Economics Final Assessment Review #2

One way to increase your creditworthiness is to do what?

• Pay the minimum on your credit cards

• Have more than two credit cards

• Paying for everything with cash

• Paying off your credit balance every month

What is credit?

• Free money
• Borrowed money
• Standard of living
• A term that causes tears

The cost of borrowing money is referred to as 

• Interest 
• Annual Percentage Rate 
• Credit 
• Credit Line 

The amount you pay to use someone else's money is also called --------- and is a percentage of the principal

• Cash flow
• Interest
• APR
• Debt

Disadvantages of credit are...

• credit costs money

• the temptation is to buy more than you can afford

• if you fail to repay the credit you use, you will lose your good credit and lenders will stop giving you credit

• you may also lose some of your income and property, which may be taken from you in order to repay your debts.

the smallest amount you can pay and remain a borrower in good standing

• expected payment

• minimum monthly payment

• interest

• finance charges

Bankruptcy _______.

• May cause the loss of car, house, and furniture

• is the first step to take when a person has financial troubles

• is a free court process for consumers

• clears from a credit record after one year

In which market structure is there the LEAST competition?

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

When a major car company lowers its prices, other car makers will probably 

• maintain existing prices.
• raise their prices.
• go out of business.
• lower their prices.

A consumer would be best defined as...

• A person who purchases goods and services for personal use

• A business that consumes other businesses

• A business or person who creates a product to sell

• A person who purchases goods in order to resell them.