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WorksheetsEconomics Semester Test Study Guide
Total questions: 111
Worksheet time: 1hrs 2mins
Jennifer works for the Pepsi company as a truck driver. What type of resource is Jennifer?
Capital Resource
Human Resource
Natural Resource
Entrepreneur
Which of the following is true about supply and demand?
If demand is greater than supply, prices are lower.
If supply is greater than demand, prices are lower.
If supply is equal to demand, the prices are lower.
If supply is greater than demand, the prices are higher.
Why do countries have currency?
So people can earn more money.
So people can buy goods and services
So people have a way to pay taxes.
So people can trade labor for other goods and services.
Ben needs to study after baseball practice for his math test tomorrow. However, the team said they were going to hang out and get ice cream afterwards. If Ben goes for ice cream, what is his opportunity cost?
Ben's growing friendships with his teammates.
Ben's score on his Math test.
Ben's ability to improve his baseball skills.
Ben's teammates will call him a nerd.
The intersection of the supply curve and the demand curve shows
supply
demand
equilibrium price
shortage
What is a credit score?
A number used to determine how much credit to extend to person
A measure used to indicate a person's gross wealth
A reward system that is based on the number of credit cards a person has
A formula solely on a person's earnings
Purchases made with your debit card are usually:
Deducted immediately from your checking account
Deducted from your credit card balance
Added to your credit card balance
Put on your credit card bill as a cash advance
Which of the following are true about supply and demand?
If the demand is greater than supply, then prices are lower
If supply is greater than demand, then prices are lower.
If supply is equal to the demand, the prices are higher.
If supply is greater than demand, then prices are higher.
Makenzie has been saving her money for a new phone. She has enough to buy it, but her old phone still works just fine. What is Makenzie's opportunity cost if she decides to go ahead and buy the new phone?
Makenzie will have a smaller amount of savings.
Makenzie will have two phones that she can use.
Makenzie will have a new phone.
Makenzie will have more money than she did before buying the new phone.
Tim needs to study for his math test. However, his friends have texted that they are meeting at the community pool to hang out. If Tim goes with his friends, which of the following is an opportunity cost?
Tim's friends will give him a hard time for not joining them
Tim's score on his math test
Tim's lack of support from his friends.
Tim's ability to improve on his swimming
Economics is about allocating resources to produce and distribute which of the following?
outcomes and properties
wages and profits
goods and services
consumers and producers
Which economic indicator would be most useful for figuring out how many goods are being sold to consumers?
Consumer Price Index
retail sales
new housing construction
gross domestic product
these three things describe a traditional economy:
barter system, so trade without currency, based on exchanging goods/services for other goods/services
groups exchanging goods on a local/tribal basis
mainly before world trade/travel
the government controls all trade
________ uses tax revenue from individuals and businesses to provide public goods and services.
Individuals
Government
Businesses
Private Financial Institutions
The want or willingness a consumer has to purchase a good or a service is called?
The amount of goods or services available for a producer to sell is called?
An individual who purchases (buy) goods.
What are statistics that help you understand the level of development of a country from low to high (poor to rich) (6.8B):
Standards of Living
Economic Indicators
Cost of Living
Keeping up with the Jones
What is the definition for inflation?
The market value of all final goods and services produced in a nation during a period of time, usually a year.
The increase of general prices over time.
When people do not have jobs and are actively looking for one.
Derrick worked his entire life at a car manufacturing facility owned by Big Block Cars, Inc. He is now seventy-three years old and enjoying his retirement. His main source of income is the money he receives from 401(k) from his time at Big Block Cars.
How would an extended period of unexpected inflation affect Derrick?
The taxes on his retirement would increase.
The taxes on his retirement would decrease.
It would reduce the value of his source of income
It would increase the value of his source of income.
For most individuals, which of the following is MOST LIKELY to increase earnings over the long-term?
. finding a second job
working longer hours
becoming an entrepreneur
investing in skill development
An automobile insurance policy is LEAST LIKELY to cover expenses arising from which of the following?
theft
collisions
natural disasters
routine maintenance
Raul has purchased fire insurance for his home, but he has decided not to purchase vision insurance. What is the MOST LIKELY reason for his decision?
Raul reduced the risk of his home catching on fire by purchasing fire insurance, but was not worried about reducing the risk of vision problems.
Fire insurance is very expensive and Raul did not have enough money to pay for vision insurance after purchasing fire insurance for his home.
There is nothing Raul can do to reduce the risk of his home catching on fire, but Raul can practice good hygiene to reduce the risk of vision problems.
The cost of repairing Raul's home after a fire is greater than the cost of fire insurance, but Raul's yearly eye checkups cost less than vision insurance.
Logan earns compound interest on his savings. Based on this, which of the following statements is true?
Logan's money grows faster and faster as the years go on.
Logan needs to make very large deposits in order to expect much of a return.
The longer Logan can postpone saving money, the better off he will be.
The more years Logan has to save, the less effective it is.
Which of the following borrowers is likely to receive the lowest interest rate for a bank loan of $50,000?
an investor who plans to buy many shares of stock in a new corporation
a business owner who needs to raise money to pay off another large loan
a homeowner who wants to build an addition to her house that will increase its value
an individual who desires to open a restaurant in a neighborhood with significant competition
Which of the following must a person under the age of twenty-one provide proof of in order to be approved for a credit card?
a source of income
a savings account
a high school diploma
a utility or phone bill
Matt's mom also has some money she wants to put in a bank. She will not need to use that money for about three years. Why might a certificate of deposit be good for Matt's mom?
She will earn a higher amount of interest.
She has to put a certain amount in the account.
Her account may be charged a fee.
Her money will be easy to take out.
In order to protect against a risk of accidental property damage, a consumer would MOST LIKELY purchase which of the following?
an annuity
a mortgage
an insurance policy
a security agreement
A bank customer seeks to borrow a large sum of money. On her application, she indicated that she has a full-time job with a high salary. This resulted in her receiving a loan interest rate that was below the average. Which of the following BEST explains this result?
She demonstrated an ability to repay the loan.
She indicated that her need for the loan is low
She demonstrated that the loan would be put to good use.
She indicated that she has other sources of financial assistance.
Elena purchased several items of clothing for $120. She used a credit card to pay for her purchase. What is the BEST way to reduce the cost of using a credit card for this purchase?
pay slightly more than the minimum payment each month
pay the entire balance due before the grace period expires
pay the minimum payment each month until the balance is paid in full
. pay the minimum payment as soon as the credit card statement is received
Which factor increases a consumer's credit worthiness?
high loan balances
long borrowing history
low personal income
significant financial need
Which factor reduces the credit worthiness of a consumer?
high loan balances
significant savings
significant collateral
high annual income
In the production of a wooden chair within the circular flow model, what would the resource market include?
furtniture company
office supply company
trees
wooden chairs
If an economy is currently experiencing a peak or boom, which stage of the business cycle will they experience next?
Expansion
Peak
Contraction
. Trough
When discussing factors of production, what is an example of physical capital?
Pizza
Oven
Sun
Pepperroni
According to the graph below, what is the quantity at equilibrium?
14
400
600
1200
Which of the following are included in the unemployment rate?
adults who have retired
part-time workers seeking full-time jobs
laid-off workers seeking new employment
workers who have given up seeking a new job
The Law of Demand says that
if price goes up, the quantity demanded goes up
if price goes down, the quantity supplied goes up
if price goes down, the quantity demanded goes down
if price goes down, the quantity demanded goes up
Pascal has owned and operated Pascal's Pizza in
Decatur, Georgia, for twenty years. Pascal
occasionally raises the prices of his pizzas to
cover business costs and to earn a profit to
support himself and his family. Why else would
Pascal raise the price of pizza?
Pascal's Pizza was closed for health violations,
driving away customers.
Pascal bought too many perishable ingredients
and has too much pizza.
Pascal opened a second store location and
wants to attract new customers.
Pascal's Pizza's rival, Penny's Pies, closed and
its customers still want pizza.
Which is the BEST definition of marginal benefit?
the additional gain from producing or consuming
one more unit of something
the value of what is given up when a choice is
made between one alternative and another
he trading of one good or service for another
without the use of money
the rise in the average price of all the goods and
services in an economy
When is the market price of a product most likely
to increase?
when demand for the product increases
when a competitor makes a better product
when a cheap substitute for the product appears
in stores
when the cost of raw materials declines
As a program Social Security is designed to
achieve which of the United States economic
goals?
economic freedom
economic security
economic equity
price stability
Government provides public goods like roads and
schools because these goods are
not needed by business owners and individuals.
necessary for national security.
regulated by government.
unprofitable for companies to provide.
What is a credit score?
a three-digit score that tells lenders how much money you make each year.
A five-digit numerical rating that reflects how likely you are to repay your debt.
A three-digit numerical rating that reflects how likely you are to repay your debt.
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
With insurance, a higher deductible means a
lower premium.
higher premium.
free healthcare.
unlimited liability.
A ___________ is like a loan to a corporation or the government and is a safer investment.
401(k)
bond
stock
share
A person or organization that uses a product or service
Business
Consumer
Loan Shark
Asset
The percentage of principal charged by the lender for use of its money
Interest
Interest Rate
Liability
Net Worth
The additional cost a lender charges for borrowing their money
Interest
Interest Rate
Financial Plan
Positive Net Worth
The persistent rise in the cost of goods and services over time
Goods & Services
Inflation
Copays
Coverage
An arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer
Deductible
Premium
Claim
Insurance
The amount of money paid for an insurance policy
Premium
Deductible
Claim
Insurance
The amount of money you will pay out of pocket before the insurance company will make a payment
Policy
Premium
Deductible
Co-pay
(also copayments or coinsurance) the payments an individual makes each time they get medical service
Insurance
Copays
Policy
Loan
Protection for losses to a private residence and the possessions within it, as well as liability
Homeowner's Insurance
Renter's Insurnce
Policy
Loan
Protection for destroyed or stolen personal property for a renter
Renter's Insurance
Homeowner's Insuranace
Policy
Claim
Coverage for an individual’s (or family‘s) medical expenses from illness or injury
Health Insurance
Renter's Insurance
Homeowner's Insurance
Claim
People who are designated by the policyholder to receive the death benefit of a life insurance policy
Insurance Claim
Beneficiaries
Policy Holders
Claim
The average cost of the basic goods and services needed to sustain a certain standard of living
Cost of Living
Standard of Living
Audit
Tax Bracket
If you DO NOT pay your credit card bill on time, what will happen?
nothing will happen
card will be cancelled
jail time
late fee
_____________________ is money that is borrowed.
balance
debit
credit
interest
Paying 20% of your credit card balance every month
Making the minimum payment every month
Paying off your balance every month
Saying "credit" every time the cashier asks "Debit or Credit?"
Pay all of your bills on time
Spend more money on each of your credit cards
Apply for 3 new credit cards in two months
When merchants ask, "Credit or debit?" always choose credit
Complete a 1040 form
Buy a copy of TurboTax and file her taxes
Complete an I-9 form
Complete a W-4 form
You're automatically eligible to have any remaining student loan balance forgiven by the Federal government.
Universities will be more likely to accept you when making admissions decisions.
Lenders are more likely to extend credit to you at lower interest rates.
You get a $100-$500 check in the mail from the Federal government as a reward.
Debit cards have low interest rates while credit cards have high interest rates
Debit cards spend money from your own checking account while credit cards take out a loan from the credit company
Debit cards are better to use in stores while credit cards are better for shopping online
Debit cards allow you to view all your transactions online while credit cards only show your available credit limit
What is the term for a loan to purchase a house?
APR
mortgage
cosigner
finance
690-719 is considered a(n) _____ credit score.
bad
fair
good
excellent
A specified amount of money that the insured must pay before an insurance company will pay a claim.
premium
deductible
claim
$1 million
Expenses that are essential for you to be able to live and function
wants
cost of living
needs
variable expenses
FICO Credit Score ranges from?
450-1000
350-850
501-990
300-800
In most states, it is illegal to drive without ___________.
health insurance
property insurance
liability insurance
disability insurance
Who contributes to 401K’s?
employees and employers
parents
the government
no one
Risk can be defined as
the potential for good fortune
the potential for profit
the potential for loss
the potential for gain
How many credit cards should I have?
3-5
0-2
10
as many as I can get
____________ is a formal and legal declaration that you are not able to pay your debts.
intent
poverty
solvency
bankruptcy
Credit is basically the same thing as a _______.
lottery winning
gift
loan
stock
When a bank evaluates you to receive credit, you must be considered
debt-free
creditworthy
poor
rich
The group who will typically pay the highest insurance premiums for auto insurance is
woman who just turned 25
teenage boys
retired grandmother
new college graduate who is also married with children
What will make you more appealing to potential employers?
sleeping on the job & frequently on your phone
having bad work habits
having many valuable skills and training
frequent absences
What you give up when making decisions, is called?
Time value of money
Opportunity cost
Money cost
Time management
