Economics and Finance Quiz

What is the basic economic problem that arises because resources are limited?

• Inflation

• Scarcity

• Opportunity Cost

• Demand

Which of the following is a simple procedure to calculate the total savings after one year if you save $100 per month?

What is a credit score primarily used for?

• Determining your income

• Assessing your creditworthiness

• Calculating your taxes

• Estimating your monthly expenses

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

• Groceries

• Rent

• Entertainment

• Clothing

If the demand for a product increases and the supply remains unchanged, what is likely to happen to the price of the product?

• The price will decrease

• The price will increase

• The price will remain the same

• The price will fluctuate randomly

Which of the following is a type of investment that represents ownership in a company?

• Bonds

• Stocks

• Savings Account

• Certificate of Deposit

Calculate the simple interest earned on a $1,000 investment at an annual interest rate of 5% over 3 years.

• $150

• $50

• $200

• $300

What is the term for the cost of the next best alternative that is foregone when a decision is made?

• Sunk Cost

• Opportunity Cost

• Fixed Cost

• Variable Cost

Which of the following is a strategy to improve your credit score?

• Max out your credit cards

• Pay bills on time

• Close old credit accounts

• Apply for multiple credit cards at once

What is the primary goal of setting personal financial goals?

• To increase spending

• To plan for future financial security

• To avoid paying taxes

• To reduce income