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Economic Concepts Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Sources of income includes: Wages, Rentals, Interest, Capital, profits, Entrepreneurship

a)

Wages, Rentals, Interest, Capital, profits, Entrepreneurship

b)

Wages, Salaries, Dividends, Royalties, Entrepreneurship

c)

Rentals, Interest, Dividends, Capital, Entrepreneurship

d)

Wages, Interest, Royalties, Capital, Profits

2.

Exemptions are also called _________________. How does exemptions work? Used to reduce amount of taxed income

a)

Deductions

b)

Credits

c)

Allowances

d)

Exclusions

3.

The degree of ease in which assets can be sold _______________________

a)

Liquidity

b)

Volatility

c)

Profitability

d)

Stability

4.

Discretionary Income is also known as _____________________. Discretionary income is not allocated for _____________ ________________

a)

Disposable Income

b)

Mandatory Expenses

c)

Fixed Costs

d)

Essential Spending

5.

The US Currency has value even though it is not tied to a commodity because:

a)

It is backed by gold reserves.

b)

It is accepted as a medium of exchange and has trust.

c)

It is tied to the value of oil.

d)

It is printed in limited quantities.

6.

Who is hurt the most with inflation?

a)

Consumers with fixed incomes

b)

Wealthy investors

c)

Exporters

d)

Government employees

7.

Who is hurt the least with inflation?

a)

Borrowers with fixed-rate loans

b)

Savers with fixed interest accounts

c)

People on fixed incomes

d)

Workers with wages that do not increase

8.

Determine/Formula to calculate Net-Worth

a)

Assets - Liabilities

b)

Income + Expenses

c)

Assets + Liabilities

d)

Income - Expenses

9.

Liabilities are defined as:

a)

Assets owned by a company

b)

Financial obligations or debts

c)

Revenue generated by a company

d)

Equity held by shareholders

10.

Your Pay rate is $12 an hour, What would your overtime rate be? _________

a)

$18 an hour

b)

$15 an hour

c)

$20 an hour

d)

$24 an hour

11.

Distinguish between the following: Long term goals

a)

Goals that are achieved in a short period

b)

Goals that are achieved over an extended period

c)

Goals that require no planning

d)

Goals that are impossible to achieve

12.

Fixed expenses are costs that do not change with the level of goods or services produced. Which of the following is an example of a fixed expense?

a)

Rent

b)

Utility bills

c)

Raw materials

d)

Sales commissions

13.

What is Unanticipated Expense?

a)

An expected cost

b)

A planned expenditure

c)

An unexpected cost

d)

A regular payment

14.

Personal Net-Worth Statement summarizes your financial health. It lists your assets (What you own) and your liabilities (what you owe). What does it summarize?

a)

Your financial health

b)

Your daily expenses

c)

Your income sources

d)

Your investment portfolio

15.

_______________ is payment for work that is one and half times your regular hourly wage.

a)

Overtime

b)

Regular pay

c)

Double time

d)

Holiday pay