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WorksheetsEconomics and Personal Finance Final Exam
Total questions: 100
Worksheet time: 2hrs 40mins
In a supermarket, what primarily determines what products are stocked on the shelves?
Consumer demand and supply
Government directives
Custom and tradition
Central planning
In a hypothetical country, the government is in control of resources and production, and everything is centrally planned. What type of economic system does this country follow?
Market economy
Traditional economy
Command economy
Mixed economy
For the law of demand, as price rises, what happens to quantity demanded?
it goes up
it goes down
it stays the same
it is not effected
Consider a scenario where you are selling lemonade. According to the law of demand, what happens to the quantity demanded of your lemonade as you raise its price?
More people want to buy it
Fewer people want to buy it
The number of people wanting to buy it stays the same
The demand for lemonade is not affected
The amount of a good or service that is available to consumers
Supply
Demand
Saver
Spender
The point where supply and demand are balanced
shifters
equilibrium
surplus
shortage
A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?
The supply will probably go up
The supply will probably go down
Imagine a situation where a toy manufacturer produces more toys than the market demand at a certain price. What is this situation called?
shortage
fad
search costs
surplus
What happens to the market when the chocolate bars are priced at $4 each?
surplus
shortage
equilibrium
Which of the following would classify as complements?
Coke, Pepsi
tennis racket, tennis balls
coffee, tea
Iphone, Samsung Galaxy
Which of the following would classify as substitutes?
pet, vet bills
bread, butter
Dominos, Pizza Hut
phone, charger
At the concession stand, one fan buys two hot dogs. He eats the first one but can not finish the second one. What economic principle is being applied?
With high demand for World Series tickets, scalpers often take advantage and resell tickets at inflated prices. This situation highlights the impact of:
Surplus
Law of Diminishing Marginal Returns
Equilibrium Price
Black Market Activities
When the governing body of Major League Baseball imposes a maximum allowable ticket price for World Series games to ensure affordability for fans, what economic concept is being applied?
A policy that covers a renter's personal property against loss by theft, fire, or other hazards.
Security Deposit
Equity
Renter's Insurance
Principal
Fee that covers the cost of any future damage the renter might cause to the unit.
Material Resources
Renter's Insurance
Security Deposit
Interest
What is the initial amount of money borrowed in a loan?
Collateral
Interest Rate
Principal
Equity Share
What is the fee that the lending institution charges the buyer to borrow the money?
Principal
Earnest Money
Closing Costs
Interest
A partial payment of cash, made at the time of purchase, usually between 5% and 25% or more of the purchase price.
Down Payment
Equity
Closing Costs
Interest
This type of mortgage keeps the same rate of interest and the same payment for 15-30 years.
Graduated
Adjustable Rate
Fixed Rate
This type of mortgage changes based on the market. The interest rate may increase or decrease each year.
Adjustable rate
Conventional
Graduated
Mortgages are generally for ____ to ______ years.
5-10
10-20
15-30
15-20
If you had to give someone advice on buying a house, what would you recommend?
Buy a house you can afford.
Buy what you want, not what you need.
Always buy the largest, most expensive house you can afford.
When the bank pre-approves you for a mortgage amount, spend all of it on a house.
“Is the statement 'Buying a house is the most expensive purchase most people make' true or false?
The statement is TRUE because buying a house is a major expenditure for most individuals and families.
The statement is TRUE because most people spend at least 50 percent of their income on housing.
The statement is FALSE because most people spend more on cars and clothing than on housing.
The statement is FALSE because most people rent; only the wealthy can afford to buy a house.
What is an appraisal?
An unbiased professional evaluation of a home's value
An advertisement used to praise a property in order to sell it
What is the formal process called where your landlord terminates your lease and asks you to vacate your apartment within a period of time decided by local laws and statutes?
Eviction
Deed
Lease
Principal
A residential tenancy agreement is a contract between you (and your co-tenants) and the landlord or owner.
Lease
Mortgage
Rent
Deed
What is a disadvantage of renting a home?
The money you pay isn't going towards owning the house.
Renting is way more expensive than buying.
Renting makes you look irresponsible.
When renting, you are stuck in the home for a very long time.
Bailey needs to move to Boone, NC, to attend Appalachian University for 4 years. If dorms aren't available, what is her best (least expensive) housing option?
She should find a friend, and both of them should buy a house.
She should rent a 3-bedroom house for herself.
She should look for someone or some people who are renting and need a roommate to share the bills.
She needs to buy a condo.
A licensed professional who specializes in selling homes is known as?
HUD
Real Estate Agent
Escrow
Title Insurance Broker
The name for a renter is:
landlord
rentee
tenant
lease
The amount of money you “take home” on your paycheck after taxes is called your ______ pay.
gross
net
final
top
A measure of a person's credit risk is used by banks to decide whether they should give out loans. It typically ranges between 300-850.
Interest
Credit Score
Credit Card
Amortization Schedule
What you pay out of pocket before the insurance company pays your claim.
Premium
Claim
Loss
Deductible
Limit
Why is it important to have auto insurance?
Because the law requires it.
Because it helps limit financial losses when an accident occurs.
Because it helps you to be prepared for the unexpected.
Because it plays an important role in your financial security.
All of the above.
Why would the Fed want to raise interest rates?
to slow down inflation
to complete with foreign markets
to encourage mass production
to raise the minimum wage
In this form of capitalism, the government adopts a "hands-off" policy toward the economy.
laissez-faire capitalism
mixed economy
anarcho-capitalism
feudalism
What did money used to be backed by?
land
Oil
Gold
Crops
__________ is a U.S. government institution that provides insurance on depositor's accounts
Congress
Department of the Interior
FDIC
Department of Homeland Security
A market where existing conditions are driving stock prices down is known as a bear market.
Bear
Bull
Monkey
Mongoose
_____ is an investment strategy in which you spread your investment dollars among different sectors, industries, and securities to balance or reduce the level of risk?
Liquidity
Diversification
Splitting
Funding
Kelly purchased 5 shares of Nike stock for $70 a share in April 2012. In April 2015, she decides to sell the stock. The stock price at that time is $90 per share. What is her capital gain?
$20
$160
$100
$200
What is the best description of the relationship between risk and return?
The higher the risk, the lower the return
The lower the risk the greater the potential for return
Buy high, sell low
The higher the risk, the greater the potential for return
Which type of investment is the least risky?
stock
bond
mutual fund
savings account
What is a stock?
A stock is a type of investment that uses money from investors to purchase many different investment types.
A stock is an insured bank account with high risk.
A stock is a lending investment to the government or a company.
A stock is a share of ownership in a company.
Based on the image, what is the current trading price of McDonald's stock?
$188.50
$186.75
$24.43
$1.75
The name for a part of a business that is bought and sold on the stock market is:
Part
Market
Stocker
Share
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
Which of the below is an employer-based retirement plan that both employees and employers contribute to?
Traditional IRA
Roth IRA
401K
Pension
Abbreviation for a company listed on the stock market.
stock
stock exchange
price
ticker symbol
Why do most people buy stocks?
To help pay their bills.
It's an investment.
So that they don't go into debt.
It looks good on a loan application.
An overall rise in prices is called _____.
a yield
volatility
a dividend
inflation
Louis's dad pays a tax to the federal government each year based off the money he earns from his lawn mowing business. What type of tax does Louis's dad pay each year?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Curtis purchased a new pair of jeans for $18. When Curtis pays for his jeans his total is almost $20 because of taxes. Which type of tax does Curtis pay?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Your parents pay a tax each year of $3500 that is based off the value of your home. Which type of tax do your parents pay each year?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Jarrod was a contestant on a popular game show. Jarrod won a $1,000 prize on the show. Jarrod had to pay $200 of his winnings in taxes. Which type of tax did Jarrod have to pay?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Which of these is the money you earn BEFORE taxes?
Gross Pay
Net Pay
If you worked 40 hours per week at $10 per hour, what is your gross income for the week?
$227
$4000
$40
$400
Who primarily uses our tax money? (hint: choose 2 correct answers)
Your employer
The state government
The Federal government
Local Businesses
Taxes are collected by
Businesses
Parents
Foreign countries
Government
IRS stands for
Internal Revenge Service
International Revenue System
Internal Revenue Service
Inspection Ravioli Sauce
When using a credit card, you will be charged interest if the balance is not paid within 30 days.
True
False
What is the machine called that is used to withdraw money and that is found in shopping centers, in convenience stores, and outside financial institutions?
GWB (Great Wonderful Bank)
ATM (Automatic Teller Machine)
EBT (Easy Bank Teller)
AMM (Awesome Money Maker)
When you put money into a bank account for safe keeping, you are making a ...
deposit
withdrawal
expenses
The act of taking money out of a bank account is known as a ...
deposit
expenses
withdrawal
Amount of money spent on items needed is called an ...
expenses
variable expense
profit
Which of the following is an advantage of using a credit card?
Interest is charged for the use of a credit card.
Consumers can purchase things now, and pay for them later in the event of an emergency.
You could be a victim of identity theft.
What do we call the amount of money left over each month after you have paid all of your expenses?
Surplus
Straight cash homie
Debt
Diversification
