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Economics Final Assessment Review #2

Total questions: 25

Worksheet time: 14mins

Name
Class
Date
1.

One way to increase your creditworthiness is to do what?

a)

Pay the minimum on your credit cards

b)

Have more than two credit cards

c)

Paying for everything with cash

d)

Paying off your credit balance every month

2.
What is credit?
a)
Free money
b)
Borrowed money
c)
Standard of living
d)
A term that causes tears
3.
The cost of borrowing money is referred to as 
a)
Interest 
b)
Annual Percentage Rate 
c)
Credit 
d)
Credit Line 
4.
The amount you pay to use someone else's money is also called --------- and is a percentage of the principal
a)
Cash flow
b)
Interest
c)
APR
d)
Debt
5.

Disadvantages of credit are...

a)

credit costs money

b)

the temptation is to buy more than you can afford

c)

if you fail to repay the credit you use, you will lose your good credit and lenders will stop giving you credit

d)

you may also lose some of your income and property, which may be taken from you in order to repay your debts.

6.

the smallest amount you can pay and remain a borrower in good standing

a)

expected payment

b)

minimum monthly payment

c)

interest

d)

finance charges

7.

Bankruptcy _______.

a)

May cause the loss of car, house, and furniture

b)

is the first step to take when a person has financial troubles

c)

is a free court process for consumers

d)

clears from a credit record after one year

8.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
9.
When a major car company lowers its prices, other car makers will probably 
a)
maintain existing prices.
b)
raise their prices.
c)
go out of business.
d)
lower their prices.
10.

A consumer would be best defined as...

a)

A person who purchases goods and services for personal use

b)

A business that consumes other businesses

c)

A business or person who creates a product to sell

d)

A person who purchases goods in order to resell them.

11.

A __________ is work people do for consumers.

a)

Service

b)

Goods

c)

Durable goods

d)

Consumers

12.

What is a good?

a)

work performed for someone

b)

A baseball game

c)

Things people do for money

d)

Things that people make or grow

13.
Doctor: Goods or Service?
a)
Goods
b)
Service
14.
House: Goods or Service?
a)
Goods
b)
Service
15.
Does this person provide a good or a service?
a)
good
b)
service
16.

What are the types of taxes a person might pay?

Check all that apply.

a)

Sales tax

b)

Natural tax

c)

Income tax

d)

Property tax

e)

Birth tax

17.

Our tax money is spent on all of the following EXCEPT:

a)

Social Security

b)

The Military

c)

Private School Education

d)

National Parks

18.

Which is TRUE about earned income and unearned income? (hint: choose 2 correct answers)

a)

Earned is how much you make from a job

b)

Earned is any money you make in interest, dividends, etc.

c)

Unearned is any money you make in interest, dividends, etc

d)

Unearned is how much you make from a job

19.

Money being taxed comes from

a)

Net Pay

b)

Gross Pay

c)

Take Home Pay

d)

Pay Day...the candybar

20.

Who pays taxes

a)

everybody

b)

only those who invest in stocks

c)

only those who watch Saturday morning cartoons

d)

only those who earn $20,000

21.
Cost of credit expressed as a yearly percentage 
a)
Mortgage
b)
Principal
c)
APR
d)
Finance company
22.

An economist might say that higher interest rates would make people do what?

a)

Postpone the purchase of a new home

b)

Buy a used car instead of buying a new car

c)

Save more money in the bank

d)

All of the Above

23.

What do you think should be part of building your financial plan?

a)

Wants

b)

Needs

c)

Income

d)

Both Wants & Needs

24.

When considering a financial plan, you would want to include everyday expenses. What is something else you might want to include in your plans?

a)

Savings

b)

Vacation

c)

Emergency fund

d)

All of the above

25.

A savings account is a hedge against a recession because ________.

a)

Your savings account can disappear if the bank closes.

b)

Your savings account can go up or down in value.

c)

Your savings account provides no protection against an economic downturn.

d)

Your savings account is insured and you cannot lose your savings.