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Economics Test Review

Total questions: 66

Worksheet time: 33mins

Name
Class
Date
1.

tangible items that result from production

a)

complements

b)

goods

c)

services

d)

supplements

2.

nonphysical results of production

a)

complements

b)

goods

c)

services

d)

supplements

3.

products that are often used or consumer in combination with one another

a)

complements

b)

goods

c)

services

d)

supplements

4.

products that can replace one another

a)

complements

b)

goods

c)

services

d)

supplements

5.

the study of how productive resources are used to provide the goods and services that satisfy human wants

a)

economics

b)

opportunity cost

c)

scarcity

d)

trade-off

6.

the basic economic problem - we can't have everything we want

a)

economics

b)

opportunity cost

c)

scarcity

d)

trade-off

7.

you must give up something if you want to get something (this is what every choice involves)

a)

economics

b)

opportunity cost

c)

scarcity

d)

trade-off

8.

when making a choice, the next best alternative (what you give up when you make a decision)

a)

economics

b)

opportunity cost

c)

scarcity

d)

trade-off

9.

inputs used to produce goods and services

a)

capital resources

b)

human resources

c)

natural resources

d)

productive resources

10.

things that occur naturally in nature that make production possible

a)

capital resources

b)

human resources

c)

natural resources

d)

productive resources

11.

man-made physical resources used in production

a)

capital resources

b)

human resources

c)

natural resources

d)

productive resources

12.

the physical and mental work effort that is expended in production

a)

capital resources

b)

human resources

c)

natural resources

d)

productive resources

13.

deciding how to spend your money before you actually spend it

a)

budget

b)

debt

c)

expense

d)

income

14.

anything that you spend money on

a)

budget

b)

debt

c)

expense

d)

income

15.

money earned through work

a)

budget

b)

debt

c)

expense

d)

income

16.

the amount you owe on a loan

a)

budget

b)

debt

c)

expense

d)

income

17.

the physical form of money, such as coins or paper money

a)

balance

b)

cash

c)

credit

d)

interest

18.

turning your money over to a financial institution for safekeeping

a)

balance

b)

cash

c)

credit

d)

deposit

19.

obtaining something you want with the understanding that you'll pay for it later

a)

cash

b)

credit

c)

deposit

d)

interest

20.

a percentage charged when you borrow money; it can also be an amount earned for saving money in a savings account

a)

credit

b)

balance

c)

cash

d)

interest

21.

an amount available or owed on an account

a)

balance

b)

cash

c)

credit

d)

deposit

22.

a bank account that allows quick access to money for everyday expenses

a)

checking account

b)

debit

c)

double-entry accounting

d)

transfer

23.

moving money from one account to another

a)

checking account

b)

debit

c)

double-entry accounting

d)

transfer

24.

a budgeting method where you record your earnings twice: once in your account and once in your budget

a)

checking account

b)

debit

c)

double-entry accounting

d)

transfer

25.

an amount removed from your bank account to pay for something

a)

checking account

b)

debit

c)

double-entry accounting

d)

transfer

26.

a document that comes with your paycheck, showing how much you were paid and how much was withheld for taxes

a)

accounts

b)

cleared

c)

copay

d)

pay stub

27.

the time it takes for money to move from one account to another

a)

cleared

b)

copay

c)

net pay

d)

pay stub

28.

a record or statement of financial expenditures or receipts, often related to a bank or credit union

a)

accounts

b)

copay

c)

net pay

d)

pay stub

29.

the amount of money left on your paycheck after taxes have been withheld

a)

accounts

b)

cleared

c)

copay

d)

net pay

30.

the amount you pay to a healthcare provider before your insurance takes the claim, usually paid before you receive the service

a)

cleared

b)

copay

c)

net pay

d)

pay stub

31.

amount of money placed into a savings or checking account

a)

deposit

b)

overdraft

c)

statement

d)

withdrawal

32.

occurs when withdrawals have gone over the available limit

a)

cleared check

b)

deposit

c)

overdraft

d)

statement

33.

a check that has been honored and processed

a)

cleared check

b)

deposit

c)

overdraft

d)

withdrawal

34.

an amount removed from savings or checking accounts

a)

deposit

b)

overdraft

c)

statement

d)

withdrawal

35.

document published by your bank that details your transactions

a)

deposit

b)

overdraft

c)

statement

d)

withdrawal

36.

What is a budget?

a)

the same thing as a savings account

b)

a sum of money to be used for a particular purpose

c)

a list of things you want

d)

the same thing as a checking account

37.

What is a debit card?

a)

It's like a credit card, but it takes money directly from your checking account.

b)

It's a card that lets you buy goods and services based on a promise to pay later.

c)

It's a card which you can only use to make online purchases.

38.

What is a credit card?

a)

a card that lets you buy goods and services based on a promise to pay later

b)

a card that charges monthly interest if the balance is not paid in full

c)

both of the other answers

d)

neither of the other answers

39.

What is a checking account?

a)

a sum of money to be used for a particular purpose

b)

the same thing as a savings account

c)

a share in a corporation that gives you a stake in the company and its profit

d)

an account where the depositor can write checks

40.

What is a savings account?

a)

an account where money is stored and returns a low interest rate

b)

the same thing as a checking account

c)

an account that allows you to borrow money at a rate of interest

d)

the same thing as having a credit card

41.

You just received $500! What is the best way to keep up with it?

a)

budget it by splitting it among your current and future expenses

b)

stick it under your bed for safekeeping

c)

put it in your savings account

d)

spend it because you only live once!

42.

What is it called when you spend more than you have?

a)

transfer

b)

debt

c)

withdrawal

d)

debit card

43.

Why open a checking account?

a)

it's a safe place to store money

b)

it lets you use a debit card

c)

it makes it easy for you to pay others and for others to pay you

d)

all of the above

44.

You are dying to see your favorite band in concert this summer. What's the best way to get a few tickets?

a)

put it on your credit card now and pay later

b)

ask your parents for tickets

c)

add "entertainment" to your budget and allocate some cash there each week

d)

take money from your other budget categories until you have enough

45.

You'd like to treat your friend to some lunch. Your total comes to $12.60. If you add on a 20% tip, what's lunch going to cost you?

a)

$14.49

b)

$20.15

c)

$15.12

d)

$17.43

46.

You account statement arrived and you had a balance of -$43.25. After the $409.52 deposit from your job, what is your new account balance?

a)

$366.27

b)

$423.07

c)

$321.18

d)

$376.26

47.

What is an overdraft fee?

a)

a state tax

b)

a federal tax

c)

a fee for overspending

d)

a fee for maintaining your account

48.

Why does your employer withhold money from you on each paycheck?

a)

because she isn't a very nice person

b)

to pay federal and state taxes

c)

to make up hours of work you missed

d)

because you were overpaid last month

49.

Which of the following would be an example of a utility cost?

a)

your college savings fund

b)

your electric and heating bill

c)

your grocery budget

d)

your cell phone

50.

What happens if you try to use your credit card after you've already met your credit limit?

a)

your card will get declined

b)

your banks or credit union will issue a "bad check" notice

c)

the charge will go through anyway - you'll be responsible to pay it back whenever you can

d)

nothing happens - the charge goes through

51.

Which of the following are necessary costs of car ownership?

a)

gas, insurance, maintenance

b)

insurance, registration, tinting for windows

c)

car payments, rims, registration

d)

sweet tunes, sunglasses, fuzzy dice

52.

When unexpected payments come up (like having to pay a towing company when your car was parked illegally), you should take the unexpected expense from which budget?

a)

entertainment

b)

utilities

c)

groceries

d)

reserves

53.

Which of the following can be considered an emergency expense?

a)

You broke your arm. You can't work for a few days and you'll need to pay for your medical care.

b)

Your favorite band is playing a secret show downtown.

c)

You ran out of food and only have tuna and rice to get you through until payday tomorrow.

d)

You forgot you borrowed money from a friend and he wants you to pay him back soon.

54.

What could be said about emergency expenses?

a)

They're totally not your fault and can't be helped.

b)

Spending a little more to protect yourself now could mean spending less in the future.

c)

They're the best time to break out that trusty credit card!

d)

It's best to set money aside BEFORE emergencies happen.

55.

If "net worth" refers to the amount of money you have (total), how does your budget measure it?

a)

the amount of money you have in your savings account

b)

the amount of money you have in all your accounts combined

c)

the amount of money leftover after you've created a budget and allocated funds

d)

the cost of a fishing net

56.

What is the best way to pay for unplanned expenses?

a)

hope your parents will make up the difference between what you have and what you need

b)

keep an emergency fund

c)

carry large sums of cash in your wallet, just in case

d)

take money from other parts of your budget to pay for the expense

57.

Which of the following is true about debt?

a)

Eventually, your creditor will forget about it if you wait long enough.

b)

Debt is a necessary part of any budget.

c)

Debt is unavoidable for some expenses, like medical costs and school.

d)

Debt negatively affects your net worth, regardless of what it's used for.

58.

What's the point of a budget?

a)

It's a way to track your spending and work toward your saving goals.

b)

It's a replacement for opening checking and savings accounts at your bank.

c)

It helps keep your parents off your back.

d)

It helps you decide how much or how little you need to work.

59.

What type of economy does that United States have?

a)

market economy

b)

command economy

c)

traditional economy

d)

global economy

60.

Which of the following is an example of a good?

a)

teaching

b)

collecting trash

c)

an apple

d)

cell phone service

61.

Which of the following is an example of a service?

a)

book

b)

rainfall

c)

haircut

d)

a television

62.

Which of the following would be considered an example of complements?

a)

ice cream and frozen yogurt

b)

butter and margarine

c)

peanut butter and jelly

d)

pencils and pens

63.

Which of the following would be considered an example of supplements?

a)

shampoo and conditioner

b)

butter and margarine

c)

hamburgers and hamburger buns

d)

football and a helmet

64.

Buildings, tools, equipment, and factories are examples of what?

a)

natural resources

b)

capital resources

c)

human resources

d)

gross domestic product

65.

Workers who cut trees or mine for iron ore, workers on an assembly line, and truck drivers who transport materials are all examples of which of the following

a)

human resources

b)

capital resources

c)

natural resources

d)

gross domestic product

66.

Water, oil, trees, wood, iron, coal, land, and natural gas are all examples of which of the following?

a)

natural resources

b)

human resources

c)

capital resources

d)

gross domestic product