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Economics Quiz

Total questions: 183

Worksheet time: 2hrs 53mins

Name
Class
Date
1.

What are the four factors of production?

a)

A. Needs, wants, choices, trade-offs

b)

B. Workers, management, entrepreneurs, capital

c)

C. Land, labor, capital, entrepreneurship

d)

D. Human capital, physical capital, intellectual capital, consumer goods

2.

Which of the following is NOT a benefit a business will likely attain from physical capital?

a)

A. Increased productivity

b)

B. Better entrepreneurial knowledge

c)

C. Fewer natural resources are required

d)

D. Lower costs

3.

Why is there scarcity even in an affluent country like the United States?

a)

A. Entrepreneurs are scarce and companies need leaders

b)

B. Resources are limited but wants are unlimited

c)

C. Some people are poor while others are wealthy

d)

D. Wants are limited but needs are unlimited

4.

Which of the following is an example of a land resource that a person who owns a restaurant would need?

a)

A. The servers who wait on customers

b)

B. The farmer who grows the vegetables served at the restaurant

c)

C. The water used for drinking and cleaning

d)

D. The building where the restaurant is located

5.

Which of the following is true about the photo shown here?

a)

This man is improving his human capital by learning a skill

b)

This man is using up his physical capital by working hard

c)

This man is providing a service to the hospital

d)

This man is gaining financial capital by working

6.

Which of the following is an example of scarcity rather than shortage?

a)

Extremely hot temperatures lead to increased air-conditioner use and power outages

b)

There aren’t enough software engineers to fill all the job openings in Silicon Valley

c)

Newly discovered Van Gogh paintings are put up for auction and sell for millions

d)

During the holiday season, an outfitter runs out of skis.

7.

Because of scarcity, every decision involves a

a)

cost/benefit analysis

b)

trade-off

c)

marginal cost

d)

marginal benefit

8.

An opportunity cost is

a)

the best alternative given up when a decision is made

b)

the worst alternative that is given up when a decision is made

c)

a choice that is made when no alternative is very good

d)

the cost of making decisions related to producing goods

9.

In a cost/benefit analysis, what would be the benefit of taking the Dallas North Tollway instead of Routes 75 and 380?

a)

That route would cost less in tolls

b)

That route would cost more in tolls

c)

That route would require more travel time

d)

That route would require less travel time

10.

Based on this infographic, what is the marginal cost of building the 1001st toy in this factory?

a)

$2

b)

$10

c)

$2,000

d)

$10,000

11.

Shannon has decided to spend less time on social media because she needs to improve her grades. What might be some marginal benefits of her decision? List at least 3.

4 lines
12.

Describe a situation (using 1-2 complete sentences) in which there would be a shortage.

4 lines
13.

Which of the following is NOT a capital good?

a)

A. A bulldozer

b)

B. An oven at a bakery

c)

C. Automated machines

d)

D. A cupcake

14.

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) ________ good.

4 lines
15.

Sugar and flour that are purchased for a bakery are classified as

a)

A. Consumer goods

b)

B. Intermediate goods

c)

C. Capital goods

d)

D. Physical capital

16.

A ______ uses imagination, innovative thinking, and skills needed to produce a new good or service.

a)

Producer

b)

Entrepreneur

c)

Consumer

d)

Decision maker

17.

When using the PACED decision-making process what does the E stand for?

a)

Entrepreneur

b)

Evaluate

c)

Evidence

d)

Emulate

18.

Someone has done work for someone else in exchange for payment. What has been provided?

a)

Good

b)

Human capital

c)

Service

d)

Production

19.

List the 5 categories of needs.

4 lines
20.

A person or organization that makes use of a good or service to meet a personal need or want.

a)

Entrepreneur

b)

Producer

c)

Consumer

d)

Provider

21.

Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true?

a)

All 3 cards are completely different

b)

Debit cards and prepaid debit cards are the same

c)

Debit cards and credit cards are the same

d)

All 3 cards are completely the same

22.

The average APR for a payday loan is closest to ...

a)

4%

b)

14%

c)

40%

d)

400%

23.

Which of the following statements comparing credit and debit cards is TRUE?

a)

Far more businesses accept credit cards than debit cards

b)

Credit cards pull money directly from your bank account, while debit cards get their money from Visa or Mastercard

c)

Credit card companies provide you with a monthly statement, while debit cards do not

d)

With debit cards, you're spending your own money at point of sale, but with credit cards, you're getting a loan that you need to pay back later

24.

Which of the following is most likely to represent a fixed rate, secured debt?

a)

A student loan

b)

A credit card

c)

A prepaid debit card

25.

Which of these statements best explains why it's often a good idea to pay more than the monthly amount due on an amortized loan?

a)

Every time you pay extra, the lender will reduce the interest rate they're charging by a small amount

b)

The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly

c)

The extra payment will be applied to the interest you owe, which will reduce the overall cost of your loan

d)

Amortized loans typically have much higher interest rates than credit cards, so they're the best place to put your extra cash

26.

If you are having trouble making auto loan payments and are really following a tight budget, which recommendation below represents the WORST advice?

a)

Find an extra source of income by taking a second job, working longer hours, or borrowing from family if they can afford to help

b)

Stop making payments on some of your debts so you can focus on getting the most expensive or largest debts under control

c)

Continue making all payments and call your lenders and see if you can negotiate lower monthly payments, lower interest rates, or longer terms

d)

Explore whether a free or non-profit credit counseling service could help

27.

When loans are amortized, monthly payments are _______, while the amount of your monthly payment applied to interest _______ and the amount of your monthly payment applied to the principal _______ over time.

a)

a. Constant, Increases, Increases

b)

b. Constant, Decreases, Increases

c)

c. Variable, Decreases, Increases

d)

d. Variable, Decreases, Decreases

28.

Which of the following is true about fixed and adjustable-rate mortgages?

a)

a. Fixed-rate mortgages have a constant payment every month, but an interest rate that increases throughout the term of the loan

b)

b. Fixed-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

c)

c. Adjustable-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

d)

d. The two mortgages work the same way but are called different names depending if they come from a bank or a credit union

29.

Which of these credit payback strategies would lead to the HIGHEST overall cost?

a)

a. Paying off your credit card bill in full every month

b)

b. Paying 20% of your credit card balance every month on time

c)

c. Making the minimum payment (3% of your credit card balance) every month on time

d)

d. Making the minimum payment (3% of your credit card balance) every month with an occasional late payment

30.

Denise took out a payday loan for $300 in August. By February of the next year, she was able to pay back the loan, but she had spent a total of $750 doing so. What’s the most likely story of how this happened?

a)

The minimum monthly payment for payday loans is usually only $10 or $15, so a lot of interested accumulated

b)

Upfront, Denise knew there would be $450 of fees attached to the loan, but she took out the loan anyway

c)

Payday loans must be paid in full within two weeks, and if not, the only option is to renew the loan for a high penalty fee, which she did approximately 12 times

d)

Denise not only paid the $300 she owed, but she prepaid an extra $450 in case she needs another loan in upcoming months

31.

Taylor is about to go car shopping, and she has $5000 saved that she can use for a down payment while still having extra cash in her emergency fund. She expects the exact model car she’s looking for to cost $35,000. If her top priority is having the lowest monthly payments possible, which advice should she follow?

a)

Put in $0 for your down payment, and choose a loan with a short term length

b)

Put in $2500 for your down payment, and choose a loan with a short term length

c)

Put in $3500 for your down payment, and choose a loan with a long term length

d)

Put in $5000 for your down payment, and choose a loan with a long term length

32.

Reading through a credit card’s Schumer Box, you see the APR for a specific card is set at 9.99% - 23.99%. Which statement is true?

a)

The APR will vary between 9.99% and 23.99% based on your credit score

b)

The APR is fixed at 23.99% for all cardholders

c)

The APR is fixed at 9.99% for all cardholders

d)

The APR will vary between 9.99% and 23.99% based on the market rate

33.

What is an advantage of using a credit card?

a)

It will not affect your credit score or credit history

b)

Since it is tied directly to your checking account, it prevents you from spending money you do not have

c)

If you need to carry a balance, the interest rates are generally quite low (less than 5%)

d)

You can make an emergency purchase that you otherwise don’t have the money to pay for right now

34.

Credit card disclosure: "Your due date is at least 25 days after the end of the billing cycle. We will not charge you interest on new purchases provided that you have paid your previous balance in full by the due date each month." Identify the true statement.

a)

If you make the minimum payment on your card within the 25 day period, the credit card company will not charge you interest

b)

If you pay your previous balance in full after the due date, the credit card company will not charge you interest

c)

25 days is an exceptionally long period without paying a credit card bill

d)

The 25 days after the end of the billing cycle is referred to as the grace period

35.

A loan with a shorter term length will have ________ monthly payments, and you will pay ________ in total interest.

a)

higher, less

b)

higher, more

c)

lower, less

d)

lower, more

36.

Select the statement below that accurately describes a characteristic of a credit card.

a)

You owe the same payment every month

b)

You must have money deposited into a checking account to use the credit card for purchases

c)

Making full payments on-time every month is the only way to avoid interest charges

d)

They do not charge interest

37.

Which of the following statements is CORRECT about secured loans?

a)

They are a good choice to use for student loans

b)

If the borrower does not make payments, the lender can repossess the item

c)

In the event of default, the borrower loses nothing except for the down payment

38.

An excellent credit score will help with which aspect of car financing?

a)

Bargaining for a great sales price

b)

Receiving a large down payment

c)

Qualifying for a low interest rate

d)

Having a wide selection of term lengths

39.

As a young adult, all of the following are good strategies for building credit, EXCEPT:

a)

Open a credit card, with your parent or guardian as a cosigner

b)

Take out a payday loan

c)

Become an authorized user on a credit card used by your parent or guardian

d)

Open and use a secured credit card

40.

Amy and Chuck each buy a house in the same neighborhood for $250,000. Amy's monthly mortgage payment is $400 more per month than Chuck's. Which one of the following statements could explain this difference?

a)

Amy chose a shorter term for her mortgage, so her monthly payments are higher

b)

Amy made a larger down payment, so her monthly payments are also larger

c)

Chuck chose a shorter term for his mortgage, so his monthly payments are also lower

41.

Why are payday loans so much easier to qualify for than traditional bank loans?

a)

Payday loans are only used by affluent households, and the banks know they have enough money to cover them

b)

Payday loans are just another word for direct deposit, and almost all employers offer their employees direct deposit instead of a paper paycheck

c)

Payday loans require proof of employment or other regular income but not a credit check

d)

Payday loans are typically for such small dollar amounts that no one cares if you repay them or not

42.

Trudy tells her mom that she wants to buy a house within two years of graduating from college. Her mom says Trudy will need a down payment first. What is a down payment?

a)

A large sum of money you pay when taking out a mortgage so that the principal of your loan is smaller

b)

A specific type of tax advantaged bank account used for saving money to buy a house

c)

The first year’s worth of property taxes, held in reserve

d)

A prepayment to a real estate agent so that they will start helping you house hunt

43.

Duc has a credit card with a $1000 credit limit. His outstanding balance is currently $800. What is the maximum amount he can now spend on this credit card?

4 lines
44.

Why would credit card companies prefer that their cardholders make the minimum monthly payment every month rather than paying their total balance in full?

a)

This is required by federal law for tax purposes

b)

This allows the card holder to pay their bill quickly and close the card when they're ready

c)

This enables the credit card company to make more money

d)

This helps cardholders develop financial independence

45.

What are the two most important factors in calculating your credit score?

a)

Payment history and types of accounts

b)

Amounts owed and length of credit history

c)

Payment history and total debt

d)

Length of credit history and new credit inquiries

46.

Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT:

a)

Reducing spending by canceling some of her streaming subscriptions

b)

Taking extra shifts at work to increase her income

c)

Making more than the minimum required payment on her debt

d)

Applying for another credit card to use in case she runs out of cash paying off her debt

47.

All of the following would show up on a credit report EXCEPT...

a)

Salary of your current job

b)

Payment history of your car loan

c)

Credit card payment history

d)

Student loan activity

48.

Which of the following methods of getting your credit score would involve paying a fee?

a)

Checking your credit card or loan statement

b)

Talking to a non-profit counselor

c)

Checking creditkarma.com

d)

Getting a score from myFICO.com

49.

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

4 lines
50.

Melvin is 19 years old and wants to begin establishing a credit history. Which action should he take to meet that goal?

a)

Always say "credit" when asked "credit or debit?" at a store

b)

Ask his parents to cosign a credit card or add him as an authorized user on their credit card

c)

Any time he borrows money from a friend or family member, be sure to pay it back promptly

d)

Take out some private student loans, even though he doesn't need them because he has grants and scholarships

51.

Which of the following individuals or groups would be the LEAST likely to look at your credit score?

a)

Someone interviewing you for a job

b)

Credit card companies

c)

An insurance company reviewing your applicant for auto insurance

d)

A bank representative who is helping you open a savings account

52.

You have a credit card that you use regularly for small purchases with the goal of improving your credit score. Which strategy would have the GREATEST positive impact?

a)

Use less than 30% of the credit limit and pay it off in full every month by the due date

b)

Always carry a balance from month to month

c)

Regardless of how much your balance is, make the minimum payment required on your credit card every month by the due date

d)

Put the credit card in a drawer and don't ever use it

53.

What strategy should you use to pay off multiple sources of debt if you want to pay the lowest amount of interest over time?

a)

Snowball method

b)

Make minimum payments

c)

High rate method

d)

Consolidate multiple debts into one new loan

54.

Who tracks all of your credit information?

a)

Credit reporting agencies (Equifax, Experian and TransUnion)

b)

Federal government

c)

Consumer Financial Protection Board (CFPB)

d)

Lenders

55.

What is the general timeline to establish your first credit score?

a)

As soon as you apply for a credit card or loan

b)

Six months after you first actively use your credit

56.

When does your credit score start to improve?

a)

Once you pay off a significant portion of your outstanding debt

b)

Once you reach a certain age

57.

You find an error on your credit report: Your credit card account indicates that you are 60 days late on your payment but you have bank records indicating that you have always made on-time payments. What should you do FIRST?

a)

Contact the credit card company to have them fix it

b)

Contact the credit reporting agency

c)

Wait a few weeks to see if it gets resolved

d)

Call the police to report the possible identity theft

58.

Which of the following things should you have ready when contacting a credit reporting agency to report an error on your credit report?

a)

Your preferred payment method to pay for fixing the error

b)

A list of all of your financial accounts and balances

c)

An explanation of the mistake and any evidence you have supporting your claim

d)

References from a non-family member vouching for your creditworthiness

59.

Which of the following could have a NEGATIVE impact on your credit score if done in a short period of time?

a)

Paying your bills on-time

b)

Paying down balances on your credit card accounts

c)

Decreasing your utilization of credit

d)

Applying for multiple credit cards

60.

Which best describes the Debt Snowball method for paying off debt?

a)

Only make payments on your smallest debt first, then move on to your second smallest debt, and so on

b)

Once your debt "snowballs" out of control, hire a certified credit counselor to help get your finances back on track

c)

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the highest balance

d)

Make the monthly minimum payments on all your debts, and then put any extra cash toward the debt with the lowest balance

61.

Which of these represents a potential consequence of neglecting to pay your federal student loans?

a)

Wages or tax refunds can be garnished

b)

Passport revocation

c)

Driver's license suspension

d)

Termination from your job

62.

What benefits do you receive by taking out a loan with a cosigner?

a)

You don’t get penalized for late payments

b)

You get a discount on future loans after this one is paid off

c)

You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

d)

You automatically get the same credit score as the cosigner once the loan is paid off

63.

You're paying your credit card bill and your student loan payment each month, but you're falling behind on your auto loan payment. Which friend's advice could have a NEGATIVE impact on your credit score?

a)

Jonanie says, "Call the auto lender and see if you can negotiate a lower monthly payment or some other deal."

b)

Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."

c)

Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."

d)

Betty says, "Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential."

64.

Which response best completes the sentence "It's best to begin establishing credit when you're young because _____"?

a)

Accessing credit only becomes more expensive as you get older

b)

Negative marks on your credit report go away faster for younger borrowers

c)

Credit scores are free for anyone under the age of 25

d)

You will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card

65.

The amount you can charge to a secured credit card is limited by...

a)

Your credit score

b)

The amount of money you deposit into an account as collateral

c)

The total amount of money across all your bank accounts

d)

How long you've had an account with the bank

66.

Which free credit report service is authorized by federal law but only accessible once per year?

a)

AnnualCreditReport.com

b)

Credit Karma

c)

Credit Wise

d)

Wallet Hub

67.

How can your credit score impact your financial well-being?

a)

Only consumers with high scores are approved for credit

b)

Consumers with low scores get lower interest rates on loans than those with high scores

c)

Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be

d)

It generally has no impact on your financial situation

68.

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

a)

Dining out at local restaurants

b)

Loan payment on a new car

c)

Expenses for new clothes

d)

Postponing a purchase for a big-screen TV

69.

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

a)

6 months

b)

1 year

c)

2 years

70.

What is the primary benefit of having a higher credit score?

a)

Access to higher loan amounts only

b)

Lower interest rates on loans and credit cards

c)

Ability to open as many bank accounts as you want

d)

Exemption from paying taxes

71.

What is a major risk associated with taking out multiple payday loans?

a)

Improvement of your credit score

b)

Decrease in overall debt amount

c)

Getting trapped in a cycle of debt due to high interest rates and fees

d)

Easier access to mortgages

72.

Which of the following is NOT a recommended method for improving your credit score?

a)

Paying bills on time

b)

Maintaining high balances on your credit cards

c)

Keeping old credit accounts open

d)

Limiting the number of new credit inquiries

73.
Your capacity to borrow, or the maximum amount of money you can borrow.
a)
Credit Card
b)
Credit
c)
Line of Credit
d)
Revolving Credit
74.
Your past record of making payments on your liabilities. Good credit means you have a history of paying your debts on time.
a)
Credit
b)
Credit Rating
c)
Credit History
d)
Line of Credit
75.
The amount borrowed.
a)
Loan
b)
Budget
c)
Principal
d)
Debit Card
76.
the total of all goods and services produced in a nation in a given year.
a)
Economic Indicator
b)
Consumer Price Index
c)
Rate of Return (ROR)
d)
Gross Domestic Product
77.
measures the rate of inflation by monitoring the average change in the price of several hundred goods and services in the country
a)
Prime Rate
b)
Gross Domestic Product - Economic Growth
c)
Consumer Price Index
d)
Time Value of Money
78.
Things that are not necessary for survival
a)
Needs
b)
Wants
79.
Things that are essential to life
a)
Wants
b)
Needs
80.

Jennifer works for the Pepsi company as a truck driver. What type of resource is Jennifer?

a)

Capital Resource

b)

Human Resource

c)

Natural Resource

d)

Entrepreneur

81.

Which of the following is true about supply and demand?

a)

If demand is greater than supply, prices are lower.

b)

If supply is greater than demand, prices are lower.

c)

If supply is equal to demand, the prices are lower.

d)

If supply is greater than demand, the prices are higher.

82.

Why do countries have currency?

a)

So people can earn more money.

b)

So people can buy goods and services

c)

So people have a way to pay taxes.

d)

So people can trade labor for other goods and services.

83.

Ben needs to study after baseball practice for his math test tomorrow. However, the team said they were going to hang out and get ice cream afterwards. If Ben goes for ice cream, what is his opportunity cost?

a)

Ben's growing friendships with his teammates.

b)

Ben's score on his Math test.

c)

Ben's ability to improve his baseball skills.

d)

Ben's teammates will call him a nerd.

84.
A creditor may deny credit because of
a)
bad credit history
b)
age
c)
marital status
d)
race
85.
The quantity of a product that producers are willing and able to make available for sale at various prices over a given time is said to be _________.
a)
surplus
b)
supply
c)
demand
d)
shortage
86.
The government defines this as any form of money, property, or services that you receive.
a)
debt
b)
needs
c)
wants
d)
income
87.

The intersection of the supply curve and the demand curve shows

a)

supply

b)

demand

c)

equilibrium price

d)

shortage

88.
When Kyjuan attempted to borrow money at the bank, he learned that his credit score is low.  Which statement best describes what this is likely to mean for Kyjuan?
a)
The interest rate on his loan will be lower, since his credit score is low
b)
The purchase price of the item he needs the loan for will be higher due to his low credit score
c)
The monthly loan payments will be lower due to his lower credit score
d)
The interest rates on his loan will be higher, since his credit score is low
89.
In Terms of credit, what does APR stand for?   
a)
Annual Penalty Rate
b)
Annual Payoff Rate
c)
Annual Payment Rate
d)
Annual Percentage Rate
90.
Interest is:  
a)
The cost of borrowing money 
b)
A good thing to have to pay
c)
The amount of money that you borrow to buy something 
d)
 A word that we used in class but has no real meaning 
91.
For the law of demand, as price rises, what happens to quantity demanded?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
92.
For the law of supply, as price rises, what happens to quantity supplied?
a)
it goes up
b)
it goes down
c)
it stays the same
d)
it is not effected
93.
If a price is above equilibrium price, it creates a...
a)
shortage
b)
surplus
c)
market price
d)
demand
94.
When the supply of a product or service goes up and the demand stays the same the Price will typically do what? 
a)
rise
b)
fall
c)
stay the same
d)
Consumer
95.
a person or company that makes, grows, or supplies goods to sell is called the?
a)
damand
b)
price
c)
producer
d)
shortage
96.

What is a credit score?

a)

A number used to determine how much credit to extend to person

b)

A measure used to indicate a person's gross wealth

c)

A reward system that is based on the number of credit cards a person has

d)

A formula solely on a person's earnings

97.

Purchases made with your debit card are usually:

a)

Deducted immediately from your checking account

b)

Deducted from your credit card balance

c)

Added to your credit card balance

d)

Put on your credit card bill as a cash advance

98.

Which of the following are true about supply and demand?

a)

If the demand is greater than supply, then prices are lower

b)

If supply is greater than demand, then prices are lower.

c)

If supply is equal to the demand, the prices are higher.

d)

If supply is greater than demand, then prices are higher.

99.

Makenzie has been saving her money for a new phone. She has enough to buy it, but her old phone still works just fine. What is Makenzie's opportunity cost if she decides to go ahead and buy the new phone?

a)

Makenzie will have a smaller amount of savings.

b)

Makenzie will have two phones that she can use.

c)

Makenzie will have a new phone.

d)

Makenzie will have more money than she did before buying the new phone.

100.

Tim needs to study for his math test. However, his friends have texted that they are meeting at the community pool to hang out. If Tim goes with his friends, which of the following is an opportunity cost?

a)

Tim's friends will give him a hard time for not joining them

b)

Tim's score on his math test

c)

Tim's lack of support from his friends.

d)

Tim's ability to improve on his swimming

101.

Economics is about allocating resources to produce and distribute which of the following?

a)

outcomes and properties

b)

wages and profits

c)

goods and services

d)

consumers and producers

102.

Which economic indicator would be most useful for figuring out how many goods are being sold to consumers?

a)

Consumer Price Index

b)

retail sales

c)

new housing construction

d)

gross domestic product

103.

these three things describe a traditional economy:

a)

barter system, so trade without currency, based on exchanging goods/services for other goods/services

b)

groups exchanging goods on a local/tribal basis

c)

mainly before world trade/travel

d)

the government controls all trade

104.

________ uses tax revenue from individuals and businesses to provide public goods and services.

a)

Individuals

b)

Government

c)

Businesses

d)

Private Financial Institutions

105.

The want or willingness a consumer has to purchase a good or a service is called?

a)
shortage
b)
supply
c)
price
d)
demand
106.

The amount of goods or services available for a producer to sell is called?

a)
supply
b)
demand
c)
producer
d)
consumer
107.

An individual who purchases (buy) goods.

a)
producer
b)
consumer
c)
goods
d)
services
108.
Lucas fixes his friend's sink.  He is providing a _____________.
a)
trade
b)
opportunity cost
c)
product
d)
service
109.
Mr Tonkli goes to the ticket booth to buy tickets for a Cavs game. Mr. Tonkli is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available? 
a)
The arena forgot to print enough tickets.
b)
The supply of tickets was greater than the demand.
c)
The arena charged too much money for each ticket.
d)
The demand for tickets was greater than the supply.
110.

What are statistics that help you understand the level of development of a country from low to high (poor to rich) (6.8B):

a)

Standards of Living

b)

Economic Indicators

c)

Cost of Living

d)

Keeping up with the Jones

111.

What is the definition for inflation?

a)

The market value of all final goods and services produced in a nation during a period of time, usually a year.

b)

The increase of general prices over time.

c)

When people do not have jobs and are actively looking for one.

112.

Derrick worked his entire life at a car manufacturing facility owned by Big Block Cars, Inc. He is now seventy-three years old and enjoying his retirement. His main source of income is the money he receives from 401(k) from his time at Big Block Cars.

How would an extended period of unexpected inflation affect Derrick?

a)

The taxes on his retirement would increase.

b)

The taxes on his retirement would decrease.

c)

It would reduce the value of his source of income

d)

It would increase the value of his source of income.

113.

For most individuals, which of the following is MOST LIKELY to increase earnings over the long-term?

a)

. finding a second job

b)

working longer hours

c)

becoming an entrepreneur

d)

investing in skill development

114.

An automobile insurance policy is LEAST LIKELY to cover expenses arising from which of the following?

a)

theft

b)

collisions

c)

natural disasters

d)

routine maintenance

115.

Raul has purchased fire insurance for his home, but he has decided not to purchase vision insurance. What is the MOST LIKELY reason for his decision?

a)

Raul reduced the risk of his home catching on fire by purchasing fire insurance, but was not worried about reducing the risk of vision problems.

b)

Fire insurance is very expensive and Raul did not have enough money to pay for vision insurance after purchasing fire insurance for his home.

c)

There is nothing Raul can do to reduce the risk of his home catching on fire, but Raul can practice good hygiene to reduce the risk of vision problems.

d)

The cost of repairing Raul's home after a fire is greater than the cost of fire insurance, but Raul's yearly eye checkups cost less than vision insurance.

116.

Logan earns compound interest on his savings. Based on this, which of the following statements is true?

a)

Logan's money grows faster and faster as the years go on.

b)

Logan needs to make very large deposits in order to expect much of a return.

c)

The longer Logan can postpone saving money, the better off he will be.

d)

The more years Logan has to save, the less effective it is.

117.

Which of the following borrowers is likely to receive the lowest interest rate for a bank loan of $50,000?

a)

an investor who plans to buy many shares of stock in a new corporation

b)

a business owner who needs to raise money to pay off another large loan

c)

a homeowner who wants to build an addition to her house that will increase its value

d)

an individual who desires to open a restaurant in a neighborhood with significant competition

118.

Which of the following must a person under the age of twenty-one provide proof of in order to be approved for a credit card?

a)

a source of income

b)

a savings account

c)

a high school diploma

d)

a utility or phone bill

119.

Matt's mom also has some money she wants to put in a bank. She will not need to use that money for about three years. Why might a certificate of deposit be good for Matt's mom?

a)

She will earn a higher amount of interest.

b)

She has to put a certain amount in the account.

c)

Her account may be charged a fee.

d)

Her money will be easy to take out.

120.

In order to protect against a risk of accidental property damage, a consumer would MOST LIKELY purchase which of the following?

a)

an annuity

b)

a mortgage

c)

an insurance policy

d)

a security agreement

121.

A bank customer seeks to borrow a large sum of money. On her application, she indicated that she has a full-time job with a high salary. This resulted in her receiving a loan interest rate that was below the average. Which of the following BEST explains this result?

a)

She demonstrated an ability to repay the loan.

b)

She indicated that her need for the loan is low

c)

She demonstrated that the loan would be put to good use.

d)

She indicated that she has other sources of financial assistance.

122.

Elena purchased several items of clothing for $120. She used a credit card to pay for her purchase. What is the BEST way to reduce the cost of using a credit card for this purchase?

a)

pay slightly more than the minimum payment each month

b)

pay the entire balance due before the grace period expires

c)

pay the minimum payment each month until the balance is paid in full

d)

. pay the minimum payment as soon as the credit card statement is received

123.

Which factor increases a consumer's credit worthiness?

a)

high loan balances

b)

long borrowing history

c)

low personal income

d)

significant financial need

124.

Which factor reduces the credit worthiness of a consumer?

a)

high loan balances

b)

significant savings

c)

significant collateral

d)

high annual income

125.

In the production of a wooden chair within the circular flow model, what would the resource market include?

a)

furtniture company

b)

office supply company

c)

trees

d)

wooden chairs

126.

If an economy is currently experiencing a peak or boom, which stage of the business cycle will they experience next?

a)

Expansion

b)

Peak

c)

Contraction

d)

. Trough

127.

When discussing factors of production, what is an example of physical capital?

a)

Pizza

b)

Oven

c)

Sun

d)

Pepperroni

128.

According to the graph below, what is the quantity at equilibrium?

a)

14

b)

400

c)

600

d)

1200

129.

Which of the following are included in the unemployment rate?

a)

adults who have retired

b)

part-time workers seeking full-time jobs

c)

laid-off workers seeking new employment

d)

workers who have given up seeking a new job

130.

The Law of Demand says that

a)

if price goes up, the quantity demanded goes up

b)

if price goes down, the quantity supplied goes up

c)

if price goes down, the quantity demanded goes down

d)

if price goes down, the quantity demanded goes up

131.

Pascal has owned and operated Pascal's Pizza in

Decatur, Georgia, for twenty years. Pascal

occasionally raises the prices of his pizzas to

cover business costs and to earn a profit to

support himself and his family. Why else would

Pascal raise the price of pizza?

a)

Pascal's Pizza was closed for health violations,

driving away customers.

b)

Pascal bought too many perishable ingredients

and has too much pizza.

c)

Pascal opened a second store location and

wants to attract new customers.

d)

Pascal's Pizza's rival, Penny's Pies, closed and

its customers still want pizza.

132.

Which is the BEST definition of marginal benefit?

a)

the additional gain from producing or consuming

one more unit of something

b)

the value of what is given up when a choice is

made between one alternative and another

c)

he trading of one good or service for another

without the use of money

d)

the rise in the average price of all the goods and

services in an economy

133.

When is the market price of a product most likely

to increase?

a)

when demand for the product increases

b)

when a competitor makes a better product

c)

when a cheap substitute for the product appears

in stores

d)

when the cost of raw materials declines

134.

As a program Social Security is designed to

achieve which of the United States economic

goals?

a)

economic freedom

b)

economic security

c)

economic equity

d)

price stability

135.

Government provides public goods like roads and

schools because these goods are

a)

not needed by business owners and individuals.

b)

necessary for national security.

c)

regulated by government.

d)

unprofitable for companies to provide.

136.
Which of the following may impact your car insurance rates?
a)
all of these choices are correct
b)
age
c)
number of accidents you have had
d)
marital status
137.
When the money you earn from working goes right into your checking account automatically this is called:
a)
direct deposit
b)
tax refund
c)
earned income
d)
pay stub
138.
When filling out the I-9 which of the following forms of identification can be used to prove your identity and eligibilty to work in the US? Check all that apply.
a)
US Passport
b)
Driver's License
c)
Birth Certificate
d)
School ID with picture
e)
Voter registration card
139.
401(k), IRA, and Roth IRA are all examples of a __________ account.
a)
Retirement
b)
College Savings
c)
Low Interest
d)
Stock
140.

What is a credit score?

a)

a three-digit score that tells lenders how much money you make each year.

b)

A five-digit numerical rating that reflects how likely you are to repay your debt.

c)

A three-digit numerical rating that reflects how likely you are to repay your debt.

d)

A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

141.
Edward wants to develop a positive credit history.  How should he do this?
a)
maintain reasonable amounts of available credit
b)
Open credit accounts in his parents' names
c)
Have one type of credit account
d)
Pay cash for the majority of purchases
142.
Which is NOT a way to establish credit?
a)
Creating an account with a bank
b)
Obtaining a credit card
c)
Getting married, having a few kids, buying some stuff, retiring to Florida, and dying.
d)
Having a parent co-sign a card
143.

With insurance, a higher deductible means a

a)

lower premium.

b)

higher premium.

c)

free healthcare.

d)

unlimited liability.

144.

A ___________ is like a loan to a corporation or the government and is a safer investment.

a)

401(k)

b)

bond

c)

stock

d)

share

145.

A person or organization that uses a product or service

a)

Business

b)

Consumer

c)

Loan Shark

d)

Asset

146.

 The percentage of principal charged by the lender for use of its money

a)

Interest

b)

Interest Rate

c)

Liability

d)

Net Worth

147.

The additional cost a lender charges for borrowing their money

a)

Interest

b)

Interest Rate

c)

Financial Plan

d)

Positive Net Worth

148.

The persistent rise in the cost of goods and services over time

a)

Goods & Services

b)

Inflation

c)

Copays

d)

Coverage

149.

An arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer

a)

Deductible

b)

Premium

c)

Claim

d)

Insurance

150.

The amount of money paid for an insurance policy

a)

Premium

b)

Deductible

c)

Claim

d)

Insurance

151.

The amount of money you will pay out of pocket before the insurance company will make a payment

a)

Policy

b)

Premium

c)

Deductible

d)

Co-pay

152.

(also copayments or coinsurance) the payments an individual makes each time they get medical service

a)

Insurance

b)

Copays

c)

Policy

d)

Loan

153.

Protection for losses to a private residence and the possessions within it, as well as liability

a)

Homeowner's Insurance

b)

Renter's Insurnce

c)

Policy

d)

Loan

154.

Protection for destroyed or stolen personal property for a renter

a)

Renter's Insurance

b)

Homeowner's Insuranace

c)

Policy

d)

Claim

155.

Coverage for an individual’s (or family‘s) medical expenses from illness or injury

a)

Health Insurance

b)

Renter's Insurance

c)

Homeowner's Insurance

d)

Claim

156.

People who are designated by the policyholder to receive the death benefit of a life insurance policy

a)

Insurance Claim

b)

Beneficiaries

c)

Policy Holders

d)

Claim

157.

The average cost of the basic goods and services needed to sustain a certain standard of living

a)

Cost of Living

b)

Standard of Living

c)

Audit

d)

Tax Bracket

158.

If you DO NOT pay your credit card bill on time, what will happen?

a)

nothing will happen

b)

card will be cancelled

c)

jail time

d)

late fee

159.

_____________________ is money that is borrowed.

a)

balance

b)

debit

c)

credit

d)

interest

160.
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
a)

Paying 20% of your credit card balance every month

b)

Making the minimum payment every month

c)

Paying off your balance every month

d)

Saying "credit" every time the cashier asks "Debit or Credit?"

161.
How can you improve your credit score?
a)

Pay all of your bills on time

b)

Spend more money on each of your credit cards

c)

Apply for 3 new credit cards in two months

d)

When merchants ask, "Credit or debit?" always choose credit

162.
Carmen has just graduated from college and receives a bunch of paperwork from her new employer's Human Resources department. Which of the following should be her first step in making sure she's paying the correct amount of taxes?
a)

Complete a 1040 form

b)

Buy a copy of TurboTax and file her taxes

c)

Complete an I-9 form

d)

Complete a W-4 form

163.
Which of the following is TRUE about having a good credit score?
a)

You're automatically eligible to have any remaining student loan balance forgiven by the Federal government.

b)

Universities will be more likely to accept you when making admissions decisions.

c)

Lenders are more likely to extend credit to you at lower interest rates.

d)

You get a $100-$500 check in the mail from the Federal government as a reward.

164.
Which statement best describes the difference between a debit and credit card?
a)

Debit cards have low interest rates while credit cards have high interest rates

b)

Debit cards spend money from your own checking account while credit cards take out a loan from the credit company

c)

Debit cards are better to use in stores while credit cards are better for shopping online

d)

Debit cards allow you to view all your transactions online while credit cards only show your available credit limit

165.
The most common relationship between risk and return in investing can be state as:
a)
no relationship exists between risk and return
b)
lower risk indicates higher return
c)
higher risk indicate higher return
d)
higher risk indicates lower teturn
166.
A diversified portfolio is desirable because it:
a)
limits investor choices to only one or two investment tools
b)
increases the risk/return ratio
c)
decreases risk by investing money in a variety of investment tools
d)
indicates an investor is a good predictor of the return an investment will have 
167.

What is the term for a loan to purchase a house?

a)

APR

b)

mortgage

c)

cosigner

d)

finance

168.

690-719 is considered a(n) _____ credit score.

a)

bad

b)

fair

c)

good

d)

excellent

169.

A specified amount of money that the insured must pay before an insurance company will pay a claim.

a)

premium

b)

deductible

c)

claim

d)

$1 million

170.

Expenses that are essential for you to be able to live and function

a)

wants

b)

cost of living

c)

needs

d)

variable expenses

171.

FICO Credit Score ranges from?

a)

450-1000

b)

350-850

c)

501-990

d)

300-800

172.

In most states, it is illegal to drive without ___________.

a)

health insurance

b)

property insurance

c)

liability insurance

d)

disability insurance

173.

Who contributes to 401K’s?

a)

employees and employers

b)

parents

c)

the government

d)

no one

174.

Risk can be defined as

a)

the potential for good fortune

b)

the potential for profit

c)

the potential for loss

d)

the potential for gain

175.

How many credit cards should I have?

a)

3-5

b)

0-2

c)

10

d)

as many as I can get

176.

____________ is a formal and legal declaration that you are not able to pay your debts.

a)

intent

b)

poverty

c)

solvency

d)

bankruptcy

177.

Credit is basically the same thing as a _______.

a)

lottery winning

b)

gift

c)

loan

d)

stock

178.

When a bank evaluates you to receive credit, you must be considered

a)

debt-free

b)

creditworthy

c)

poor

d)

rich

179.

The group who will typically pay the highest insurance premiums for auto insurance is

a)

woman who just turned 25

b)

teenage boys

c)

retired grandmother

d)

new college graduate who is also married with children

180.

What will make you more appealing to potential employers?

a)

sleeping on the job & frequently on your phone

b)

having bad work habits

c)

having many valuable skills and training

d)

frequent absences

181.

What you give up when making decisions, is called?

a)

Time value of money

b)

Opportunity cost

c)

Money cost

d)

Time management

182.
What is a paycheck "garnishment"?
a)
Court order to allow lender to steal from borrower
b)
Court order to allow lender to call the borrower constantly
c)
Court order to allow lender to take money directly from borrower's account
d)
Court order to allow lender to throw out a loan and let it go
183.
Reduction in a car's value due to age and wear -and- tear is known as :
a)
Appreciation
b)
Stagnation
c)
Depreciation
d)
Inflation