WorksheetsECON Module 2 Review
Total questions: 32
Worksheet time: 1hrs 4mins
Which of the following accurately described the Law of Diminishing Marginal Utility?
each additional unit consumed gives LESS satisfaction or utility
each additional unit consumed gives MORE satisfaction or utility
each additional unit consumed gives EQUAL satisfaction or utility
each additional unit consumed gives NO satisfaction or utility
What is it called when you pay a company to protect an asset?
Budget
Insurance
Utility
Scarcity
Which of the following are factors that determine the cost of your insurance? (pick all that apply)
your age
past/present behaviors related to the type of insurance
where you live (geography)
the value of what you are insuring
financial stability (credit score, debts, etc)
As your level of education increases, your income potential _____.
Increases
Decreases
Stays the same
There is no relationship between these two factors.
What type of tax is the sales tax you pay on clothing?
Indirect Tax
Direct Tax
What type of tax is the tax on gasoline?
Direct
Indirect
What type of tax is a homeowner's annual property tax?
Direct Tax
Indirect Tax
What type of tax system would be most beneficial to a person with a low income?
Proportional
Regressive
Progressive
They would all be equally beneficial.
What type of tax system would be most beneficial to a person with a very high income?
Proportional Tax
Regressive Tax
Progressive Tax
All of these would be equally beneficial.
In which tax system do all citizens pay the same percentage of their income regardless of income level? (Hint: Also known as a flat tax)
Progressive
Regressive
Proportional
Approximately what percentage of the total wealth in the U.S. is held by the top 1% of earners?
1%
11%
35%
53%
Which of the following is NOT a way to file your taxes in the U.S.?
on paper by mail
through an online service from home
through a local paid professional
over the phone with an IRS agent
True or False: If someone else could claim you as a dependent but doesn't, you don't have to report it on your tax return.
True
False
If you made $20,000 in 2021 and paid 10% on the first $12000 and then 15% on the remaining $8000, what is your marginal tax rate?
10%
15%
12.5%
None of these
In some states, such as Florida, citizens don't have to pay which kind of tax?
Federal Medicare Tax
Federal Income Tax
State Income Tax
Property Tax
Which of the following terms can be defined as "the amount of income subject to income tax under the law after deductions and credits"?
Marginal Income
Taxable Income
Net Income
Gross Income
Which of the following would you most likely choose if you want to put your money in an account you can access for everyday purchases?
Money Market Account
Checking Account
Certificate of Deposit
ROTH IRA
Which term means "payout to stockholders of a portion of company profits, based on number of shares owned?"
stock market index
exchange rates
dividends
"blue chip" stock
Money in a savings account may lose real value over time if the interest rate is lower than the rate of _____.
Inflation
Exchange
Market Growth
fraud
What can be used to determine how long it will take for the value of an investment to double?
Rule of 72
The Quadratic Formula
The Pythagorean Theorem
The Stock Market Index
In the U.S., what group makes and enforces regulations about product advertising and labeling?
The Bureau of Consumer Protection
The Bureau of Corporate Fraud
Federal Deposit Insurance Corporation
Federal Bureau of Investigation
Which of the following is an example of installment credit?
debit card
credit card
phone paid for with cash
mortgage
When you are using a credit card it is best to....?
Pay only the minimum payment each month
Make sure you hit your credit limit each month
Pay off your balance within the grace period
None of these are good habits.
You have saved for years and finally, have enough to buy your dream home. You hope to live there for the rest of your life. Which mortgage would most likely be the best choice for you?
A 4.375% fixed-rate mortgage
An adjustable-rate mortgage (ARM) with a starting interest rate of 4%
When you are applying for a loan, the higher your credit score, the ____ your interest rate.
Higher
Lower
Check all of the following which are potential consequences of not paying off your debts?
Damaged credit history
Points added to credit score
Loss of property
Wage Garnishment
Lowered interest rates on future purchases
Which of the following is least likely to lower your credit score?
Declaring Bankruptcy
Identity Theft
Having multiple credit cards
Paying your monthly rent late
What is the amount you pay periodically for an insurance policy called?
Premium
Lien
Claim
Fee
If your Homeowner's Insurance does not cover damages caused by flooding, then flood damage would be a/an ______.
Exclusion
Rider
Deductible
Liability
You have health insurance and you pay $10 each month when you pick up your allergy medicine from the pharmacy. Without insurance, the medication would cost $55. The $10 you pay during the months you use the medication is known as the ______.
Co-payment
Exclusion
Deductible
Coinsurance
You take out a life insurance policy for $10,000 that will go to your little sister if anything happens to you. Your little sister is the _____ of the policy.
Holder
Beneficiary
Winner
A plan of income and expenses is known as a _____.
Budget
Net Worth
Checking Account
Vision Board
