1) A consumer most often pays a deductible
(A) when sharing the cost of a payout. (B)before making an insurance claim. (C) when signing up for an insurance plan. (D) after a company has paid a claim.
2) When entrepreneurs develop new products, other companies also experience growth because they.
(A) immediately copy the successful product. (B) create many companion products.
(C) try to develop their own products. (D) attempt to improve the product.
3) Sean’s mother had to make an emergency purchase of a new tire because her tire went flat while she was traveling to the store. She is not sure how much money she has in her checking account. Which method of payment should she use to be financially responsible?
(A) She should pay by telephone with her debit card. (B) She should pay with a debit card. (C) She should pay with a credit card. (D) She should pay with a check.
4) Which best describes why a company issues stocks?
(A) to increase the company’s value (B) to ensure profits (C) to increase dividends (D) to raise capital
5) What is the best definition of profit?
(A) Profit is the possible income from producing an additional item. (B) Profit is the price of producing one additional unit of a good. (C) Profit is the additional income gained from selling an additional good. (D) Profit is the financial gain from business activity minus expenses.
6) In a mixed market economy, what is a typical way the government can reduce unemployment?
(A) The government can pay for projects to create work. (B) The government can control new factories to provide jobs. (C) The government can create new farm fields to hire workers.
(D) The government can raise taxes to encourage employment.
7) What is one main objective in the study of economics?
A) recognizing the types of services available to everyone B) recognizing the relationship between producers and consumers C) recognizing the reasons that saving money is beneficial
D) recognizing the difference between producers and consumers
8) The factors of production include the number of
A) customers needed to make a profit on a good. B) consumers who show an interest in a good. C) employees needed to manufacture a good.
D) producers who supply the same good.
9) Emma is trying to decide whether to buy a new laptop. As a student, she has a budget and wants to make sure this is the right financial decision. Which question should she ask herself in determining the opportunity cost of this purchase?
A) What will I have to sacrifice if I buy this laptop? B) Can I use credit to buy this laptop? C) Do I need this laptop for my studies? D) Is there a less costly alternative to buying this laptop?
10) Which is a desirable characteristic when choosing a line of credit?
A) rewards program B) annual fee C) amount of down payment D) amount of collateral
11) What is an advantage of an adjustable-rate mortgage?
A) A borrower always knows how much to pay the bank each month. B) A borrower can purchase a home with little financial risk.
C) A drop in interest rates may result in lower monthly payments. D) A rise in interest rates may result in lower monthly payments.