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WorksheetsSemester Exam 2023-2024
Total questions: 50
Worksheet time: 28mins
Andy gets paid every two weeks. He still has 5 days to go before his next paycheck, but he has no money to pay for groceries this week. He is considering applying for a payday loan to cover these expenses. Why is taking out a payday loans not the best option for Andy?
Payday loans usually involve higher interest rates and fees than credit cards or other short-term loans.
Payday loans are only offered to individuals with high credit scores.
Payday loans give borrowers a way to pay for their expenses in the short-term before they receive their paycheck.
Payday are difficult to get approved and usually require a co-signer.
A credit card is an example of this type of credit.
Target Card
Installment Credit
Reverse credit
Revolving Credit
Joe wants to purchase a new car. He has a low credit score, auto repossession and was delinquent on a credit cards. Joe has been denied a new auto loan by his bank. Which of the following is negatively impacting Joe's credit and ability to get approved for an auto loan?
Character
Capacity
Collateral
Capital
Jane is looking for an apartment. Based on her credit report will her lease agreement be approved?
There is an error on Jane's credit report because it shows a past-due auto loan. Jane should report this error to the credit agency before applying for lease
There is an error on Jane's credit report because it shows a past-due auto loan. Jane does not need to report this error because it will not affect her lease applications.
Jane has an excellent credit score. She will have little to no difficulty finding an apartment based on her credit score alone.
Jane has a poor credit score. She will likely have difficulty finding an apartment on her credit score alone.
Jesus and his friends are discussing ways in which they can protect themselves from identity theft. Which of the following is NOT good advice when protecting your identity?
you should store documents with personal information in a safe place at home.
you should use different and strong passwords for each of your accounts.
you should shred any type of financial
you should use your debit card instead of your credit card when making online purchases.
Using the image above, what is one inference that can be made about consumer protection agencies?
Consumer protection agencies work to stop unfair or deceptive business practices such as false advertising that can harm consumers.
Consumer protection agencies have outlawed the sale of VCR players.
Consumer protection agencies do not have much power and have been unable to stop unfair business practices.
Consumer protection agencies led to more online shopping due to the ongoing fear of deceptive business practices.
Ada is a recent college graduate who moved to a new city to take an entry-level position at a big corporation. She is making enough money to purchase a home, but decides to rent instead. What might be the reasons Ada decided to rent vs buying her first home? Select TWO correct answers.
Ada is not sure she wants to stay in the city long-term, so she wants the mobility of renting.
Ada doesn't have the time, skill or desire to maintain and repair her own property.
Ada's financial advisor suggests that she invest in real estate by renting an apartment.
Ada wants to be able to paint her walls and re-design her kitchen.
Ada wants interest rates to go higher for home prices.
Jasmin is looking to purchase a new car and is deciding between taking out a loan for her down payment or cutting spending until she is able to come up with the money needed. Which is these statements is TRUE?
Taking out a loan will cost Jasmin more money than cutting spending.
Cutting spending is the quickest way to get money for the down payment.
Taking out a loan will not affect Julie's budget in any way.
Cutting spending will ensure that Jasmin gets the best price on her car.
What is one generalization that can be made from this image about the costs associated with homeowner's insurance?
Sometimes certain damages are excluded from the homeowner's insurance policy causing the homeowner to be responsible for the repairs.
Homeowner's insurance premiums can be expensive
Sometimes the insurance deductibles are too high and homeowners are not able to pay them.
Homeowner's policies cover all damages to your home as long as they were caused by natural disasters.
Which of the following best describes an entrepreneur?
Someone who takes financial risks to create a business in the hope of profit.
Someone who is employed 40 hours a week for a business owned by someone else.
An independent contractor who earns their wages on a per-job or per-task basis.
A labor market that relies on temporary positions filled by freelancers.
Kelly opened a small business last year selling baked goods. Her business has quickly grown but she is struggling to continue to grow the business on her own. Kelly needs to bring in more capital if she wants to expand her business. She does not want to sell her company or share the profits with a partner. What is another option that Kelly should consider doing in order to expand her business?
Kelly should franchise her company. This will allow her to expand her company and expand into new markets.
By increasing the amount of baked goods she produces.
Raise the price of her baked goods.
Kelly should sell her company and use that money to start another company.
One of the ways entrepreneurs and start-up businesses can fund their new business is through?
Crowdfunding
student loans
Giveittome.com
mortgages
The basic economic problem that all individuals, businesses and governments must solve is--
updating jobs to take advantage of the newest technology.
making sure all resources are biodegradable.
guaranteeing that everyone has a bank account.
satisfying unlimited wants with limited resources.
A video went viral making the case that chocolate taste bad. What is likely to happen to the equilibrium price of Chocolate?
The equilibrium price decreases because demand shifts left.
The equilibrium price decreases because demand shifts right.
The equilibrium price increases because supply shifts left.
The equilibrium price decreases because supply shifts right.
Alcohol, Gasoline, Tobacco, and Air Travel are all examples of what type of tax?
Regressive Taxes on Products
Progressive Taxes on Products
Estate Taxes on Products
Colonial Taxes on Americans
Which of the following is a characteristics of Communism?
The means of production are all privately owned.
Private entities play a role in economic decision-making.
Production decisions are made by government
Economic decision-making is based on the profit motive.
What is the form you have to fill out to apply for college financial aid from the federal government?
Government College Aid Form (GCAF)
Free Application for Federal Student Aid (FAFSA)
Federal Student Loan Application (FSLA)
The Common Application (TCA)
Jackie is starting her first job working part-time at a fast food restaurant. She wants to save the money she earns to go on a trip with her friends next summer. Which of the following is the best way to describe Jackie's short-term financial goal based on the SMART acronym?
To save enough money to pay for all of the summer trip expenses by the end of the trip.
To save $1,000 to cover the trip expenses in 9 months.
To save $20,000 so she can treat her friends to the trip.
To stop spending money between now and June to save for the trip.
Which of the following transactions will immediately reduce your checking account balance?
writing your monthly rent check which you will mail tomorrow
using your debit card to pay for groceries at the supermarket
using your credit card to pay for your school books
depositing a check at a local bank branch
John has $100 in his savings account. He uses the online banking to purchase a new video game for $120. His bank charges a $30 fee for overdraft. John does not have overdraft protection. It is important to track income and expenses. How much did John's video game purchase end up costing him in total?
$30
$50
$120
$150
What is the cost of having a Money Market mutual fund?
Mutual funds charge fees that are paid by investors.
Mutual funds require minimum investments of $10,000.
Investors in mutual funds can select individual stocks included in the fund.
Mutual funds allow investors to become part-owners in multiple companies.
What would be the benefit of investing in a Roth IRA versus a traditional IRA?
Investments are taxed on initial investment and will not be taxed at the time of withdrawal.
Investments are not taxed on initial investment and will be taxed when the withdrawal is made.
Pre-tax investing leaves more money in your pocket to spend now.
Post-tax investing doesn't help save money on taxes in the future, especially when you are in a higher income tax bracket.
The government supports entrepreneurs by giving money that you can qualify for. There is no need to repay this type of funding. what is it called?
Loans and Subsidies
Mortgages
title payments
interest
Pick the correct statement about Traditional IRA and a Roth IRAs.
Traditional IRA taxes are paid when deposited into account.
Roth IRA taxes are paid when depositied into account
Both Traditional and Roth IRAs are funded by your employer.
True or False: The United States can increase it's economic growth by investing in human and capital goods.
True
False
Liam wants to save enough money to take a family vacation by the end of June. Which of the following is the best way to describe Liam's short-term financial goal based on the SMART acronym?
To just plan the vacation and hope that the budget works out by the time of the trip.
To set aside $75 every month from his paycheck into a savings account starting this month.
To open a personal loan with a 15% interest rate by June 1st to pay for the vacation.
To stop going out with friends altogether after the New Year.
Demand and Supply Basics:
Demand refers to how much of a product consumers want. When demand increases, more people want to buy the product.
Supply refers to how much of a product is available for sale. When supply decreases, there are fewer products available in the market.
Prices should begin o increase whenever--
supply is high and demand is low
demand and supply are both high
supply and demand are both low
demand increases and supply decreases.
Market, Financial, and competitive risks are all examples of risks an entrepreneur might face when starting a business
True
False
What is considered a significant downside of leasing a car?
Restrictions on mileage
Higher monthly payments
No maintenance included
Difficulty in obtaining a lease
Points A, B, and C all represent what on the production-possibilities curve?
Point F can not be reached because no extra resources are available.
An option inside the curve represents less than maximum production.
There are limited production possibilities because only two good are represented.
The maximum combination of goods and services that can be produced.
What role does government play in the circular flow model?
Collects taxes from people only.
No money is exchanged between the government and businesses.
The government doesn't participate in the model.
The government can be both a consumer and a producer.
The role of resource owners and firms in a circular flow model of the economy are--
independent of one another.
only for domestic and never international markets.
interdependent of one another/work together.
never impacted by actions of the government.
The ability to decide which good, service, or resource to purchase or provide from a list of options.
The economic problem above is most likely created by ___________.
Choice
Scarcity
The limited amount of goods and services that are available to meet unlimited wants.
The economic problem above is most likely created by ___________.
Choice
Scarcity
The basic economic problem that all individuals, businesses, and governments must solve is-
updating jobs to take advantage of newest technology.
guaranteeing that everyone has a bank account.
satisfying unlimited wants with limited resources.
making sure all resources are used.
A production Possibilities Curve shows-
the plans for increasing output in the short run.
resources are constrained by choices.
the best combination of goods and services.
what can be produced with various combinations of resources.
Equilibrium is reached when what occurs?
quantity supplied equals quantity demanded
price increases
prices are inelastic
there is not change in the quantity supplied
Based on the information in the graph, what is the equilibrium price of pizza?
$4
$2
$5
$3
A shift to the left in the demand curve indicates a(n)-
decrease in price
decrease in demand
increase in population
increase in demand
Social Security and Medicare are both examples of which of the following concepts?
Government initiatives intended to close the wealth gap between the richest and poorest people.
Government programs that increase a person's economic security.
Government sponsored initiatives to provide private security for older citizens.
Government programs that are designed to monitor how citizens spend their money on healthcare related services.
Which of the following best describes the consequence of government's role as protector, provider, regulator, and consumer in the economy?
The U.S. economy moved to an entirely command economy
The U.S. free enterprise system has become more of a mixed economy
The economy no longer benefits the general public
The Communist system has become increasingly stronger in the U.S.
*Social Security
*Medicaid
*Medicare
The above are all examples of what?
Entitlement Programs
Demand side Economics
Contractionary Spending
Expansionary Policies
The United States Federal Reserve System was established to do which of the following?
Provide the nation a safer, flexible, and more stable monetary system.
Balance the federal budget.
Solve the problems of the Great Depression.
Serve as a source of loans for farmers.
In order to require banks to hold more money as opposed to lending it, the Federal Reserve can:
decrease the discount rate.
decrease the federal funds rate.
increase the reserve requirement.
suspend the federal funds rate target.
Which of the following types of tax is collected by state and local governments but not by the federal government?
Tariffs
Sales tax
Excise tax
Income tax
Based on the chart, which of these would be a result of open market operations by the Federal Reserve System?
interest rates on loans decrease
new types of currency are created
the operating hours of banks change
the size of the money supply changes
When the average tax burden for individuals increases and their taxable income increases, what form of tax is used to help equalize the wealth of a country?
property tax
estate tax
regressive tax
progressive tax
The unemployment rate has risen to 9.7% and both the Gross Domestic Product (GDP) and Consumer Price Index are declining. The government could promote economic growth and address this economic situation by--
increasing government spending and increasing taxes.
increasing government spending and lowering taxes.
decreasing government spending and lowering taxes.
decreasing government spending and increasing taxes.
Which statement best explains the graph?
Increasing production of pens from 10 to 20 indicates economic growth.
A combination of 15 pencils and 20 pens can be produced by the firm.
The opportunity cost of increasing the production of pencils from 15 to 19 is 5 pens.
The opportunity cost of producing an additional pencil is always constant.
The graph shows the U.S. gross domestic product (GDP) for 2020. Based on this graph, the decrease in demand of goods and services was likely flowing from households to firms during which of the following timeframes?
From Q2 2020 to Q3 2020
From Q3 2020 to Q4 2020
From Q1 2020 to Q2 2020
From Q1 2020 to Q4 2020
