Econ Pre-Test

Which of the following is a principle of free enterprise?

• Government control of all businesses

• Private ownership of property

• Centralized economic planning

• Fixed prices set by the government

Which of the following best describes an entrepreneur?

• A person who works for a large corporation

• A person who starts and runs their own business

• A government official who regulates businesses

• A consumer who buys products

Which of the following is a benefit of creating a budget?

• Encourages impulsive spending

• Helps track income and expenses

• Increases financial uncertainty

• Reduces savings

In a free enterprise system, what motivates businesses to improve products and services?

• Government regulations

• Consumer demand and competition

• Fixed pricing

• Centralized planning

In a free enterprise system, who determines what goods and services are produced?

• The government

• Consumers and producers

• International organizations

• Central banks

What is the main goal of saving money?

• To increase debt

• To prepare for future financial needs

• To spend on non-essential items

• To avoid paying taxes

What is the first step in financial planning?

• Investing in stocks

• Setting financial goals

• Taking out a loan

• Spending money on luxury items

Which of the following is a characteristic of a successful entrepreneur?

• Risk aversion

• Inability to adapt to change

• Innovative thinking

• Dependence on others for decision-making

Which of the following is a key component of a budget?

• List of potential investments

• Record of past financial transactions

• Plan for future income and expenses

• Summary of economic theories

What is the purpose of an emergency fund in financial planning?

• To invest in high-risk stocks

• To cover unexpected expenses

• To pay for luxury vacations

• To lend money to friends