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Personal Finance Unit 2

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.


1) What is the

governmental allocation and collection of money within the state?


a)


a. Resource policy


b)


b. Domestic policy


c)


c. Fiscal policy


d)


d. Monetary policy


2.


2) What is true about

economic resources?


a)


a. Economic resources

include only money.


b)


b. Economic

resources are limited.


c)


c. Economic resources

exist only at the individual level.


d)


d. Economic resources

are always controlled by the government.


3.


3) Governments

collect money through which of the following?


a)


a. Taxes


b)


b. Bonds


c)


c. Selling resources


d)


d. All of the above


4.


4) In economic terms,

marginal is another word for which of the following?


a)


a. Outside


b)


b. Rare


c)


c. Additional


d)


d. Boundaries


5.


5) A balanced economy

generally has which economic stance?


a)


a. Expansionary


b)


b. Contractionary


c)


c. Neutral


d)


d. Exceptionary


6.


6) An economy where

more money is being collected than is being allocated or spent is known as

what type of economic stance?


a)


a. Expansionary


b)


b. Contractionary


c)


c. Neutral


d)


d. Exceptionary


7.


7) A share of

ownership in a company is known as which of the following?


a)


a. Stock


b)


b. Investment


c)


c. Rebate


d)


d. Bond


8.


8) The New York Stock

Exchange is an example of what type of stock market?


a)


a. Virtual


b)


b. Distance


c)


c. Physical


d)


d. Individual


9.


9) Why do most

companies sell shares of stock?


a)


a. All companies are

required to sell shares of stock.


b)


b. To let more people

vote on company decisions.


c)


c. To generate

income for the company.


d)


d. To gain a greater

reputation.


10.


10) What is true

about the stock market?


a)


a. Investors always

make money from investing in the stock market.


b)


b. All stock markets

feature physical location-based auctions of stocks.


c)


c. Even

non-investors are influenced by the stock market.


d)


d. All of the above

are true


11.


11) What is a sort of

auction for stocks in which traders verbally submit their offers?


a)


a. Open outcry


b)


b. Public caucus


c)


c. Verbal auction


d)


d. Loud session


12.


12) What is a benefit

of stock markets?


a)


a. They create jobs.


b)


b. They allow

companies to generate income.


c)


c. They allow

individuals to invest money and create more money.


d)


d. All of the above.


13.


13) What is one

economic principle?


a)


a. Resources are

unlimited.


b)


b. Individuals have

no rational self-interest.


c)


c. Resources are

limited.


d)


d. The wants of

society are limited.


14.


14) When talking

about economic resources, capital refers to which of the following?


a)


a. Money


b)


b. Tools and

machinery to manufacture goods.


c)


c. Investments and

stocks


d)


d. All of the above


15.


15) Which of the

following is an economic resource?


a)


a. Money


b)


b. Investments


c)


c. Entrepreneurial

ability


d)


d. All of the above


16.


16) Economists argue

that individuals have “rational self-interest.”


a)


a. True


b)


b. False


17.


17) In economic

terms, “land” refers only to physical plots of ground.


a)


a. True


b)


b. False


18.


18) Labor is an

unlimited resource.


a)

True

b)

False

19.


19) The difference

between unlimited wants and limited resources affects both individuals and

the economy.


a)

True

b)

False

20.


20) “Free” items only

cost the company that gives them away.


a)

True

b)

False

21.


21) The most common

way for a government to raise money is through the collection of taxes.


a)

True

b)

False

22.


22) Entrepreneurial

ability refers to the human resource of finding resources, making business

decisions, and creating new products.


a)

True

b)

False

23.


23) Stock market

crashes have relatively little effect on the overall economy.


a)

True

b)

False

24.



24) The NASDAQ

features an open outcry.


a)

True

b)

False

25.


25) While we talk

about the stock market as if it were one big entity, the reality is that

there are many stock markets around the world.


a)

True

b)

False