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Economics Quiz

Total questions: 55

Worksheet time: 33mins

Name
Class
Date
1.

What is saving?

a)

The act of setting aside a portion of one's income or resources for future use.

b)

The act of allocating money or resources with the expectation of generating a profit or return in the future.

c)

The act of spending money now to fulfill needs.

d)

The act of purchasing property with the hope that it will appreciate in value at a later date.

2.

Which of the following is NOT a benefit of a good credit score?

a)

It makes it easier to obtain credit.

b)

It can lower interest rates on credit.

c)

It can accelerate the time that credit has to be paid back.

d)

It can unlock certain benefits like special credit cards.

3.

What is gross income?

a)

The total amount of income earned by an individual or business before any deductions or taxes are taken out.

b)

The amount of income that an individual or business has left over after all deductions and expenses have been taken out.

c)

The amount of income that is subject to taxation by the government. This is calculated by subtracting any allowable deductions, exemptions, and credits.

d)

None of the above.

4.

What is an economic system?

a)

A way to troubleshoot failing economies.

b)

A market in which individuals can buy or sell equities from publicly traded companies.

c)

The computer system that tracks and monitors how an economy is functioning.

d)

The way in which a society organizes the production, distribution, and consumption of goods and services.

5.

Tracking income and (a)   and reconciling financial records are crucial aspects of maintaining good financial health.

6.

What is a production-possibilities curve?

a)

The amount of a good or service that producers are willing and able to offer for sale at a given price.

b)

The amount of a good or service that consumers are willing and able to purchase at a given price.

c)

The point when the quantity supplied and the quantity demanded are equal at a certain price.

d)

A graphical representation of the different combinations of two goods that a country, a firm, or an individual can produce given a fixed set of resources and technology.

7.

What is the profit earned from the sale of an asset called?

a)

Capital Gain

b)

Capital Grill

c)

Dividend

d)

Royalty

8.

Analyze how the concepts of scarcity, choice, and opportunity costs apply to decision making.

a)

The abundance of resources.

b)

The role of government in resource allocation.

c)

The value of the next best alternative that we forgo when we make a choice.

d)

The influence of technology on decision making.

9.

Develop financial goals for the short, medium, and long term that are specific, measurable, attainable, realistic, and time based.

a)

Ambitious

b)

Loans

c)

FAFSA

10.

Describe the process for completing grant and scholarship applications, including the Free Application for Federal Student Aid (FAFSA®) provided by the U.S. Department of Education or the Texas Application for State Financial Aid (TASFA).

a)

Ambitious

b)

Loans

c)

FAFSA

11.

The ability of an individual or organization to borrow money or access goods or services with the understanding that payment will be made at a later date.

a)

True

b)

False

12.

The factors that affect the demand and supply of a product or service, other than its price.

a)

True

b)

False

13.

Differentiate among and calculate gross, net, and taxable income. The total amount of income earned by an individual or business before any deductions or taxes are taken out.

4 lines
14.

Explain how all economic systems are mixed and exist on a spectrum between pure market and pure command systems. The way in which a society organizes the production, distribution, and consumption of goods and services.

4 lines
15.

Differentiate among and calculate gross, net, and taxable income. Expenses.

(a)  

16.

What is the primary difference between a credit card and a debit card?

a)

Both credit and debit cards deduct money directly from your bank account.

b)

Both credit and debit cards allow you to borrow money up to a certain limit.

c)

A debit card allows you to borrow money up to a certain limit, while a credit card deducts money directly from your bank account.

d)

A credit card allows you to borrow money up to a certain limit, while a debit card deducts money directly from your bank account.

17.

Which of the following is a benefit of using a credit card responsibly?

a)

It guarantees unlimited spending without consequences.

b)

It eliminates the need to budget expenses.

c)

It can help build a positive credit history.

d)

It automatically increases your income.

18.

What is an overdraft fee?

a)

A fee charged for depositing money into a savings account.

b)

A fee charged for using a credit card for purchases.

c)

A fee charged for transferring money between accounts.

d)

A fee charged when you withdraw more money from your bank account than you have available.

19.

What does a point inside the production possibilities curve represent?

a)

Efficient use of resources

b)

Underutilization of resources

c)

Optimal production

d)

Overutilization of resources

20.

How can an economy achieve a point outside its current production possibilities curve?

a)

By maintaining the current level of technology and resources

b)

By decreasing the production of one good

c)

By improving technology or increasing resources

d)

By reducing the available resources

21.

What does a shift to the right of the production possibilities curve indicate?

a)

A decrease in the production of one good

b)

A decrease in the economy's production capacity

c)

An increase in the economy's production capacity

d)

No change in the economy's production capacity

22.

Which of the following would be a variable expense?

a)

Rent

b)

Car payment

c)

Gym membership

d)

Gas for your car

23.

What is income?

a)

The next best option when making a choice

b)

When unlimited wants exceed limited resources

c)

The taxes that are paid to the federal government

d)

Money earned in exchange for a good or service

24.

What are dividends?

a)

Income that is paid per hour of work

b)

Income that is gained when you sell something for more than you paid for it

c)

Income earned when companies share profits with stockholders

d)

Income earned by completing a job

25.

What is a fixed expense?

a)

An expense that changes frequently

b)

An expense that remains the same over an extended period

c)

An expense that covers an expected event

d)

An expense that coves an unexpected event

26.

What is disposable income?

a)

The total income one acquires

b)

The amount of income one can spend BEFORE taxes are collected

c)

The amount of income one can spend AFTER taxes are collected

d)

The amount of income one earns on a given day

27.

What is the difference between a need and a want?

a)

A want is something you must have to survive. A need is a luxury that would make life more comfortable

b)

A need is something you must have to survive. A want is a luxury that would make life more comfortable

c)

A want is something that everyone must have. A need is something only a few people have

d)

A need is something that only happens once. A want is something that happens more than once.

28.

What is the purpose of a savings account?

a)

To store money for daily expenses

b)

To store money for long-term goals or emergencies

c)

To store money for immediate spending

d)

To store money for buying stocks

29.

What is the difference between gross income and net income?

a)

Gross income is income after taxes, while net income is income before taxes

b)

Gross income is income before taxes, while net income is income after taxes

c)

Gross income is total income, while net income is income after expenses

d)

Gross income is income after expenses, while net income is total income

30.

What is the main disadvantage of payday loans?

a)

They require a good credit score

b)

They have a high interest rate

c)

They require collateral

d)

They require a long-term commitment

31.

What is the main advantage of using a credit card?

a)

It allows you to spend more than you have

b)

It allows you to delay payment for purchases

c)

It increases your credit score automatically

d)

It provides insurance on all purchases

32.

What is the main disadvantage of having a bad credit score?

a)

It makes it harder to get approved for loans and credit cards

b)

It increases the interest rate on your savings account

c)

It prevents you from getting a job

d)

It automatically disqualifies you from financial aid for education

33.

Which type of insurance are co-pays generally associated with?

a)

Health

b)

Auto

c)

Life

d)

Renters

34.

What is a premium?

a)

Part of an insurance policy that guarantees a replacement to an asset if it is lost or damaged.

b)

The practice of an insurance company taking some responsibility for an accident away from a person

c)

The cost of the insurance policy

d)

The amount of money that a person is responsible for paying before the insurance company will start paying benefits

35.

Which of the following is NOT a benefit of insurance?

a)

Shared liability

b)

Asset protection

c)

Co-pays

d)

Increased personal risk

36.

the following alter a car insurance premium fee, EXCEPT

a)

type of vehicle

b)

age of driver

c)

driver's educational level

d)

year model of vehicle

37.

The Free Enterprise System, or capitalism, focuses on

a)

collective ownership of resources

b)

equal distribution of wealth

c)

government ownership of resources

d)

property rights and incentives

38.

What does "A" represent?

a)

Households

b)

Firms

c)

Product Market

d)

Factor Market

39.

When Toyota introduced its 2010 Prius, it announced that the average retail price of the

2010 model would be lower than the average retail price was for the equivalent 2009

model. Which of the following would explain the price differential?

a)

The demand for the Prius had increased, and the supply of the Prius remained

unchanged.

b)

The supply of the Prius had decreased, and the demand for the Prius remained

unchanged.

c)

The demand for the Prius had decreased, and the supply of the Prius had

increased.

d)

The demand for the Prius had increased, and the supply of the Prius had decreased

40.

Amazon is a good example of a product market because...

a)

Amazon acquires factors of production based on demand

b)

Amazon offers goods and services to consumers based on demand

c)

Amazon leases out land based on market demand

d)

Amazon acts a government entity regulating factor markets

41.

In which type of economy does the government maintain control of everything?

a)

Traditional

b)

Market

c)

Mixed

d)

Command

42.

What economic system is based on supply and demand?

a)

Traditional

b)

Market

c)

Mixed

d)

Command

43.

Based on this graphic, which country has an economic system closest to that of a pure command economy?

a)

Japan

b)

China

c)

North Korea

d)

Venezuela

44.

In the 18th century, Britain decided to ship convicts to Australia. The transportation was

privately provided but publicly funded. A lot of convicts died along the way due to disease

and overall poor conditions on the boat. On one ship in particular, 37% of convicts

aboard the vessel died. How might Britain have decreased the number of convict deaths

on the passage to Australia?

a)

Passed convict health laws

b)

Educated Captains on general health and safety

c)

Provided incentive pay to captains for every convict who lived

d)

Upgraded the ships making the passage to Australia

45.

All of the following are common measures of a country’s economic growth except

a)

Gross Domestic Happiness

b)

Gross Domestic Product

c)

Inflation

d)

Unemployment

46.

A good measurement of price stability is?

a)

Quantity demanded

b)

Quantity supplied

c)

Inflation

d)

Unemployment

47.

All of the following are common factors of Fiscal Policy EXCEPT

a)

Tax rates

b)

Rates of government spending

c)

Changes to interest rates

d)

Changes to total equilibrium

48.

The Federal Reserve

a)

Regulates the amount of money in circulation

b)

Provides financial services to banks and the public

c)

Supervises banks

d)

All of the Above

49.

Investing in the Stock Market isn't risky.

a)

True

b)

False

50.

When the value of your asset tends to go down over time

a)

depreciaition

b)

appreciation

c)

net worth

d)

Asset

51.

Which of the following is a benefit of attending a community college before transferring to a four-year university?

a)

Smaller class sizes

b)

Limited course offerings

c)

Fewer extracurricular activities

d)

Higher tuition costs

52.

What is a primary advantage of pursuing a vocational or technical education after high school?

a)

Longer time to complete the program

b)

Limited job opportunities

c)

Direct entry into the workforce with specialized skills

d)

Higher student loan debt

53.

Which of the following is NOT typically considered a post-secondary educational option?

a)

High school diploma

b)

Apprenticeship programs

c)

Military training

d)

Online degree programs

54.

What is the main purpose of monetary policy?

a)

To regulate international trade agreements

b)

To reduce unemployment by creating jobs

c)

To increase government spending

d)

To control inflation and stabilize the currency

55.

Which of the following best describes a mixed economy?

a)

An economy that is based on traditional practices and customs

b)

An economy that combines elements of both market and command economies

c)

An economy that relies solely on market forces

d)

An economy where all resources are owned by the government