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WorksheetsFinal Exam Fall 2025
Total questions: 76
Worksheet time: 45mins
Which term refers to the total market value of all final goods and services produced within a country in a given period?
Gross Domestic Product (GDP)
Net National Product (NNP)
Consumer Price Index (CPI)
Producer Price Index (PPI)
What is the primary function of the Federal Reserve System?
Printing currency
Regulating the money supply
Collecting taxes
Setting fiscal policy
Which policy involves the government adjusting its spending and tax rates to influence the economy?
Monetary policy
Fiscal policy
Trade policy
Regulatory policy
If the government runs a budget deficit for several years, what is the most likely impact on the national debt?
The national debt will decrease
The national debt will increase
The national debt will remain unchanged
The national debt will be eliminated
A government implements expansionary fiscal policy during a recession. What is the intended effect on the economy?
Slow down economic growth
Increase unemployment
Stimulate economic growth
Reduce inflation
Explain how GDP can be used to compare the economic performance of two countries over time. What factors should be considered to ensure a fair comparison?
Only compare nominal GDP values
Adjust for population size and inflation
Ignore exchange rates
Use only the latest year’s data
Suppose Country A has a higher GDP than Country B, but Country B has a higher GDP per capita. What does this suggest about the relative economic well-being of the populations in these countries?
Country A’s population is wealthier
Country B’s population is wealthier on average
Both countries have the same economic well-being
GDP per capita is not relevant
Which term describes the flow of money from households to businesses in exchange for goods and services?
Investment
Consumption
Saving
Taxation
What is the law of demand?
As price increases, quantity demanded increases
As price decreases, quantity demanded increases
As price increases, quantity demanded stays the same
As price decreases, quantity demanded decreases
Evelyn owns the only electricity supply company in her city. Which market structure does this situation represent?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
What is a tariff?
A tax on imported goods
A subsidy for exports
A quota on domestic production
A price ceiling
If the exchange rate for the U.S. dollar increases compared to the euro, what happens to U.S. exports to Europe?
They become cheaper for Europeans
They become more expensive for Europeans
They stay the same price
They are banned
A local bakery buys flour from a mill and sells bread to customers. Which best describes the interdependence between the bakery and the mill?
The bakery depends on the mill for resources, and the mill depends on the bakery for revenue
The bakery and mill operate independently
The bakery provides resources to the mill
The mill sells bread to the bakery
A smartphone manufacturer notices that when the price of its phones drops from $800 to $600, sales increase. Which law does this scenario illustrate?
Law of supply
Law of demand
Law of diminishing returns
Law of opportunity cost
A grocery store competes with several other stores in the area, each selling similar products. Which market structure does this represent?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
A U.S. car company wants to sell cars in Japan but faces a quota limiting the number of cars it can export. What type of trade barrier is this?
Tariff
Subsidy
Quota
Embargo
If the Japanese yen becomes stronger against the U.S. dollar, how might this affect Japanese tourists visiting the United States?
Their trips become more expensive
Their trips become less expensive
No change in cost
They cannot travel
A family decides to spend more money at local restaurants, which leads to increased hiring by those businesses. Explain how this scenario demonstrates the interdependence between households and businesses.
Households provide labor to businesses
Households' spending increases business revenue, allowing businesses to hire more workers
Businesses provide goods to households for free
Households and businesses do not interact
A clothing store notices that when it lowers prices during a sale, it sells more items. Using evidence from this scenario, explain how prices influence demand in a market economy.
Lower prices decrease demand
Lower prices increase demand, as shown by higher sales during the sale
Prices do not affect demand
Higher prices increase demand
A country imposes tariffs on imported steel to protect its domestic industry. Evaluate the potential benefits and drawbacks of this trade barrier for consumers and producers.
Tariffs lower prices for consumers and hurt domestic producers
Tariffs raise prices for consumers but help domestic producers by reducing foreign competition
Tariffs have no effect on prices or competition
Tariffs only benefit foreign producers
A U.S. electronics company earns revenue in euros from European sales. If the euro weakens against the dollar, analyze how this change in exchange rate affects the company's profits.
Profits increase because euros are worth more dollars
Profits decrease because euros are worth fewer dollars
Profits stay the same
Profits are unaffected by exchange rates
Which of the following is a Factor of Production?
Land
Labor
Capital
Taxes
If the price of coffee increases, what is likely to happen to the quantity supplied by coffee producers?
It will decrease
It will increase
It will stay the same
It will be eliminated
Which market structure is characterized by a few large firms dominating the market?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
Which of the following is a benefit of international trade?
Increased variety of goods
Higher prices for consumers
Reduced competition
Limited access to resources
If the U.S. dollar weakens against the British pound, what is likely to happen to British imports into the United States?
They become cheaper for Americans
They become more expensive for Americans
No change in price
Imports are banned
Imagine a farmers' market where many sellers are offering identical apples. Which market structure does this scenario represent?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
How did Georgia become the state with the third-largest film industry, trailing only California and New York?
The government funded the construction of advanced sound studios.
The government funded the creation of film schools at state universities.
The government created tax incentives to encourage studios to film in the state.
The government raised the state minimum wage to attract more skilled workers.
Where do the bankers bank?
The Federal Reserve
The World Bank
Commercial Banks
Credit Unions
Where is the 6th federal reserve district located?
Minneapolis, MN
Dallas, TX
Atlanta, GA
Chicago, IL
How many Federal Reserve Districts are there?
5
7
10
12
What organization is known as the "Fed"?
Federal Bureau of Investigation
Federal Reserve System
Federal Crop Insurance Corporation
Federal Deposit Insurance Corporation
Who does the FOMC consist of?
7 Fed District Presidents and 5 Board of Governors
12 Board of Governors
7 Board of Governors and 5 Fed District Presidents
12 Fed District Presidents
What is scarcity in economics?
The unlimited availability of resources
The limited nature of resources compared to wants
The process of making goods
The act of trading goods
Which term describes the additional benefit received from consuming one more unit of a good or service?
Marginal cost
Marginal benefit
Total cost
Opportunity cost
Which of the following is a factor that can influence the standard of living in a country?
Access to education
The color of the national flag
The number of sports teams
The length of the coastline
Scarcity forces individuals, businesses, and governments to:
Ignore their needs
Make choices about how to use limited resources
Increase the supply of resources
Eliminate all wants
Which of the following best describes rational decision-making?
Making choices based on emotions
Comparing marginal benefits and marginal costs before acting
Ignoring opportunity costs
Choosing randomly
Which economic system allows individuals the most freedom in making economic choices?
Command economy
Market economy
Traditional economy
Mixed economy
Which of the following is an example of a marginal cost?
The total cost of producing 100 units
The cost of producing one additional unit
The average cost per unit
The fixed cost of production
How does a command economy influence the choices of individuals and businesses?
By allowing complete freedom in decision-making
By having the government make most economic decisions
By encouraging competition
By relying on tradition
Which factor is most likely to improve the standard of living in a nation?
Increased access to healthcare and education
Decreased production of goods
Higher unemployment rates
Reduced international trade
How might a mixed economy influence the choices of businesses compared to a pure market economy?
Businesses have no freedom in either system
Businesses in a mixed economy must consider both market forces and government regulations
Businesses in a mixed economy ignore consumer demand
Businesses in a pure market economy are controlled by the government
A country with high literacy rates, advanced technology, and strong infrastructure is likely to have:
A low standard of living
A high standard of living
No impact on standard of living
Decreased economic growth
Which of the following is the best definition of a budget?
A plan for managing income and expenses over a period of time
A list of all debts owed
A record of past purchases
A type of investment account
What is the primary purpose of a credit score?
To determine eligibility for government benefits
To measure a person's creditworthiness for borrowing money
To calculate annual income
To track spending habits
Which of the following is an example of a fixed expense in a personal budget?
Monthly rent payment
Grocery shopping
Entertainment spending
Clothing purchases
Which type of account typically offers the highest interest rate for savings?
Checking account
Certificate of deposit (CD)
Regular savings account
Cash under a mattress
If you want to increase your net worth, which of the following actions would be most effective?
Increase your savings and reduce your debts
Spend more on entertainment
Take out more loans
Ignore your budget
How can using a credit card responsibly help your personal finances?
By building a positive credit history and improving your credit score
By increasing your debt with no benefits
By avoiding all forms of payment
By spending without limits
Which of the following is a benefit of investing in a diversified portfolio?
Reduces risk by spreading investments across different asset types
Guarantees high returns
Focuses all money in one stock
Avoids all market fluctuations
If you are comparing two savings accounts, one with a 1% annual interest rate and one with a 2% annual interest rate, which account will earn you more interest over time, assuming all other factors are equal?
The account with a 1% interest rate
The account with a 2% interest rate
Both accounts will earn the same
Interest rates do not affect earnings
Which of the following is a primary purpose of insurance in personal finance?
To protect against financial loss from unexpected events
To increase your monthly expenses
To avoid paying taxes
To guarantee investment returns
Which of the following is an example of an opportunity cost in personal finance?
Choosing to spend money on a vacation instead of saving for college
Receiving a paycheck
Depositing money in a savings account
Paying a utility bill
What is the purpose of a W-4 form when starting a new job?
To determine the amount of federal income tax to withhold from your paycheck
To apply for a loan
To open a savings account
To report investment income
Why is it important to review your credit report regularly?
To check for errors or signs of identity theft
To increase your credit score automatically
To avoid paying bills
To close your bank account
A student is considering taking out a student loan to pay for college. What should they evaluate before making this decision?
The total cost of the loan, interest rates, repayment terms, and potential future income
Only the amount of money they can borrow
The color of the college logo
The number of classes offered
What type of taxes were used to help fund the renovations to Matthews Field?
FLOST
SPLOST
Property Taxes
Income Taxes
Match the Definition to the correct Vocabulary word
Floating Local Option Sales Tax
FLOST
Special Purpose Local Option Sales Tax
SPLOST
Form that is required to be sent to you from your employer by January 31
W-2
Form that you fill out when you start a job that indicates how much will be withheld from you paycheck for taxes
W-4
Form that you fill out when you start your job that verifies that you are eligible to work in the United States
I-9
What is the term for the amount you are responsible for paying out of pocket before your insurance coverage begins?
Premium
Deductible
HMO
POS
What is the term for the maximum amount you have to pay for covered services in a policy period before your insurance covers 100% of the costs?
Out-of-Pocket Deductible
Premium
Out-of-Pocket Maximum
Out-of-Network
How is a deductible different from an out-of-pocket maximum?
a deductible is paid monthly, while an out-of-pocket max is paid only if you see a doctor
A deductible is paid by the insured person, while an out-of-pocket max is paid by the insurance company
A deductible is the minimum the insured person pays before insurance kicks in, while the out-of-pocket max is the most the insured person pays for care
A deductible is used for doctor's visits, while the out-of-pocket max is used for hospital visits.
Which of the following best demonstrates a positive work ethic in the workplace?
Arriving late but staying after hours to finish tasks
Consistently completing tasks on time and taking responsibility for mistakes
Waiting for others to take the lead on all projects
Using Social Media during work hours
Which statement best explains the connection between education and future earnings?
The more education someone gets the fewer job opportunities they have.
Employers ignore education and only look at personal interests
Investment in education and training usually increases skills, making workers more valuable and leading to higher earnings
Training and education guarantee a worker will become wealthy
A positive work ethic, __________, and ________ are considered important skills for success in the workplace.
Punctuality
Teamwork
Arriving late
Both A & B
Which government agency primarily protects consumers in banking, credit and financial services?
Environmental Protection Agency (EPA)
Federal Deposit Insurance Corporation (FDIC)
Food and Drug Administration (FDA)
Department of Transportation (DOT)
Which act requires lenders to clearly disclose the true cost of borrowing, including interest rates and fees?
Fair Debt Collecting Practices Act
Equal Housing Act
Truth in Lending Act
Fair Credit Reporting Act
What was the primary purpose of the Dodd-Frank Act of 2010?
To regulate environmental safety in manufacturing
To establish guidelines for fair treatment in housing and mortgages
To create transparency in credit reporting for consumers
To increase consumer protections in financial services and reduce risky practices by banks
Which of the following situations BEST represents how a Ponzi scheme operates?
An investor is promised high returns, but their "profits" are actually paid using money from new investors instead of real business earnings
A criminal installs a device at a ATM to steal debit card numbers
A company inflates stock prices through false advertising and then quickly sells shares
A scammer sends fake emails to trick victims into providing personal information
Which is the BEST way to protect yourself from identify theft when dealing with unknown emails?
Always open attachments to check if they are important
Delete the email without opening attachments or clicking links
Respond to the sender asking for clarification
Forward the email to a friend for advice.
Which of the following is an example of phishing?
A scammer digging through trash to find old bank statements
An email pretending to be your bank asking you to click a link and enter your password
A person using a hidden device to copy credit card numbers from a gas station pump
A criminal stealing a wallet with credit cards inside
If the economy is experiencing high unemployment, which fiscal policy action is most appropriate?
Increase taxes and decrease spending
Increase interest rates
Decrease the money supply
Decrease taxes and increase spending
Ticket sales are down for our Upson-Lee Knights Football team, the school decides to temporarily reduce the price of the tickets. What type of fiscal policy is the school using?
Expansionary
Contractionary
Monetary
Neutral
