2 pt

1. Basic Economics Economic Indicators Money Budgeting Misc 1pt 1 pt 1 pt 1pt 1 pt 2 pt 2 pt 2pt 2pt 2 pt 3 pt 3 pt 3 pt 3 pt 3 pt 4 pt 4 pt 4pt 4 pt 4pt 5pt 5 pt 5 pt 5 pt 5 pt

2. What is the basic problem of economics?Pricing ScarcityConsumer behaviorGovernment policies

3. What is the basic problem of economics?Scarcity

4. What goods and services should be produced, how they should be produced, and who should share in what I s produced are three basic questions addressed by:Market economiesCommand economiesMixed economiesAll economies

5. What goods and services should be produced, how they should be produced, and who should share in what I s produced are three basic questions addressed by:All economies

6. The value of the next best alternative that has to be given up for the action that is chosen is theFactor of productionTrade-off.Opportunity costProductivity

7. The value of the next best alternative that has to be given up for the action that is chosen is the Opportunity cost

8. Which of the following is a function of money?Interest-bearing instrumentCheckable depositsMedium of exchangeStability of value

9. Which of the following is a function of money?Medium of exchange

10. What are the FOUR Factors of production?

11. What are the FOUR Factors of production?land, labor, capital, and entrepreneurship

12. High unemployment is usually a sign that a. The economy is getting betterb. Government spending is on the increasec. Purchasing has slowedd. Government has increased the money supply

13. High unemployment is usually a sign that c. Purchasing has slowed

14. Economists use economic indicators toa. determine national income and real GDP.B. explain the depreciation of capital goods.C. decrease government regulation in many industries.d. assess the economy and predict its future course.

15. Economists use economic indicators tod. assess the economy and predict its future course.

16. The total dollar value of all the nation’s final goods and services produced over the course of a year is calleda.net exportsb.national income accountingc.disposable personal income (DPI)d.gross domestic product (GDP)

17. The total dollar value of all the nation’s final goods and services produced over the course of a year is calledgross domestic product (GDP)

18. What happens when inflation occurs?

19. What happens when inflation occurs? The purchasing power of the dollar decreases

20. The part of the business cycle in which the economy starts to slow down is called a

21. The part of the business cycle in which the economy starts to slow down is called a Contraction

22. The Dow Jones Industrial Average is:A mutual fundAnother name for the S&P 500Traded over-the-counterA stock market index

23. The Dow Jones Industrial Average is:A stock market index

24. The Federal Reserve System was established toa. ensure a safe and uniform currency.b. regulate thrift institutions.c. establish a gold standard.d. control the amount of money in circulation.

25. The Federal Reserve System was established toa. ensure a safe and uniform currency.

26. An APR of 16% means you paya.$16 per year on every $100 you oweb. $16 per year on every $1000 you owec. $16 per month on every $100 you owed. A $16 annual fee

27. An APR of 16% means you paya.$16 per year on every $100 you owe

28. Compared to a stock, a bond provides aa. higher dividend.B. higher level of risk.C. lower dividend.d. lower level of risk.

29. Compared to a stock, a bond provides ad. lower level of risk.

30. To what agency must you file your taxes?a. Federal Reserve b. Supreme Courtc. Internal Revenue Service d. Federal Deposit Insurance Corporation

31. To what agency must you file your taxes?c. Internal Revenue Service

32. Expenses that fluctuate (change each month) areFixed expenses Variable expensesRegular expensesWithholding

33. Expenses that fluctuate (change each month) areVariable expenses

34. What do you have to pay when you borrow funds?Principal plus collateral Principal plus interest The amount you borrowedTwice the amount of the loan

35. What do you have to pay when you borrow funds?Principal plus interest

36. Give an example of a fixed expense

37. Give an example of a fixed expense Mortgage, rent, insurance, car payment

38. __________________ is the process of comparing the bank balance to the checkbook balance.a. Check registerb. Restrictive endorsementc. Reconciling (balancing) the accountd.Net deposit

39. __________________ is the process of comparing the bank balance to the checkbook balance.c. Reconciling (balancing) the account

40. A credit card is:a. credit which must be repaid in a series of equal paymentsb. pre-approved credit which can be used for the purchase of goods and services now andpayment of them laterc. a plastic card that is electronically connected to the cardholder’s bank accountd. None of the above

41. A credit card is:b. pre-approved credit which can be used for the purchase of goods and services now andpayment of them later

42. It is easier to start your own business in a Command economyControlled economyTraditional economyFree enterprise system

43. It is easier to start your own business in a Free enterprise system

44. The economic goals of the American free-enterprise system include Freedom, equity, and growthProfit, traditions, and government controlSocialism that evolves into pure communismChoice, central planning and security

45. The economic goals of the American free-enterprise system include Freedom, equity, and growth

46. The interaction of supply and demand determines theElasticityPrice ceilingEquilibrium priceMarginal utility

47. The interaction of supply and demand determines theEquilibrium price

48. When the tax rate increases as your income goes up, this is an example of:Progressive taxesRegressive taxesProportional taxesRecessive taxes

49. When the tax rate increases as your income goes up, this is an example of:Progressive taxes

50. If the price of a product is above its equilibrium price, the result is DemandSurplusShortageBlack market