Economics & Personal Financial Literacy Final Exam 2024 (2)

This chart indicates unemployment rates for individuals with different levels of education, ranging from "less than a high school diploma" to "doctoral degree." It also indicates median weekly earnings for each level of education. Based on the chart, what effect does education have on the salary and employment of individuals?

• Obtaining a college degree ensures that individuals will be employed, but their salary may not necessarily be higher.

• Obtaining a doctoral degree ensures that individuals will receive the highest weekly earnings and guarantees employment.

• Individuals with higher levels of education are more likely to have higher weekly earnings and lower rates of unemployment.

• Individuals with a high school diploma are more likely to be unemployed than individuals without a high school diploma, but their salary will not be affected.

• Pay the utilities bill

• Make her car payment

• Buy food

• Put 20% into the emergency fund/savings

What is net income or 'take home pay'?

• the amount an individual has been paid after taxes and withholdings are deducted

• the total weekly/monthly pay that an individual earns for working an entire pay period

• the amount of money a person has after they have paid all of their rent and bills

• the amount of money in a person's saving's account after debits/withdrawals are subtracted

How is the current balance in a checking account calculated?

• Previous Balance + Deposits + Withdrawals

• Previous Balance - Deposits + Withdrawals

• Previous Balance + Deposits - Withdrawals

• Previous Balance - Deposits - Withdrawals

What is one of the features of a free market economic system/capitalism?

• Government officials ensure wealth and resources are distributed efficiently.

• Individuals have the freedom to choose what to produce and what to purchase

• Monopolies ensure the profitability of specific economic sectors.

• International trade creates a dependency among economic partners.

In a free market economy, what is the most significant motive for individuals and businesses to produce goods and services?

• the opportunity to earn a profit

• contributing to the public good

• gaining popularity and followers

• the power to influence public policy

Read the text and answer the question. The global diamond market is controlled by a very small number of companies operating out of select regions in the world. Recently, a state-owned company in South America revealed that they discovered a large new diamond mine and that the company would begin selling industrial-grade and gem-quality diamonds within two years. Which graph represents how the company’s announcement will MOST LIKELY affect the global market for diamonds?

• [Graph A]

• [Graph B]

• [Graph C]

• [Graph D]

Why do gasoline prices fluctuate? Retail gasoline prices are mainly affected by crude oil prices and the level of gasoline supply relative to gasoline demand. Strong and increasing demand for gasoline and other petroleum products in the United States and the rest of the world can place intense pressure on available supplies. Gasoline prices tend to increase when the available supply of gasoline decreases relative to real or expected gasoline demand or consumption. Gasoline prices can change rapidly if something disrupts crude oil supplies, refinery operations, or gasoline pipeline deliveries. Even when crude oil prices are stable, gasoline prices fluctuate because of seasonal changes in demand and in gasoline specifications.

• alternative fuels

• increased quality

• increased demand

• increased production

What is the effect when a business invests more capital in new technology and machines?

• increased productivity and lower cost of production per unit

• excessive debt loads that put a company at risk of bankruptcy

• reduced product quality

• increased consumer complaints

What is the purpose of a corporation?

• to make a profit for its shareholders

• to provide jobs for workers

• to improve communities

• to reduce competition in a market