor, which he can use to purchase goods he wants.

• Pedro will receive income in exchange for his labor, which will allow him to quit and never have to work again.

Which of the following is an example of a price incentive?

• A gallon of milk only cost $1.50 ten years ago, but today it costs $2.25.

• An employer gives an employee a raise to reward her for her hard work.

• A stockbroker buys a share of stock and sells it later in order to make a profit.

• A store usually sells candy bars for $1.00, but today is selling them for $0.75.

Use the information to answer the question.

Coca Cola and Pepsi produce a similar product. How will competition between the two companies MOST LIKELY affect consumers?

• The companies will each try to raise the price of the product in order to drive up demand.

• The companies will each try to produce a better version of the product and sell it at a lower cost to consumers.

• The companies will each try to reduce production costs, lowering the quality of the product available to consumers.

• The companies will each try to make less of the product, which will result in increases in consumer demand and price.

Why is competition good for consumers?

• allows customers to buy goods and services on credit.

• encourages customers to save their money instead of spending it.

• guarantees that consumers can purchase anything they want at any time.

• encourages businesses to offer consumers low prices and quality products.

Tom has a Lemonade stand. What is MOST LIKELY to happen if Tom changes the price of a glass of lemonade from $2.00 to $1.00?

• Tom will lose all of his customers

• Tom will not make any money at all

• More people will buy lemonade from Tom

• Fewer people will buy lemonade from Tom

Which of the following would be BEST described by this list?

Hard Working

Risk Taker

Attitude of Success

• Banker

• Consumer

• Entrepreneur

• New Employee

A economy is one that gives choices about which goods and services a consumer may purchase.

• Simple

• Market

• Goods and Services

• Traditional