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WorksheetsFinal Exam Concepts & Vocabulary
Total questions: 90
Worksheet time: 2hrs 30mins
What is the definition of 'Wants and Needs'?
Wants are things people desire to have, while needs are things people must have to survive.
Wants are things people must have to survive, while needs are things people desire to have.
Wants and needs are both things people can live without.
Wants are things people need for survival, while needs are things people want for fun.
What are 'Resources' in economics?
Resources are inputs used to produce goods and services, such as land, labor, and capital.
Resources are only the money available to a business.
Resources refer exclusively to finished products ready for sale.
Resources are the profits earned by companies.
What is a 'Product' in economics?
A product is a good or service that is offered to satisfy a want or need.
A product is only a physical item that cannot be consumed.
A product is a type of currency used in trade.
A product is a government regulation.
What is a 'Service' in economics?
Who is a 'Consumer'?
A consumer is a person who purchases goods and services for personal use.
A consumer is a person who sells goods and services to others.
A consumer is a person who manufactures goods for commercial purposes.
A consumer is a person who provides services to businesses.
A 'Command Economy' is a type of economic system where:
the government makes all decisions regarding the production and distribution of goods and services.
individuals and businesses make decisions based on supply and demand.
there is a mix of government and private sector involvement in economic decisions.
the economy is driven by technological advancements and innovation.
What is a 'Market Economy'?
What is a 'Mixed Economy'?
A mixed economy is an economic system combining private and public enterprise.
A mixed economy is an economic system based only on government ownership.
A mixed economy is an economic system where only private businesses operate.
A mixed economy is an economic system that does not allow any form of trade.
What is a 'Business Plan'?
A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals can be achieved.
A business plan is a casual conversation between business partners about future ideas.
A business plan is a government-issued license to start a business.
A business plan is a list of products a company wants to sell next year.
The difference between unlimited wants and limited resources is known as:
Abundance
Scarcity
Surplus
Equilibrium
Things that affect the cost of using credit include:
Interest rates, fees, and repayment terms
The color of your credit card
The number of friends you have
The weather on the day you apply
Define the following car insurance basics: a. Bodily Injury Liability Insurance b. Comprehensive c. Collision d. Deductible e. Policy Holder f. Claim g. Premium
a. Bodily Injury Liability Insurance: Covers injuries to others in an accident you cause. b. Comprehensive: Covers damage to your car not caused by a collision (e.g., theft, fire). c. Collision: Covers damage to your car from a collision. d. Deductible: The amount you pay out of pocket before insurance covers the rest. e. Policy Holder: The person who owns the insurance policy. f. Claim: A request for payment from the insurance company. g. Premium: The amount you pay for insurance coverage.
a. Bodily Injury Liability Insurance: Covers damage to your car from a collision. b. Comprehensive: Covers injuries to others in an accident you cause. c. Collision: Covers damage to your car not caused by a collision. d. Deductible: The amount the insurance company pays before you pay anything. e. Policy Holder: The insurance company. f. Claim: A payment made to the policy holder. g. Premium: The amount the insurance company pays you.
a. Bodily Injury Liability Insurance: Covers only your injuries in an accident. b. Comprehensive: Covers only theft of your car. c. Collision: Covers only fire damage. d. Deductible: The amount the insurance company pays you. e. Policy Holder: The person who files a claim. f. Claim: The insurance policy itself. g. Premium: The amount you receive after a claim.
a. Bodily Injury Liability Insurance: Covers property damage only. b. Comprehensive: Covers only weather-related damage. c. Collision: Covers only minor scratches. d. Deductible: The amount you pay for your premium. e. Policy Holder: The person who repairs the car. f. Claim: The process of buying insurance. g. Premium: The amount you pay after a claim.
Credit is:
A form of payment where goods or services are received now and paid for later
A type of currency
A method of saving money
A way to increase prices
Credit ratings impact how much banks are willing to lend you by:
Increasing the amount banks are willing to lend if the rating is high
Decreasing the amount banks are willing to lend if the rating is high
Having no effect on the amount banks are willing to lend
Guaranteeing loan approval regardless of rating
What could lower your credit score?
Paying bills late
Paying bills on time
Having a low credit utilization
Maintaining a long credit history
Compare and contrast types of savings accounts.
Types of savings accounts have identical features.
All savings accounts offer the same interest rates.
Savings accounts can differ in interest rates, minimum balances, and accessibility.
There are no differences between types of savings accounts.
A down payment impacts how much you owe and how long it will take to pay off a loan by:
Reducing the total amount you need to borrow and possibly shortening the loan term.
Increasing the total amount you need to borrow and lengthening the loan term.
Having no effect on the amount owed or the loan term.
Only affecting the interest rate, not the amount owed or loan term.
A budget is:
A plan for managing income and expenses
A type of bank account
A method of earning money
A form of investment
A secured loan is:
A loan that requires collateral
A loan with no interest
A loan given to only businesses
A loan that does not require repayment
Collateral is:
A type of loan
A security pledged for repayment of a loan
An interest rate
A financial institution
The Fair Credit Billing Act limits consumer liability for fraudulent charges to:
$0
$50
$500
The full amount of the charge
What is identity theft and what problems does it cause?
Identity theft is when someone uses another person's personal information without permission, causing financial and legal problems.
Identity theft is a type of computer virus that damages files.
Identity theft is a way to protect your identity online.
Identity theft is a government program to help people with lost IDs.
If your identity is stolen, you should:
Ignore it and hope it resolves itself
Report it to the authorities and take steps to protect your information
Tell your friends but take no action
Post about it on social media
Which of the following lists the main types of economic systems and compares command, market, and mixed systems in terms of similarities and differences?
Traditional, command, market, and mixed; command and market differ in government control, while mixed combines both.
Only market and command; both have no government involvement.
Only mixed; it is the same as command.
Traditional and market; both are fully government controlled.
Most nations today have what type of economy?
Traditional economy
Command economy
Market economy
Mixed economy
A business plan is:
A document outlining a company's goals and strategies
A type of business license
A marketing campaign
A financial statement
Advertising is:
A form of personal communication
A method of direct selling
A paid form of non-personal communication to promote products or services
A government regulation
Marketing is:
The process of promoting and selling products or services
A type of financial accounting
A method of manufacturing goods
A legal procedure for patents
What is the marketing mix? What are the different parts?
The marketing mix refers to a set of marketing tools that a company uses to achieve its marketing objectives; its main parts are Product, Price, Place, and Promotion.
The marketing mix is a financial strategy; its main parts are Investment, Savings, and Loans.
The marketing mix is a type of advertising; its main parts are TV, Radio, and Print.
The marketing mix is a customer service plan; its main parts are Support, Feedback, and Delivery.
What is an interest rate?
A percentage charged on borrowed money or earned through investment
A type of bank account
A form of currency
A government tax
A target market is:
A group of people a business aims its products or services at.
A competitor in the same industry.
A government agency regulating businesses.
A random selection of customers.
Tax forms 1040, W-2, W-4, and 1099 are used for:
Filing and reporting income and tax information to the IRS
Applying for a driver's license
Registering to vote
Enrolling in health insurance
What is a warranty? Give an example for a car or product.
A warranty is a guarantee provided by a manufacturer or seller that a product will work as described. For example, a car may come with a 3-year warranty covering repairs.
A warranty is a type of insurance policy for your home.
A warranty is a document needed to register a vehicle.
A warranty is a type of loan for purchasing products.
Product liability refers to:
The responsibility of manufacturers for defects in their products
The right of consumers to return any product
The process of advertising a product
The cost of producing a product
The four basic consumer rights are:
Right to Safety, Right to Information, Right to Choose, Right to be Heard
Right to Privacy, Right to Education, Right to Work, Right to Vote
Right to Property, Right to Travel, Right to Assemble, Right to Petition
Right to Health, Right to Shelter, Right to Food, Right to Expression
Insurance is defined as:
A contract in which an individual receives financial protection against losses from an insurance company.
A type of investment for earning profits.
A method of saving money in a bank account.
A government tax collection process.
What is the function of business that involves maintaining and auditing records, sending out and paying bills, and preparing financial reports for a business?
accounting
marketing
production
human resources
The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services
marketing
accounting
engineering
manufacturing
Paid, non-personal form of communication that businesses use to promote their products and services. A commercial would be an example.
advertising
negotiation
bartering
networking
Companies need to take the ________ of different countries into consideration when creating and promoting different products.
cultures
currencies
languages
governments
A person who recognizes a business opportunity and organizes, manages, and assumes the risks of starting and operating a business
entrepreneurship
employee
customer
manager
A business owned by only one person
sole proprietorship
partnership
corporation
cooperative
A company will change its marketing plan to better fit with a certain group of people. What is this group of people known as?
target market
focus group
stakeholders
shareholders
Besides promotion, what else can a company change when selling goods or services in a foreign country to try to get more people there to buy from them?
product
location
currency
employee benefits
A person who uses goods and services
consumer
producer
manufacturer
supplier
Legal process in which a borrower is relieved of debts after showing an inability to pay
bankruptcy
foreclosure
amortization
liquidation
What does 'Unlimited wants' mean in economics?
People have endless desires for goods and services.
People have limited needs for goods and services.
People do not want any goods or services.
People only want luxury goods and services.
What does 'Limited resources' mean in economics?
What is 'Scarcity' in economics?
Which of the following affects the cost of using credit?
Interest rate
Fees
Credit score
Loan term
Type of credit
What is the definition of 'Interest rate' in the context of credit?
The percentage charged on borrowed money.
The total amount borrowed from a lender.
The time period for repaying a loan.
The minimum payment required each month.
What are 'Fees' in the context of credit?
Additional charges like annual fees, late fees, and over-limit fees.
The total amount borrowed from a lender.
The interest rate applied to your credit balance.
A type of reward points earned on purchases.
What is a 'Credit score'?
What does 'Loan term' refer to?
The length of time to repay the loan.
The interest rate charged on the loan.
The total amount borrowed.
The monthly payment amount.
What is 'Bodily Injury Liability Insurance'?
Covers injuries to others in an accident caused by the policyholder.
Covers damage to the policyholder's own vehicle in any accident.
Pays for routine maintenance of the policyholder's car.
Covers theft of the policyholder's personal belongings from the car.
What does 'Comprehensive' car insurance cover?
What does 'Collision' car insurance cover?
Covers damage to the policyholder’s vehicle in an accident.
Covers theft of the policyholder’s vehicle.
Covers medical expenses for injuries to the driver.
Covers damage caused by natural disasters.
What is a 'Deductible' in car insurance?
Who is the 'Policyholder' in car insurance?
What is a 'Claim' in car insurance?
A formal request for payment from an insurance company.
A type of car insurance policy.
A discount on your premium.
A document proving car ownership.
What is a 'Premium' in car insurance?
The regular payment made to maintain insurance coverage.
A type of car insurance that covers only theft.
A bonus given to safe drivers.
The amount paid by the insurer after an accident.
What is credit? What does it mean to buy on credit?
Credit: A financial arrangement that allows individuals to borrow money or goods and services with the promise to repay later. Buying on credit: Acquiring goods or services now and paying for them over time.
Credit: A type of currency used only in online transactions. Buying on credit: Paying for goods with digital coins.
Credit: A method of saving money in a bank account. Buying on credit: Depositing cash for future purchases.
Credit: A government-issued document for tax purposes. Buying on credit: Using vouchers to buy goods.
How do credit ratings impact how much banks are willing to lend you?
A higher credit score indicates a lower risk to lenders, making them more likely to offer loans with favorable terms (lower interest rates, higher credit limits).
A higher credit score means banks will not lend you any money at all.
A higher credit score results in banks charging you higher interest rates and offering lower credit limits.
A higher credit score has no effect on a bank's decision to lend or the terms offered.
What could lower your credit score?
Late payments, high credit utilization, opening too many new accounts.
Paying all bills on time, keeping credit utilization low, and not opening new accounts.
Having a long credit history with no missed payments.
Regularly checking your credit report for errors.
Compare and contrast types of savings accounts: Traditional savings accounts, High-yield savings accounts, Money market accounts, Certificate of Deposit (CD). Describe the main features of each type.
Traditional savings accounts: Low interest rates, easy access. High-yield savings accounts: Higher interest rates, limited withdrawals. Money market accounts: Higher interest rates, check-writing privileges, and minimum balance requirements. Certificate of Deposit (CD): Fixed interest rate, fixed term, penalty for early withdrawal.
Traditional savings accounts: High interest rates, fixed term. High-yield savings accounts: Low interest rates, unlimited withdrawals. Money market accounts: No minimum balance, no check-writing privileges. Certificate of Deposit (CD): Variable interest rate, no penalty for early withdrawal.
Traditional savings accounts: Only available online, no access to funds. High-yield savings accounts: No interest, unlimited withdrawals. Money market accounts: No interest, no check-writing privileges. Certificate of Deposit (CD): No fixed term, no penalties.
Traditional savings accounts: Requires large minimum deposit, no access to funds. High-yield savings accounts: No interest, no withdrawal limits. Money market accounts: No minimum balance, no check-writing privileges. Certificate of Deposit (CD): No fixed term, no penalties.
How does a down payment impact how much you owe and how long it will take to pay off a loan?
A larger down payment reduces the loan amount, lowering the total interest paid and shortening the loan term.
A larger down payment increases the loan amount, raising the total interest paid and lengthening the loan term.
A larger down payment has no effect on the loan amount or the time it takes to pay off the loan.
A larger down payment only affects your monthly payment, not the total interest or loan term.
What is a budget?
A financial plan that tracks income and expenses to manage money effectively.
A type of bank account used for saving money.
A document that lists only your monthly expenses.
A loan taken from a financial institution.
What is a secured loan?
What is collateral?
Collateral is an asset pledged to secure a loan.
Collateral is a type of insurance policy.
Collateral is a form of government tax.
Collateral is a legal document for property transfer.
What is the liability limit for unauthorized charges on credit cards under the Fair Credit Billing Act?
$50 if reported promptly.
$100 regardless of when reported.
$0 if reported within 60 days.
$500 if reported after 30 days.
What is identity theft and what problems can it cause?
Identity theft occurs when someone steals personal information to commit fraud. It can lead to financial loss, damaged credit, and emotional stress.
Identity theft is when someone borrows your phone without permission. It can lead to minor inconveniences.
Identity theft happens when you forget your own password. It can cause temporary access issues.
Identity theft is when you change your name legally. It can result in new identification documents.
What should you do if your identity is stolen? List the steps you should take if you suspect identity theft.
Contact credit bureaus to place a fraud alert or freeze your credit. File a police report. Contact creditors and banks to report fraudulent activity. Monitor your credit reports and bank statements closely.
Ignore the situation and wait to see if it resolves itself.
Only change your email password and do nothing else.
Post about the theft on social media and ask friends for advice.
Describe the main features of command, market, and mixed economies.
Command economy: Centralized planning, government control over resources and production. Market economy: Decentralized decision-making, private ownership, and competition. Mixed economy: Combines elements of both command and market economies, with government intervention and private enterprise.
Command economy: Decentralized decision-making, private ownership. Market economy: Centralized planning, government control. Mixed economy: No government intervention at all.
Command economy: Only private businesses operate. Market economy: Only government agencies operate. Mixed economy: No competition allowed.
Command economy: No planning or control. Market economy: No private ownership. Mixed economy: Only government-run enterprises.
What type of economy do most nations have today?
Command economy
Traditional economy
Mixed economy
Market economy
What is a business plan?
A detailed plan outlining the goals, strategies, and financial projections of a business.
A casual conversation between business partners.
A random idea about starting a business.
A legal document required to start a business.
What is advertising?
A method of communication with the users of a product or service
A type of financial investment
A form of government regulation
A scientific theory
Marketing is:
the process of promoting and selling products or services
a type of financial analysis
a legal procedure
a form of artistic expression
Which of the following best describes the marketing mix and its different parts?
A combination of factors that can be controlled by a company to influence consumers to purchase its products, including product, price, place, and promotion.
A strategy focused solely on the pricing of a product.
A method of market research to understand consumer behavior.
A financial analysis tool used to assess company performance.
What is an interest rate?
A percentage charged on borrowed money
A type of investment
A financial institution
A government policy
What is a target market?
A target market is a specific group of consumers that a business aims to reach with its products or services.
A target market is a list of all products a business sells.
A target market is the total population of a country.
A target market is a government agency that regulates businesses.
What is a warranty ex. For a car or product?
A guarantee provided by the seller to the buyer
A type of insurance policy
A loan agreement
A sales contract
What is product liability? What are manufacturers responsible for when creating and selling a product?
Product liability is the legal responsibility of manufacturers for injuries or damages caused by defective products. Manufacturers are responsible for ensuring product safety and quality.
Product liability is the obligation of consumers to report faulty products. Manufacturers are responsible only for advertising their products.
Product liability refers to the responsibility of retailers for setting product prices. Manufacturers are responsible for marketing strategies.
Product liability is the legal duty of distributors to deliver products on time. Manufacturers are responsible for packaging only.
What are the four basic consumer rights? List and define each right.
Right to safety: Products should be safe to use. Right to be informed: Consumers should have access to accurate information about products. Right to choose: Consumers should have a variety of choices available. Right to be heard: Consumers should have a voice in the marketplace.
Right to privacy: Consumers' personal information should be protected. Right to refund: Consumers should always get their money back. Right to free samples: Consumers should receive free samples of all products. Right to discounts: Consumers should always get discounts on purchases.
Right to safety: Products should be safe to use. Right to be informed: Consumers should have access to accurate information about products. Right to return: Consumers should be able to return any product at any time. Right to free delivery: Consumers should get free delivery on all purchases.
Right to be heard: Consumers should have a voice in the marketplace. Right to be entertained: Consumers should be entertained by advertisements. Right to be rewarded: Consumers should receive rewards for every purchase. Right to be followed: Consumers should be followed up after every purchase.
What is a premium?
The regular payment made to maintain insurance coverage (ex. Monthly payment).
A one-time fee paid at the end of an insurance policy.
A refund given by the insurance company for not making any claims.
A penalty charged for late payment of bills.
Fill in the blank: The amount the policyholder pays out-of-pocket before the insurance company covers the claim is called a _________.
Deductible
Premium
Copayment
Coverage
Fill in the blank: A fixed amount paid by the policyholder for a medical service is called a _________.
Co-pay
Premium
Deductible
Out-of-pocket maximum
Fill in the blank: A percentage of the medical cost shared by the policyholder is called _________.
Co-insurance
Deductible
Premium
Copay
Which type of health insurance is a managed care plan with lower costs and limited provider choices, and requires a referral to go to a specialist?
Health Maintenance Organization (HMO)
Preferred Provider Organization (PPO)
Point of Service (POS)
Which type of health insurance offers more flexibility in choosing providers, but has higher costs?
Health Maintenance Organization (HMO)
Preferred Provider Organization (PPO)
Point of Service (POS)
Which type of health insurance combines features of HMOs and PPOs?
Health Maintenance Organization (HMO)
Preferred Provider Organization (PPO)
Point of Service (POS)
