Economics and Financial Literacy Quiz Gr 9

What is the main characteristic of a capitalist economic system?

• Government control of all industries

• Private ownership of businesses

• Equal distribution of resources

• Centralized planning by the government

In a socialist economy, who primarily owns the resources?

• Individuals

• The government

• Corporations

• Foreign investors

Which of the following is an example of a primary sector activity?

• Teaching

• Banking

• Farming

• Manufacturing

What is the main function of the tertiary sector?

• Extract raw materials

• Provide services

• Manufacture goods

• Develop technology

What is the term for a government's plan for revenue and spending over a year?

• Trade policy

• Budget

• Tax plan

• Investment strategy

What is the first step in creating a personal budget?

• List fixed expenses

• List variable expenses

• Calculate income

• Apply for credit

Which of the following is an example of a fixed expense?

• Groceries

• Rent

• Entertainment

• Electricity

A company's total assets minus its liabilities equals its:

• Income

• Owner's equity

• Expenses

• Profit

Which financial statement shows a business's income and expenses over a specific period?

• Balance sheet

• Cash flow statement

• Income statement

• Budget

What is the purpose of saving money in a bank account?

• To spend it quickly

• To earn interest

• To take out loans

• To avoid paying taxes