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Worksheets2nd Semester Exam
Total questions: 100
Worksheet time: 50mins
Name
Class
Date
1.
What is a civic responsibility?
a)
pay taxes
b)
obey laws
c)
jury duty
d)
vote
2.
What will banks do, if the Fed orders banks to "tighten the money supply" ?
a)
do not lend out money
b)
place money in vaults
c)
place lessen money in the reserve & put more in circulation
d)
place more money in the reserve & less in circulation
3.
What will happen if the government increases spending while revenue is declining?
a)
national debt goes down
b)
national debt will increase
c)
national debt will remain the same
d)
national debt will have a surplus
4.
What will occur, when the revenue & expenditures of a budget are equal?
a)
balance budget
b)
deficit
c)
surplus
d)
all choices given
5.
What is the largest source of income/ revenue for the federal government?
a)
income tax
b)
excise tax
c)
property tax
d)
sales tax
6.
What type of tax is sales tax?
a)
progressive
b)
regressive
c)
proportional
d)
none of the choices
7.
If a person spends all their money on a new car, instead of only spending a portion of it on a used car. What would be the opportunity cost?
a)
buying the used car
b)
saving some money
c)
buying a new car
d)
spending all the money
8.
If a product decreases in price, what will be the result?
a)
demand decreases
b)
demand increases
c)
decrease in quantity demand
d)
increase in quantity demand
9.
In which economic system would a person live if they were not allowed to choose their own career?
a)
mixed
b)
market
c)
command
d)
traditional
10.
When the government tells all the gasoline companies they can only charge $1.50 per gallon, what has just occurred?
a)
price ceiling
b)
price floor
c)
surplus
d)
deficit
11.
What are the 2 main categories that exchange within the circular flow?
a)
businesses & households
b)
households & consumers
c)
producers & households
d)
businesses & producers
12.
What will NOT effect the GDP?
a)
schools buying computers
b)
buying a 1965 Mustang
c)
building a new court house
d)
making of a movie and not sending it out to the public
13.
What market structure allows for a variety of goods, sold in large quantities?
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
14.
What is NOT a type of monopoly?
a)
Technological
b)
Natural
c)
Government
d)
Regional
15.
What is the only long lasting form of monopoly in the USA?
a)
IPhone invention
b)
professional sports league
c)
Farmers Guild
d)
Cleco Power
16.
What is a form of structural unemployment?
a)
between jobs & entering a career
b)
laid off due to business cycle
c)
job skills do not match the economy's needs
d)
out of work due to seasonal downturns in business
17.
How has the economic system of a country changed when people gain access to jobs and supplies based off of how their ancestors did it, to now they choose what they want and when they want it?
a)
command to mixed
b)
mixed to command
c)
traditional to market
d)
market to traditional
18.
What investment poses the least amount of risk?
a)
Mutual Funds
b)
Stock
c)
Bonds
d)
CDs
19.
What is it called when someone works at a fast food restaurant, while having a college degree?
a)
underemployed
b)
working poor
c)
employed
d)
unemployed
20.
How can a budget help you achieve financial security?
a)
expanding your ability to borrow & increase debt
b)
reduce the risk of unexpected expenses
c)
Increases your financial insight & helps to distribute money effectively
d)
helps you choose the correct investments to make a good return
21.
What does Social Security pay for?
a)
military & federal workers pay
b)
unemployment funds
c)
training/ education for low income citizens
d)
senior citizens and disabled benefits/ pay
22.
What is a major tax for local government?
a)
property
b)
sales
c)
excise
d)
inheritance
23.
When you spend less than what you make it is called a
a)
surplus
b)
balance budget
c)
deficit
d)
return
24.
What happens when you purchase a government bond?
a)
loan money to government for projects
b)
borrow money from the government
c)
donate money to the government for projects
d)
pay for someone collecting social security
25.
What is NOT involved with a high national debit?
a)
reduces funds for business/ people to obtain loans
b)
government cannot fund projects
c)
investing in government bonds becomes risky
d)
lowers the GDP and money value
26.
What is a property tax discount?
a)
homestead exception
b)
severance tax
c)
tariff
d)
sales tax
27.
What is NOT a way government earn money?
a)
investments
b)
intergovernmental revenues
c)
getting loans
d)
renting property
28.
What is Not involved in Homestead Exemption?
a)
tax deduction
b)
tax
c)
valued up to $75,000.00
d)
use on the property you live in
29.
What involves the money supply & interest rates, according to the needs of the economy?
a)
Monetary Policy
b)
Fiscal Policy
c)
Investments
d)
Employment
30.
What happens in Monetary Policy?
a)
reduce income tax
b)
change reserve requirements
c)
increase government spending
d)
form debt through loans, credit cards, and inaccurate budgeting
31.
What is NOT handled by the FED?
a)
central bank
b)
regulates all banks
c)
regulates the money supply
d)
controls the national budget
32.
What action does the FED take to raise interest rates?
a)
prints more money
b)
raises government bond prices
c)
raises taxes
d)
sells more government bonds
33.
What are the 2 main components that help determine an items price?
a)
Opportunity cost & Trade offs
b)
Consumers & Producers
c)
Shortages & Surpluses
d)
Supply & Demand
34.
What are resources needed to produce goods and services?
a)
natural resources
b)
factors of production
c)
capital
d)
productivity
35.
What are luxury items considered?
a)
want
b)
need
c)
excise
d)
all choice given
36.
What is NOT a Factor of Production?
a)
entrepreneurs
b)
labor
c)
capital
d)
households
37.
When someone obtains a job, How does it not affect the business cycle?
a)
It will remain stable and unchanged
b)
It will increase sales and speed it up
c)
It will increase employment
d)
It will increase the GDP
38.
How do shortages and surpluses affect price?
a)
price will never change
b)
shortages increase price, surpluses decrease prices
c)
both cause price increases
d)
both cause price decreases
39.
What market works more efficiently when 1 business supplies the product?
a)
natural monopoly
b)
monopolistic competition
c)
perfect competition
d)
imperfect competition
40.
How does a company get people to buy their product to people who will not pay the expensive price?
a)
price discrimination
b)
rebates
c)
charge what they can afford
d)
change the product
41.
What happens when a business charges a high price for a specific product?
a)
they go out of business
b)
people will substitute the product for another
c)
people will boycott product
d)
price ceilings/ Price floors will be placed
42.
Why do cartels usually fail?
a)
people do not keep agreements
b)
they are illegal
c)
they loose money
d)
to much competition
43.
Why does the government allow patents, even if it causes a monopoly?
a)
does not want product competition
b)
company makes the best product
c)
company pays the government
d)
company gets profit because of their research without competition
44.
What is the best market structure based on price, production & efficiency?
a)
monopoly
b)
oligopoly
c)
perfect competition
d)
monopolistic competition
45.
What is 100% illegal in the USA, in any form?
a)
cartels
b)
all forms of monopolies
c)
price discrimination
d)
all choices given
46.
How does new technology effect an economy?
a)
makes it stronger & more efficient
b)
reduced dependence on foreign trade
c)
slows the economy down
d)
always reduces job avaiable
47.
Where is the unemployment rate for a perfect economy?
a)
0% - 3%
b)
4% - 6%
c)
8% - 10%
d)
10% - 12%
48.
Who is NOT considered unemployed?
a)
discouraged workers
b)
someone looking for a job
c)
someone waiting for a job to start
d)
someone who has been laid-off
49.
What is NOT a part on unemployment insurance?
a)
Bureau of Labor & Statistics
b)
help find jobs
c)
help get on welfare programs
d)
provide a person's entire lost salary
50.
Why should people practice diversification?
a)
reduces risk
b)
increases money access
c)
offsets inflation
d)
guarantees a fixed rate of return
51.
What is true about bonds?
a)
low risk investment
b)
insured by FDIC
c)
held for 3-6 months
d)
bondholder ahs ownership in company
52.
How are savings bonds different from other bonds?
a)
higher interest rate
b)
shorter time periods
c)
interest does not accrue the same, even with the lower purchase price
d)
issued in large denominations for a cheaper price
53.
How do local government gain extra money for new/ special projects?
a)
junk bonds
b)
treasury bonds
c)
corporate bonds
d)
municipal bonds
54.
What is a blue chip stock?
a)
stock that is valued under $1.00
b)
company that offers dividends
c)
company that allows votes
d)
large, popular company trades on the NYSE (stable)
55.
What is the DOW Jones Industrial Average?
a)
top 500 companies that represent the market, as a whole
b)
top 30 companies that represent the market, as a whole
c)
largest stock/ bond market that trades large companies
d)
largest stock/ bond market that trades small companies
56.
What does the SEC NOT do?
a)
rates bonds
b)
enforces financial/ investment laws
c)
monitors for dishonest business practices
d)
regulates the stock & bond trades
57.
Why does the USA have the FDIC?
a)
makes sure banks do not fail
b)
makes sure people do not loose their money, due to bank failures
c)
regulates banks
d)
regulates budgets
58.
What do we use a mortgage for?
a)
purchase a car
b)
pay for college
c)
purchase a house
d)
help budget
59.
When you purchase with your debit card, the payment works just like a ___________.
a)
credit card
b)
check
c)
money order
d)
cash
60.
What is NOT involved in NSF checks?
a)
bank fee of $25.00
b)
charge doubles after 30 days
c)
company check written to, charges fee
d)
bank presses criminal charges
61.
What is NOT involved in choosing a credit card?
a)
credit score
b)
fees
c)
credit limit
d)
APR
62.
What should you do, when you receive a credit card?
a)
use it when you need/want something
b)
do not sign the back
c)
give it to family/ friends, to use
d)
sign & keep all receipts
63.
What is the purpose of FDIC?
a)
protect people up to $250,000.00, if bank fails
b)
insure all forms of investments are safe
c)
monitor the national budget
d)
monitor the stock market
64.
What is the amount the a person borrows, when obtaining a loan?
a)
principle
b)
interest
c)
coupon rate
d)
par value
65.
What is the amount a person is charged for obtaining a loan?
a)
principle
b)
interest
c)
return
d)
profit
66.
Why are mutual funds risker investments than savings accounts?
a)
not backed by FDIC, because controlled by stock market
b)
not protected by SEC
c)
does not have a fixed interest rate
d)
does not have a maturity date
67.
Why would a person put money in a savings account?
a)
to gain maximum interest
b)
for a safe, long term investment
c)
liquidity, since it is short term
d)
gain a high return, with low risk
68.
What is NOT effected, by monetary policy altering the money supply?
a)
interest rates
b)
prices
c)
GDP
d)
stock/ bond values
69.
What is NOT a characteristic of money?
a)
divisibility
b)
durability
c)
acceptability
d)
commodity
70.
What does the GDP NOT determine?
a)
economy levels of a country
b)
value of production with goods & services
c)
Standards of living
d)
stock values
71.
How is demand NOT based on the consumer?
a)
what we want
b)
what we will buy
c)
resources have to buy
d)
standards of living
72.
What is NOT determined through market structure?
a)
countries government standing
b)
levels of competition
c)
prices
d)
barriers of entry
73.
What will NOT happen do to technology?
a)
wipe out natural monopolies
b)
decrease jobs
c)
increase jobs
d)
form government monopolies
74.
How can global interdependence hurt a countries economy?
a)
trade, decreases jobs & production
b)
wipes out natural monopolies
c)
forms patents
d)
decreases stock/ bond values
75.
What is someone who is working at a low job skill level, because of lack of education/ training?
a)
working poor
b)
underemployed
c)
employed
d)
unemployed
76.
What is the purpose of the financial system?
a)
to gain people a profit
b)
to take people's money
c)
to hinder the country's economy
d)
to decrease/ increase prices
77.
What is NOT a way financial institutions help investors?
a)
Liquidity
b)
Prospectus
c)
Diversification
d)
Subsidy
78.
What is the major difference between government bonds?
a)
maturity date
b)
par value
c)
coupon rate
d)
grade
79.
What is NOT a related to credit reports?
a)
FICO
b)
shows bills & debt
c)
credit scores
d)
allows credit inquiries without damage to report or score
80.
What is an excellent rating on credit scores?
a)
300-500
b)
650
c)
700-800
d)
AAA-D
81.
What does a credit card statement NOT show?
a)
principle
b)
compound interest
c)
fraud prevention
d)
credit score
82.
What is the monitoring and study for a countries budget?
a)
monetary policy
b)
fiscal policy
c)
supply & demand
d)
financial systems
83.
When should a person complete their yearly taxes, to check tax deductions?
a)
Janruary 15th
b)
April 15th
c)
August 15th
d)
December 15th
84.
What will happen, if the executive & legislative branch does not agree on a budget?
a)
government shutdown
b)
stock market crash
c)
nothing
d)
GDP decreases
85.
What allows a person or government to monitor it's expenses & revenues?
a)
credit report
b)
budget
c)
credit inquiry
d)
all choices
86.
What does the FED NOT affect?
a)
interest rates
b)
money value
c)
prices
d)
national budget
87.
What is the main idea of capitalism?
a)
no government control
b)
partial government control
c)
total government control
d)
government has minimal control
88.
What is NOT a resouce found in the factors of production?
a)
consumers
b)
labor
c)
capital
d)
entrepreneurs
89.
What are objects that have value, that can be exchanged for something else of value?
a)
represenative money
b)
commodity money
c)
fiat money
d)
currency
90.
What is a a price increase?
a)
deflation
b)
debt
c)
inflation
d)
surplus
91.
What are government funds given to business to encourage certain actions?
a)
capital
b)
subsidy
c)
equilibrium price
d)
national budget
92.
What is it when the quantity demanded & price move in opposite directions?
a)
law of supply
b)
law of demand
c)
equilibrium price
d)
supply & demand
93.
What influences the demand in a market area?
a)
government
b)
producers
c)
consumers
d)
business cycle
94.
What job skill level collects a salary?
a)
unskilled
b)
semi-skilled
c)
skilled
d)
professional
95.
What job skill level collects a salary?
a)
unskilled
b)
semi-skilled
c)
skilled
d)
professional
96.
What skill level would a trade school degree be at?
a)
unskilled
b)
sem-skilled
c)
skilled
d)
professional
97.
What skill level is a McDonald's worker at?
a)
unskilled
b)
semi-skilled
c)
skilled
d)
professional
98.
What skill level is a bus driver at?
a)
unskilled
b)
semi-skilled
c)
skilled
d)
professional
99.
What are the 2 main political parties in the USA?
a)
democrats and republicans
b)
libertarians & independents
c)
green & dixiecrats
d)
tea & socialist
100.
What does International Trade create?
a)
global interdependence/ globalization
b)
foreign policy
c)
apathy
d)
political parties
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