WorksheetsEconomics Midterm
Total questions: 33
Worksheet time: 2hrs 39mins
The study of how individuals, institutions, and society make choices under the conditions of scarcity is
allocation.
deregulation.
economics.
specialization.
Mr. Stevens owns a building in downtown Bentonville. He has considered opening a sporting goods store in the building but has also been approached by someone who would like to rent the space to open a gym. If Mr. Stevens decides to open his sporting goods store, what is the opportunity cost of this decision?
the opportunity to rent it to another tenant
the property tax he would pay on the building
the opportunity he has to run his own business
the profits he would make from his sporting goods store
Refer to the table provided and answer the following question: Based on the table, what is the marginal cost when the number of workers increases from 2 to 3?
8
9
10
11
A company is trying to decide how many workers to hire. They want to maximize profits. What is the maximum number of workers the company can hire to maximize profits while not having marginal costs exceed marginal revenue?
8
9
10
11
Which statement is a PRIMARY characteristic of a capitalist system?
graduated income tax
private ownership of property
equal distribution of resources
governmental regulation of business
When the amount of output produced by a given amount of inputs increases, the MOST LIKELY result is
overall productivity rises.
economic interdependence rises.
consumer spending on productive resources increases.
business spending on productive resources increases.
What does the acronym FAFSA mean?
Free Application for Free Student Aid
Federal Application for Free Student Aid
Free Application for Federal Student Aid
Federal Application for Federal Student Aid
FICA taxes are taken from a person's _______.
wages.
inheritance.
wages, but not tips if you work in a service industry.
income for salary-based, employees and not hourly-based employees.
Which quote BEST represents why a personal budget is important?
"Let justice be done though the heavens may fall." - John Adams
"What we obtain too cheap, we esteem too lightly" - Thomas Paine
"Beware of little expenses. A small leak will sink a great ship." - Benjamin Franklin
"Is life so dear or peace so sweet as to be purchased at the price of chains?" - Patrick Henry
checking account
savings account
loans to customers
All of these are functions of
banks
businesses
corporations
government
Which TWO credit cards would be the best choice for someone with GOOD credit?
1
2
3
4
How might fiscally responsible individuals use investments to meet financial goals?
Fiscally responsible individuals would not take the risk of investments.
Most investments have a guarantee of high returns in a short period of time.
Individuals delay the satisfaction from purchases now for possible greater returns later.
Investments give individuals greater returns now rather than delaying the satisfaction until a later date.
Your friend has just started a savings account that is currently paying 5% interest. If inflation is expected to be 7% this next year, your friend will be earning a
nominal return of 7% and a real return of 5%.
nominal return of 5% and a real return of 5%.
nominal return of 12% and a real return of 5%.
nominal return of 5% and a real return of -2%.
A regressive tax is BEST defined as a rate of tax
that goes up as income goes down
that goes up as income goes up
that stays the same regardless of income
that goes down for everyone each year
Carol is filing for bankruptcy. This means that Carol has
to pay inheritance tax for family money.
more debt than money to cover what is owed.
more funds in the bank than she has bills.
very little credit and has to use cash for goods and services.
Shanna's mortgage company requires insurance coverage. Which type of insurance would she need?
automobile
disability
life
property
At Norman’s last job, the small kitchen often was left in disarray at the end of the day because no one felt responsible for cleaning it. To solve this problem, Norman’s manager created a schedule, assigning each employee one day per month when he or she was responsible for cleaning the kitchen. When a similar problem arose in the break room at his new job, Norman suggested that his new coworkers follow a similar schedule. Norman understood the root cause of the problem because he
conducted research on it.
drew from personal experience.
considered a different perspective.
posed the problem as a question to be answered.
Which is NOT considered prohibited conduct under the FDCPA (Fair Debt Collection Practices Act)?
Misrepresentation or deceit to collect a debt.
Threatening arrest or legal action that is not permitted.
Contacting business owners in an effort to collect a debt.
Contacting consumers outside of the hours of 8:00 a.m. to 9:00 p.m. local time.
After realizing her credit card had been fraudulently used and unauthorized charges had been made, Stephanie called her credit card company. What action(s) will be taken by her credit card company when she reports her card as stolen?
Her current card will be canceled and a new one will be issued.
Her credit card privileges will be revoked for up to six months.
Her bank will be notified and a hold will be placed on her account.
She will be told to continue using her current card until it expires.
According to the graph, what is the correlation between return on investment in education and a person’s salary?
Earning a Professional degree provides the greatest weekly median earnings.
The greatest return on investment occurs as someone earns a high school diploma.
A person’s salary increases at every level as their level of education increases.
The smallest return on investment occurs as someone moves from an Associate’s degree to a Bachelor’s degree.
What is the relationship between number of years spent on education and a person’s unemployment rate?
Earning a degree at the highest level does not provide the lowest unemployment rate.
The likelihood of unemployment decreases at every level as someone’s level of education increases at every level.
Which statement BEST describes the benefit of creating a personal budget?
It can decrease your savings.
It can increase your spending.
It can help you make more money.
It can help you use money more wisely.
Coupons, "buy-one, get-one free" deals, sales, and discounts are
positive incentives encouraging people to spend money.
negative incentives encouraging people to spend money.
positive incentives discouraging people from spending money.
negative incentives discouraging people from spending money.
Of the following taxes, what is the name for the taxes that all homeowners must pay?
Sales Tax
Income Tax
Which executive Department would have the task of enforcing laws designed to protect the rights of consumers?
Energy
Justice
Labor
State
Shifting from producing 500 scarves and 225 sweaters, to producing 100 scarves and 350 sweaters would
result in an opportunity cost of 200 scarves
result in an opportunity cost of 200 sweaters
be impossible due to overutilization of resources
be an inefficient use of resources
Why do investors require higher returns for some investments?
to compensate for less risk
to compensate for greater risk
to invest less funds for less risk
to offset the amount of money invested
A loan used to purchase an automobile.
mortgage
credit cards
car loan
student loans
personal loans
A loan used to fund projects or business ventures.
mortgage
credit cards
car loan
student loans
personal loans
A type of credit used by consumers for daily purchases.
mortgage
credit cards
car loan
student loans
personal loans
A loan used to purchase a home.
mortgage
credit cards
car loan
student loans
personal loans
A loan used by consumers to fund higher education.
mortgage
credit cards
car loan
student loans
personal loans
A scam by which an e-mail user is tricked into revealing personal or confidential information which the scammer can use illicitly is known as
scam
phishing
pyramid scheme
pump and dump
