Personal Finance 23-24

Who makes up a household in our market economy?

• People

• Government

• Businesses

• Banks

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.

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

• 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 will allow him to quit and never have to work again.

What is the relationship between households and private businesses in the US economy?

• Households pay taxes to businesses in exchange for the goods and services that businesses produce.

• Households sell labor to businesses in exchange for income. They use income to buy goods and services from businesses.

• Businesses pay taxes to households in exchange for the goods and services that the households produce.

• Businesses sell labor to households in exchange for income. They use income to buy goods and services from households.

Use the information to answer the question.

Your money will be safe.

Your money can earn interest.

You are less likely to spend your money.

Which of the following is the BEST title for the list?

• Benefits of Taxes

• Benefits of Debit Cards

• Benefits of Bank Loans

• Benefits of Savings Accounts

Which one of the following examples is a public service provided by the government in the United States?

• electricity service

• building and fixing roads

• providing weekly lawn care

• selling books in a bookstore

Why do cities use tax dollars to fund services such as garbage removal?

• because the services are necessary for a healthy city

• because public taxes are limitless and must be used correctly

• because private companies refuse to throw out their garbage

• because the services take jobs away from people in the community

Use the information to answer the question.

Coca Cola and Pepsi produce a similar product. How could 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 reduce production costs, lowering the quality of the product available to consumers.

• 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 make less of the product, which will result in increases in consumer demand and price.

What is the name given to those who take risks to start their own businesses?

• Budgeteers

• Business Teachers

• Entrepreneurs

• Household Owners

What should a person make sure to balance when creating a personal budget?

• play and work time

• spending and saving

• purchasing and spending

• competition and entrepreneurship

Use the information to answer the question.

Jamaal has a personal budget to keep up with his money. He realizes that he is out of pencils for school. He goes to the store to buy pencils but wants to make a wise spending decision that is within his budget.

Which of the following decisions is Jamaal MOST LIKELY to make?

• He will buy a pack of pens if they cost less than a pack of pencils.

• He will buy the most expensive pencils available as long as they are on sale.

• He will buy one pencil for $5.00 rather than a less expensive pack of five pencils.

• He will buy a pack of pencils that costs $2.00 rather than one that costs $3.00.