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Chapter 1.2 The Economy and Your Education

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the economy?

a)

Will never change.

b)

All the activities related to making and distributing goods and services

c)

The government reducing poverty

d)

The international trade

2.

Why is it important for you to understand the economy?

a)

It is needed to understand when to save

b)

It is needed to understand when to spend

c)

It is important to understand when you can spend and when to save.

3.

Explain the concepts of supply and demand within a market economy.

a)

It is based on supply

b)

It is based on demand

c)

Prices are based on supply and demand. These two forces work together to create and equilibrium price.

d)

The growth of the economy.

4.

What is retraining?

a)

Learning new and different skills in order to prepare for a new career field

b)

YouTube

c)

Instagram

d)

SnapChat

5.

What is the business cycle?

a)

Prices decline.

b)

Growth periods, spend less and save.

c)

Learning new skills

d)

The ups and downs of the economy: recover, peak, recession and trough.

6.

List the four stages of the business cycle.

a)

pre-industrial, urbanizing/industrializing, mature industrial and post-industrial

b)

prophase, metaphase, anaphase, telophase.

c)

heavy, light, radiation, present day era

d)

peak, recession, trough, recovery

7.

How does the business cycle affect you as an individual?

a)

During growth periods you should spend less and save

b)

During a decline, you can find good values if you have cash to spend

c)

Both are correct.

8.

Explain why people tend to spend more money during economic growth.

a)

Prices are out of control.

b)

During economic growth people spend money because they are optimistic and times are good.

c)

During economic growth people spend money because they are pessimistic and times are bad.

d)

Prices decline.

9.

Explain why it is important to have cash (spending power) in a recession.

a)

The banks are going bankrupt.

b)

People are stealing money.

c)

Prices decline so if you have cash you can find the best values

d)

You can store the money in your mattress.

10.

How is tuition different from fees?

a)

They are the same

b)

Tuition is for instruction at a school and fees are special expenses.

c)

Tuition is for special expenses and fees are for instruction at a school .

11.

To attend an accredited college means that the college is certified to meet educational quality standards.

a)

True

b)

False

12.

List ways that students can pay for their post-secondary education.

a)

Financial Aid and Loans

b)

Grants and work study programs

c)

Scholarships, work while attending school, and joining the military

d)

All are true

13.

What is a subsidized loan?

a)

One in which you pay interest until you have graduated or are no longer inrolled in school.

b)

A loan that starts charging interest as soon as you use it to pay for education.

14.

What is a unsubsidized loan?

a)

One in which you pay interest until you have graduated or are no longer inrolled in school.

b)

A loan that starts charging interest as soon as you use it to pay for education.

15.

Living expenses that you might have as part of your post-secondary education may include food, rent, clothing, and transportation.

a)

True

b)

False