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ECON STUDY GUIDE

Total questions: 40

Worksheet time: 27mins

Name
Class
Date
1.
Which type of account has very high liquidity (easy to access), low or no interest, and low minimum balance? 
a)
Money Market Account
b)
Investment Retirement Account (IRA)
c)
Checking Account
d)
Certificate of Deposit
2.
an unexpected event or circumstance without deliberate intent.
a)
Accident Only
b)
Accident 
c)
Actuary 
d)
All-Risk
3.
Money charged for the insurance coverage reflecting expectation of loss.
a)
Premium
b)
Premiums Earned
c)
Premiums Net
d)
Premiums Written 
4.
The benefits of buying a home include 
a)
possibility of building equity 
b)
right to deduct interest on Federal Income Tax
c)
opportunity to personalize to own taste. 
d)
All the above
5.
What are some expenses related to utilities? 
a)
installation 
b)
deposits 
c)
monthly payments for service 
d)
all the above
6.
contract between a policyholder and an insurer
a)
 health plan
b)
 policy
c)
 insurance policy
7.
Which type of numbers will NOT appear on the bottom of a check?
a)
Account Number
b)
Social Security Number
c)
Check Number
d)
Routing Number
8.
Things that are not necessary for survival
a)
Needs
b)
Wants
9.
Things that are essential to life
a)
Wants
b)
Needs
10.
This for occupants who do not own the property but want to protect their personal belongings that are in the home or on the property. It is important for renters to note that the property owner's insurance policy does not cover them, and their items are lost in the event they are damaged or destroyed.
a)
 Renter's insurance
b)
Homeowner's Insurance
11.
an individual who follows his or her dreams by assuming the risk of starting a new business.
a)
Business Owner
b)
Boss
c)
Entrepreneur
d)
Storm Chaser
12.

What is the purpose of a Financial Plan?

4 lines
13.

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

14.

Which of the following correctly describes an entrepreneur?

a)

Christina folding laundry because it is one of her chores.

b)

Jacob starting his own doggy daycare and hiring his friends.

c)

Kimberley babysitting her brother while her parents go to the movies.

d)

Brandi getting a job so she can buy Christmas presents.

15.

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.

16.

If a city builds a new park, how will it be paid for?

a)

Donations the city collected

b)

The mayor used her own money

c)

The city used tax money paid by the citizens

d)

The city got a loan from the federal government

17.

What is the name of the place where people buy and sell goods?

a)

Amazon

b)

factory

c)

marketplace

d)

Industrial Park

18.

Why is it important that goods are made all over the world?

a)

It helps the government get rich through taxes.

b)

Businesses can charge more for their goods.

c)

Consumers pay the lowest prices possible.

d)

It gives consumers access to goods their communities do not make.

19.

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.

20.

When determining profit following a sale of a good, what must the business take into account?

a)

consumer demand

b)

competitor's prices

c)

available supply

d)

operating costs

21.

What is profit motive?

a)

the desire to have the most efficient business

b)

the desire to hire the most talented employees

c)

the desire to control all aspects of production

d)

the desire to make as much money as possible

22.

Which form of transportation is MOST accurate for Georgia?

a)

I-85 and I-75 only link Georgia to Florida.

b)

I-20 and I-16 only impact the eastern part of the state.

c)

The interstate systems helps to support Georgia's ports.

d)

Georgia's ports are isolated from the rest of the state.

23.

What two transportation systems are MOST important for Georgia's tourism industry?

a)

interstate highway system and the international airport

b)

railroads and the deepwater ports

c)

interstate highway system and the deepwater ports

d)

railroads and international airport

24.

Use the list to answer the following question.

Conductor, Mechanic, Track maintenance worker, and Engineer

All of the jobs in the preceding list exist because of:

a)

Georgia's railroad transportation system

b)

the interstate highway system

c)

Hartsfield-Jackson Internation Airport

d)

the Ports of Brunswick and Savannah

25.

__________is one of the most important sectors of Georgia's economy and creates many jobs for the state's residents.

a)

railroads

b)

deepwater ports

c)

interstate highway system

d)

Hartsfield-Jackson Internation Airport

26.

________accounts for the largest portion of Georgia's economy?

a)

agriculture

b)

entertainment

c)

fishing

d)

manufacturing

27.

________is necessary in order to afford monthly bills and save for the future?

a)

investing in stocks

b)

getting a job

c)

applying for a loan

d)

obtaining a credit card

28.

Income is_____________

a)

Timothy earns an hourly wage working at a fast food restaurant.

b)

Ali buys a new pair of brand name sneakers.

c)

Maria puts money into a savings account at her local bank.

d)

Sam takes out a loan to pay for his tuition for college.

29.

Read the text and answer the question.

Landon worked in restaurants in the small town he lived in since he was young. The people in his town loved the high school football team. Landon always thought people would buy accessories with the team logo is they were available. He got permission from the school to use the logo for a fee and quit his job. He used his savings to buy blank shirts, a graphic design program for his computer, and a book to help him learn how to design the shirts. Finally, Landon started a website so that fans could order team accessories from him.

Why was this business venture particularly risky for Landon?

a)

he lacked the capital he needed

b)

he did not have relevant experience

c)

the industry was heavily regulated

d)

there was a lot of coompetition.

30.

Read the text and answer the question that follows.

Bailey has been an auto mechanic for fifteen years. In her spare time, she designs engines. Her engines are unlike anything currently on the market; they are faster, cheaper to produce, and better for the environment. She wants to start her own business producing her engines but knows she must be able to mass produce them in order to be successful. This would require investments in equipment and labor that she does not have the money to pay for herself.

What risk is Bailey facing as she becomes an entrepreneur?

a)

lack of capital

b)

lack of experience

c)

high level of regulation

d)

high level of competition

31.

Read the text and answer the question.

Diego recently graduated from college. During this time in school, he lived at his parents' home in the same town as his college. Now that he has graduated, he wants to rent an apartment of his own. The apartment he wants to requires payment of the first and last months' rent, plus a security deposit. Unfortunately, he does not have enough money to make these payments, nor ay reliable source of money for the monthly rent once he moves in.

What is the most financially responsible way for Diego to raise the money for the apartment?

a)

get a job in order to begin earning an income

b)

obtain a loan from a financial lending institution

c)

open an account with a major credit card company

d)

establish a savings account to begin earning interest

32.

Which of these people is the MOST financially responsible?

a)

Quentin, who used a mortgage to buy a house that he could not afford.

b)

Rachelle, who buys lotto tickets with all of her extra money

c)

Safia, who has a full-time job and always follows a persoaly budget

d)

Terell, who maxed out his credit card buying a new television

33.

Amir reads annual statements from his bank and credit card accounts and realizes that he is in the habit of spending more than he earns. How would developing a budget be helpful to Amir?

a)

It would provide him with more money to spend.

b)

It would lower the interest rate on his credit card.

c)

It would prevent him from falling further into debt.

d)

It would help him obtain a large loan from his bank.

34.

Fabian often runs out of money before his monthly credit card bills are due. He does eventually pay the bills, but he also has to pay fees for late payments. What is the MOST financially responsible action Fabian could take?

a)

obtaining a loan from his bank

b)

applying for additional credit cards

c)

developing a personal monthly budget

d)

asking his employer for a salary

35.

Which of the following persons will earn the MOST interest on the money in their savings account?

a)

Bruno, who has $100 earns an annual interest rate of 10 percent

b)

Diego, who has $1500 earns an annual interest rate of 1 percent

c)

Sophia, who has $1000 earns annual interest rate of 2 percent

d)

Gabriella, who has $800 earns an annual interest rate of 3 percent.

36.

Read the information in the box.

Matt and Jenna are married. They each have jobs that allow them to pay their bills and save money each month. They would like to have children in the next few years.

Based on the circumstances described in the box, which type of debt would probably be the MOST reasonable for Matt and Jenna to incur?

a)

using a credit card to pay for an extended vacation

b)

getting a credit card to buy the latest personal electronics

c)

using a credit card to buy the latest personal electronics

d)

getting a loan from a mortgage company to purchase a home

37.

Which phrase described a significant risk associated with mishandling credit?

a)

paying more sales taxes

b)

paying higher interest rates

c)

receiving higher credit scores

d)

receiving more credit card offers

38.

What is profit motive?

a)

the desire to have the most efficient business

b)

the desire to hire the most talented employees

c)

the desire to control all aspects of production

d)

the desire to make as much money as possible

39.

When determining profit following a sale of a good, what must the business take into account?

a)

consumer demand

b)

competitor's prices

c)

available supply

d)

operating costs

40.

Based on your knowledge of Georgia's economy, what kind of event would be MOST damaging to Georgia's economy?

a)

a televisionwriters' strick

b)

a pest infestation affecting crops

c)

a decline in international tourism

d)

an oil spill near the Atlantic coast