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Summer Final Practice part 1 2025

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.
What does this information indicate about investment following the period depicted?
a)
High returns in the economy is growing. Investors should expect lower returns
b)
Low returns the economy is in decline. Investors should expect low returns.
c)
Stock prices to decrease. Economy is in growing. Stocks should remain low.
d)
Stock prices to increase. Economy is declining. Stocks should decline.
2.
A hurricane hits the southeastern United States. During that time, citizens have limited access to drinkable water and gasoline for their vehicles and generators. Without Government intervening, what happens to gasoline?
a)
citizens purchase gas substitutes
b)
demand for gasoline will decline
c)
temporary shortage will result in a price decrease
d)
price of gasoline will increase
3.
If OPEC announces an oil embargo, what happens?
a)
gasoline prices rise and there is a surplus
b)
gasoline prices rise and there is a shortage
c)
gasoline prices decrease and there is a shortage
d)
gasoline prices decrease and there is a surplus.
4.
Europe votes to raise tariffs on US Steel, what happens?
a)
they want to increase trade with the US
b)
they want to protect their own steel industry
c)
they want to lower the cost of steel in Europe
d)
they want to raise demand for steel in Europe
5.
Miguel invests $5,000 in an account that is expected to issue a 2% rate of return. Based on the Rule of 72, what should Miguel expect from this investment?
a)
36 years to double in value
b)
72 years to double in value
c)
in 36 years the investment will decline
d)
in 72 years the investment will decline
6.
When a population's wants and needs exceed the productive resources under the population's control what happens?
a)
shortage of goods and services
b)
falling prices of goods and services
c)
surpluses of goods and services
d)
falling demand of goods and services
7.

Newspaper states "US Officials announce new subsidies for the agricultural industry" What is the intended effect on US agriculture?

a)

Intended to reduce the level of competition domestically.

b)

Intended to help farmers meet demand.

c)

Intended to increase profits by raising prices

d)

Intended to encourage imports to lower domestic costs

8.

For market economy, which is correct?

a)

Free enterprise, opportunity to profit motivates businesses

b)

Government directs production in command economies not free enterprise

c)

Free enterprise systems have high competition, and you get higher prices

d)

Free enterprise investors should expect stock to decrease.

9.

What advantage is there to investing in one mutual fund instead of one company's stock?

a)

Mutual funds signify ownership in a company.

b)

Diversifying investments can reduce risk of loss.

c)

Mutual funds provide dividends

d)

Diversifying investments increases short term returns.

10.

Which year would the economy be the healthiest?

a)

2008, with unemployment of 8%, and 1% inflation

b)

2010, with 10% unemployment, and 5% inflation

c)

2012, with 6% unemployment and 1% inflation

d)

2014, balance between low unemployment and low inflation

11.

High inflation is threatening economic growth, What's the best way to reduce inflation?

a)

increase government spending and taxes

b)

increase government spending decrease taxes

c)

decrease government spending, increase taxes

d)

decreasing both government spending and taxes

12.

The Smith family earns $10,000 per month. They want to increase their savings but they cannot earn more money at this time. What is the most responsible expense to reduce?

Mortage $2000

Food $2000

Entertainment $2000

Savings $500

Car Payments $1000

Utilities $400

a)

car payments

b)

entertainment

c)

utilities

d)

mortgage

13.

What's the best year for a consumer to take out a 5 year loan to buy a car?

a)

1970 inflation fell from 1970-1972. Change benefits lenders

b)

1972, inflation began to rise in 1972 then rapidly in 1973 inflation benefits borrowers

c)

1975, inflation fell following 1975. Change benefits lenders

d)

1977, inflation rose following 1977

14.

Two friends each spend $500 to buy an Xbox. Aaliyah used her savings, and Mateo used his credit card with a rate of 24.99%. Matero plans to pay the minimum of 3% each month. How will the amount the two friends paid differ??

a)

Aaliyah will pay more because Mateo received a discount by using his credit card

b)

Mateo will pay more because he has to pay interest on his credit card.

c)

Aaliyah will pay more because she has to pay sales tax

d)

Mateo will pay more because Aaliyah gets a discount for cash.

15.

Tax Cuts and Jobs Act (TCJA) reduced corporate tax rates, income tax rates, and doubles estate tax exemption.

The Infrastructure and Investment Jobs Act (IIJA) authorized $1.2 trillion in government spending on transportation, energy and broadband.

What was the intention of these policies?

a)

reduce domestic competition

b)

combat inflation

c)

promote economic growth

d)

lower prices for consumers