Worksheetssemester 1 exam
Total questions: 46
Worksheet time: 53mins
Which of the following is not one of the three basic economic questions?
How will it be produced?
What will be produced?
For whom will it be produced?
What will be charged?
Which of the following is, or could be, an example of a traditional economy?
A small, rural community
Spain
The Soviet Union
North Korea
Which of the following has a command economy?
The United States
England
North Korea
Spain
What is meant by laissez faire?
The government should do what it can to help the economy
The economy is most secure when controlled by corporations
The government should let the economy do its own thing
People should follow in the footsteps of their parents and grandparents
Which of the following has a mixed market economy?
A small rural community
Norway
North Korea
The Soviet Union
Which of the following is not true about scarcity?
Because resources are scarce, it can be challenging to figure out the best way to use them.
In economics, scarcity refers to the idea that the wants and resources of society are limitless.
Because money is scarce, you have to make decisions about how to spend it.
Scarcity means something is limited.
Which of the following is an example of an opportunity cost?
If you spend your time practicing tennis, you do not have enough time to go to your friend's house. Practicing tennis is your opportunity cost.
If the restaurant purchases new tables, it does not have enough money to purchase new cash registers. The new tables are the opportunity cost.
If the government spends tax money on fixing roads, it does not have enough money to purchase new lights for the library. The newly paved roads are the opportunity cost.
If you buy a pair of jeans, you do not have enough money to buy a new pair of shoes. The shoes are your opportunity cost
In economics, the term marginal means additional.
True
False
If your decision results in more costs than benefits, you are likely making a bad decision.
True
False
Suppose you are planning to go on Spring Break with your friends. You have almost saved enough money. Your parents offer for you to come with them on vacation instead. They will pay your way. A marginal benefit of going on vacation with your friends is that you have to work an extra shift to make enough money for your trip.
True
False
Which of the following is not a tangible resource?
Grain
Steel
Ideas
Computer
Which of the following is not true about the factors of production?
They are used to produce goods and services.
The categories include natural resources, human resources, capital resources, and entrepreneurship.
Economic growth occurs when the quantity and quality of the factors of production decrease.
They are the building blocks of all economies.
Which of the following is true about natural resources?
They can be renewable or exhaustible
Renewable resources replenish very slowly or not at all.
Nonrenewable resources include water, soil, trees, and sunlight.
Renewable resources include gold and coal.
Which factor of production refers to tangible resources like the physical number of workers available or intangible resources like skills, education, and experience of workers?
Natural Resources
entrepreneurship
capital resources
human resources
Which of the following is an example of a capital resource?
Factories
Education of workers
Iron
Ideas used to start a business
Which of the following is not true of entrepreneurs?
They take risks
They are not marginal costs or benefits for them to consider
They use natural, human, and capital resources to create something with value.
They use ideas and abilities to start a business or produce a new product.
Is the following an incentive or a disincentive? A buy-one-get- one free sale on shoes.
Incentive
Disincentive
Which of the following is considered an incentive?
Offering a rewards card to use at the grocery store.
Providing lower wages to highly skilled workers.
Providing a low return on investment to investors.
Offering customers a low interest rate for opening a savings account.
Why does the U.S. government regulate competition?
To keep the economy stable and stop innovation.
To stop innovation and keep prices of goods from rising too high.
To protect consumers and stop innovation.
To keep the economy stable and protect consumers.
The U.S. dollar and the ____ are the two major global currencies which the countries typically set their exchange rates against.
Australian dollar
European euro
Bitcoin
Chinese yuan
Daniela is on vacation in Belgium, and she wants to buy one of their famous Belgium waffles. The waffles cost 3 euros. The current exchange rate is 1.02 euros to the U.S dollar. How many U.S dollars will Daniela be spending on the waffles?
$1.02
$3.06
$3.00
$2.94
On your trip to Israel, the exchange rate went from 3.57 to 3.61 Israeli shekels to the U.S. dollar. What does this mean?
The dollar got stronger and the shekel got weaker, so you can buy more Israeli goods.
The dollar got stronger and the shekel got weaker, so you can buy fewer Israeli goods.
The dollar got weaker and the shekel got stronger, so you can buy fewer Israeli goods.
The dollar got weaker and the shekel got stronger, so you can buy more Israeli goods.
Which of the following would not be considered a modern-day medium of exchange?
Paper money
Coins
Crypto
Barter
Oliver has done a lot of research, and found a tablet he loves that is imported from China to the United States. He arrived at the electronics store and discovered that the tablet costs more than it did last week. What might be a reason for the price increase?
The U.S. dollar is now stronger than the Chinese yuan, so the price of imports has increased.
The U.S. dollar is now stronger than the Chinese yuan, so the price of exports has decreased.
The U.S. dollar is now weaker than the Chinese yuan, so the price of exports has increased.
The U.S. dollar is now weaker than the Chinese yuan, so the price of imports has increased.
What is the U.S. government's main source of income?
Tax revenues
Treasury bonds
Charitable donations
Appropriations
What is the formula for calculating net worth?
net worth = assets + liabilities
net worth = assets - liabilities
net worth = liabilities - assets
net worth = liabilities x assets
Jenny has $30,000 in assets, but she owes $3,000 on her car loan. What is her net worth?
$10
$27,000
$33,000
$30,000
Which of the following is not true about net worth statements?
It is a financial statement that outlines your assets and liabilities to help you calculate net worth
The final section is for subtracting liabilities from assets.
One section is used to list short-term and long-term liabilities.
It only lists short-term assets.
Trey has the following assets and liabilities:
• Auto loan: $12,000
• Cash: $700
• Home value: $250,000
• Student loan: $17,000
What are his total assets?
$29,000
$221,000
$279,000
$250,700
Eden put together the following Personal Net Worth Statement. What are her total liabilities?
PERSONAL NET WORTH STATEMENT
Assets:
Cash: $5,000
-Investments Accounts: $11,000
- Home Value: $325,000
- Car Value: $18,000
-Jewelry: $2,000
Liability:
- Auto Loan: $7,000
-Credit Card Debt: $2,000
-Mortgage: $300,000
-Student Loan: $15,000
$37,000
$361,000
$685,00
$324,000
Eden put together the following net worth statement. What is her net worth?
PERSONAL NET WORTH STATEMENT
Assets:
• Cash: $5,000.
• Investments Accounts: $11,000
• Home Value: $325,000
• Car Value: $18,000
• Jewelry: $2,000
Liability:
• Auto Loan: $7,000
• Credit Card Debt: $2,000
Mortgage: $300,000
• Student Loan: $15,000
$324,000
$361,000
$685,000
$37,000
If income taxes increase, you will take home less money from each month's paycheck.
True
False
FICA taxes contribute to your Social Security and Medicare. So, when FICA taxes decrease, you take home more money today, but will not have as much money saved when you retire.
True
False
When interest rates are low, it is more cost effective to buy a home than when interest rates are high.
True
False
Which person will receive the most money from Social Security when they retire?
Tara, who worked for twenty years and decides to start receiving Social Security at sixty-two.
Luke, who worked for forty years and decides to start receiving Social Security at sixty-two.
Ebony, who worked for forty years and decides to start receiving Social Security at seventy.
Juan, who worked for twenty years and decides to start receiving Social Security at seventy.
Which of the following is an example of how money is used today?
Farmer Jones trades his chickens in return for shoes for his family.
Alice uses gold coins to buy clothing.
Alicia gives $20 of paper money to the pharmacist for medication.
José trades his paper receipt to get his car washed.
Which of the following does not factor into how money is limited?
Money can be divided into smaller amounts in various ways.
Only the government can print money.
Only the government can coin money.
The government controls the amount of money in circulation.
Since money is a ____ you can use it to buy goods and services.
medium of exchange
controlled currency
unit of account
store of value
The Federal Open Market Committee (FOMC) makes decisions that influence the amount of money and credit, known as the ____, in the U.S. economy.
Bank runs
Government securities
Money supply
Interest rates
By monitoring interactions between investors, savers, borrowers, and businesses the Fed is trying to ___.
keep interest rates low
stabilize the U.S. financial system
give consumers a forum to file their complaints about financial institutions
act as the "bank" to local banks
What might the Fed do to loosen the money supply in the U.S.?
Set a discount rate
Borrow money from independent banks
Raise the interest rate
Lower the interest rate
A "Commercial Bank" is a non-profit financial organization that has member-owners. While it tends to be located only regionally or locally, its service is typically exceptional.
True
False
Most banks do not require a minimum amount of money to open a checking account.
True
False
When ordering checks, the fee for those checks can be automatically withdrawn from your checking account.
True
False
If you use your ATM card at a bank that is not yours, you may be charged a fee.
True
False
Which of the following are benefits of online banking? Select all that apply.
Customers can visit a brick and mortar building.
Customers can do banking 24 hours a day.
Customers do not have to keep track of paper statements.
Customers can set an alert to know when their balance is low.
