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Personal Finance Week 1 Quiz

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

What do we call it when people want to buy a certain thing?

a)

Demand

b)

interest

c)

curiosity

d)

economics

2.

What is another term for the thing that people want to buy?

a)

demand

b)

economics

c)

interest

d)

supply

3.

If there is more demand than there is supply, what will happen?

a)

The product/goods becomes more expensive.

b)

Things for free!

c)

The prices come down!

d)

Buy-one-get-one-free!

4.

If there is more supply than there is demand--what can happen?

a)

The price doubles.

b)

The products/goods become more expensive!

c)

The product becomes harder to find in stores.

d)

The product can become cheaper/less expensive

5.

What happens when there is too much money and too few goods/products?

a)

Prices go lower?

b)

Recession

c)

economics

d)

inflation

6.

Inflation has (slowly) over time affected this coffee. What happened?

a)

The coffee got less expensive.

b)

There is more coffee now.

c)

There is less coffee now.

d)

The price of coffee has gone up.

7.
Money that has value because the Government declared that it is money.
a)
Fiat Money
b)
Commodity Money
c)
Currency
d)
Coins
8.
Which function of money encourages people to save money?
a)
Medium of Exchange
b)
Store of Value
c)
Unit of Account
d)
Acceptability
9.

Money that has a value as something other than money.

a)

Fiat Money

b)

Commodity Money

c)

Currency

d)

Coins

10.

Inflation reduced people's purchasing power because

a)

the same amount of money buys ore goods and services

b)

the same amount of money buys fewer goods and services

c)

the market basket has to be changed every year

d)

there is not enough money in the economy

11.
At the grocery store last week, you had to decide whether to buy the 14.5 oz can of diced tomatoes for $1.75 or the 28 oz. can of diced tomatoes for $2.44. What is the primary function of money exhibited here? 
a)
Medium of Exchange
b)
Store of Value
c)
Unit of Account
d)
Divisible 
12.

Money or other items generally accepted as payment for goods and services.

a)

Measure of value

b)

Medium of exchange

c)

Scarcity

d)

Store of Value

13.
The definition of Scarcity is...
a)
An unlimited amount of resources to meet limited wants and needs
b)
A limited amount of resources to meet unlimited wants and needs.
c)
When people use time and energy to create events
d)
a city where individuals commit themselves to unlimited wants and needs
14.

Why can’t you always get what you want? (one word)

(a)  

15.

Why is it important for us to understand scarcity?

a)

To ignore the concept of limited resources

b)

To make informed decisions and prioritize needs

c)

To ensure we have unlimited resources

d)

To avoid making any decisions