Economics Final Exam Practice 12R

What is the recommended strategy for managing credit card debt?

• Paying only the minimum payment each month

• Ignoring the debt until it goes away

• Paying off the balance in full each month

• Transferring the debt to another credit card

Scarcity exists because human beings have

• limited resources with which to satisfy unlimited needs and wants

• a long tradition of competing for natural resources

• imperfect methods of refining raw materials and creating capital

• always consumed all natural resources faster than they could replenish them

Food, shelter, and clothing constitutes people's

• capital

• resources

• needs

• services

The "Father of Capitalism" is

• Thomas Jefferson

• Karl Marx

• Adam Levine

• Adam Smith

An economy where decisions of what to buy are based solely on an individuals choice is known as

• Command

• Traditional

• Market

• Mixed

All of the following are economic goals of the United States EXCEPT

• Economic Freedom

• Economic Equity

• Economic Growth

• Economic Stagnation

An installment debt is when

• consumers pay back the debt all at once

• consumers receive the borrowed money in equal monthly in

• consumers pay back the loan in quarterly payments

• consumers pay back the loan over an extended period of time with equal payments every month

Equilibrium occurs in a market when

• the price is such that supply equals demand

• both supply and demand are perfectly inelastic

• there is both a surplus and a shortage

• the market is unable to "clear itself"

What is a credit limit?

• The maximum amount of money you can borrow on a credit card

• The minimum monthly payment on a credit card

• The amount of money owed on a loan

• The number of credit cards you own

The largest installment debt in the United States is the money people owe

• on home mortgages

• on cars

• on appliances

• on clothes