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Worksheetspersonal finance and budgeting test
Total questions: 13
Worksheet time: 10mins
Why do households sell their labor to private businesses?
to receive income
to pay taxes
to sell their labor
to get interest
Which of the four sectors of the United States economy is formed by entrepreneurs who use resources to produce goods and services to sell?
government
private businesses
households
banks
What is the purpose of a loan?
to provide interest for your savings account
to pay members of the household
to give money to the government to help pay for schools and roads
to repay the banks based on the amount of the loan plus interest
Why is it important to pay taxes to the government?
so the cities can use tax money in order to fund these services (roads, street lights, schools) to ensure that the community is safe
to pay the government
because taxes are a part of the economy
because there is so much money and the government need to find things to do with it
How does competition affect the households and the community?
the companies will raise the prices in order to get more demand
the companies will try to make less of the product in order to pay all the workers
companies will each try to produce a better version of the product and sell it at a lower cost to consumers
the products might now be as good
Which of the following is not common quality of an entrepreneur?
confident
invests a lot of money
doesn't like working long hours
dedicate
What is a price incentive?
buying something for cheap and reselling it for more money to make a profit
the household worker gets a holiday bonus for their hard work
the price of a product gets raised in order to fit the competition
a store sells their products for cheaper for a special deal
How does the phrase "making ends meat" relate to budgeting?
to have enough money to budget
make enough money to pay all of your expenses
to earn an income
to put money into savings
How can members of the household manage their income and expenses?
personal budget
working
taking out a loan
putting money into savings
What is an expense?
the money that you make
the way you budget your money
the loans you have
the money that you spend
What should a person make sure to balance when creating a personal budget?
competition and cooperation
spending and saving
risk and reward
purchasing and investing
What is the part of the personal budget that members of the household earn?
savings
expenses
interest
incomes
What does it mean to budget your money?
spend all the money you make on different things at the mall
making sure that you have leftover income each month after paying all of your expenses
buying things that you don't need but are cheaper than the things that you do need
spending the same amount that you make every month
