12th Grade Personal Finance Final Exam

What is the primary purpose of government?

• To promote religion

• To control all aspects of life

• To maintain order, provide services, and enforce laws

• To establish monarchies

Which of the following documents first limited the power of the English monarch?

• U.S. Constitution

• Declaration of Independence

• Magna Carta

• Mayflower Compact

A state must have which of the following characteristics?

• Police, roads, and schools

• Population, territory, government, and sovereignty

• Leaders, money, and power

• Democracy, freedom, and equality

What is sovereignty?

• Power divided between states

• Supreme power to act within its own territory

• Control by a king

• An economic system

What document announced the colonies’ independence from Britain?

• U.S. Constitution

• Articles of Confederation

• Bill of Rights

• Declaration of Independence

The United States is an example of what system of government?

• Unitary

• Federal

• Theocratic

• Confederate

What is the main disadvantage of a partnership?

• Unlimited liability

• Shared decision making

• Limited lifespan

• Double taxation

Which market structure has a single seller and complete price control?

• Monopoly

• Oligopoly

• Monopolistic competition

• Perfect competition

What is a key disadvantage of a corporation?

• Shared decision making

• Unlimited liability

• Double taxation

• Limited lifespan

Which of the following describes "unlimited liability"?

• The business is responsible for its own debts

• The owner is not responsible for debts

• The owner is personally responsible for all business debts

• Debts are shared with the government