Unit 7 Econ Review
Why do economic decisions vary from person to person even under the same circumstances
Costs and benefits are subjective.
Which of these allows you to buy something without waiting until you have the money?
Credit card
With which type of account is an annual fee associated?
Credit card
What statement describes one of the opportunity costs of attending college
The money spent on tuition could've been invested in stocks or bonds.
Which of these statements describes one of the opportunity costs of attending college
Time spent on schoolwork takes away from the chance to earn money at a job.
Which of these statements describes one of the opportunity costs of attending college?
Time spent on schoolwork takes away from the chance to earn money at a job.
Which of these is an example of discretionary spending?
Vacation
What makes a checking account more convenient than a savings account
You can spend your money without having to withdraw cash first.
What makes a checking account more convenient than a savings account?
You can spend your money without having to withdraw cash first.
In which situation would disability insurance be useful
You lose your job because of an injury or illness.
In which situation would disability insurance be useful?
You lose your job because of an injury or illness.
In which situation would fee-for-service insurance be useful
You want to choose your own doctor or hospital.
In which situation would fee-for-service insurance be useful?
You want to choose your own doctor or hospital.
In which situation would renter's insurance be useful
Your personal possessions are stolen from your apartment.
In which situation would renter's insurance be useful?
Your personal possessions are stolen from your apartment.
Which of these shows how a loan is paid by listing the principle and interest associated with each payment?
an amortization table
What do banks pay with some of the profits they make by loaning out the money in their customers' savings accounts
interest on savings accounts
What do banks pay with some of the profits they make by loaning out the money in their customers' savings accounts?
interest on savings accounts
Which of these credit card features would be best for customers who want to pay off the balance on a high-interest credit card?
low fees for balance transfers
What kind of a credit card can customers with a bad credit history get?
one that's secured by collateral
What do leases contain
the obligations of renters and landlords
What does an amortization table show?'
the principle and interest being paid on a loan
Why do some auto insurance customers want medical coverage for their policies
to avoid having to pay for hospital bills resulting from an accident they cause
Why do some auto insurance customers want medical coverage for their policies?
to avoid having to pay for hospital bills resulting from an accident they cause
Under what circumstances do people have to make a copay
when they go to a doctor because of an illness
Which of these statements describes the costs and benefits of getting a mortgage
Mortgages enable people to buy houses but result in large interest payments.
What provides collateral to secure a car loan?
The car
Under what circumstances do people have to make a copay?
when they go to a doctor because of an illness
What does an amortization table show
'the principle and interest being paid on a loan
Which of these can be used to express customer dissatisfaction
A boycott
Which is the opposite of a generic good
A brand-named good
What does an amortization table give you information about
A loan
What does an amortization table give you information about?
A loan
How can consumers get the government to pass laws preventing companies from engaging in offensive behaviors
By lobbying
Which of these allows someone to buy a car that costs more than he or she can afford
Car loan
Which of these allows someone to buy a car that costs more than he or she can afford?
Car loan
Why do people reach different decisions using cost-benefit analysis even under the same conditions?
Costs and benefits are both subjective.
With which type of account is an annual fee associated
Credit card
What makes a credit card more convenient than a debit card
It can be used to buy things without immediate payment.
What does a good credit history do for consumers
It makes it easier for them to get loans.
Which sacrifice are boycotters likely to make
Paying higher prices
Which of these is an example of a fixed expense
Rent
Using a budget is a good way to what
Stay out of debt
Which of these statements describes a situation in which people have to pay a deductible
Their insurance policy only covers part of a medical expense.
Which of these is an example of luxury spending
Travel
Which of these is an example of discretionary spending
Vacation
What is the grace period on a credit card
the number of days the customer can wait to pay for purchases without being charged interest
What do leases contain?
the obligations of renters and landlords
What do banks pay to their savings account customers
Interest
What do banks pay to their savings account customers?
Interest
What makes a credit card more convenient than a debit card?
It can be used to buy things without immediate payment.
What does a good credit history do for consumers?
It makes it easier for them to get loans.
What is most similar to a brand-name product
A generic product
Which of these items helps you avoid debt by keeping your expenses below your income
A personal budget
Which of these items helps you avoid debt by keeping your expenses below your income?
A personal budget
Which of these can be used to protect consumers from unsafe products
A recall
What makes a savings account a better investment than a checking account
A savings account earns interest.
What makes a savings account a better investment than a checking account?
A savings account earns interest.
Which of these protects customers who purchase defective products
A warranty
Which is the first step in making a personal budget
Add up all sources of income
Which is the first step in making a personal budget?
Add up all sources of income
Which of these fees is the biggest problem for customers who need to use their credit card to take money from an ATM
Cash advance fee
Which of these fees is the biggest problem for customers who need to use their credit card to take money from an ATM?
Cash advance fee
With which type of account is a minimum balance fee associated
Checking Account
With which type of account is a minimum balance fee associated?
Checking Account
A socially responsible consumer might boycott a company that uses what
Child labor
Which of these statements describes the costs and benefits of taking a college loan
College loans help increase future earning power but result in a long-term commitment to monthly payments.
Which of these statements describes the costs and benefits of taking a college loan?
College loans help increase future earning power but result in a long-term commitment to monthly payments.
Why do people reach different decisions using cost-benefit analysis even under the same conditions
Costs and benefits are both subjective.
Which of these allows you to buy something without waiting until you have the money
Credit card
Which of these statements most accurately describes the costs and benefits of using a credit card
Credit cards are convenient but can result in debt.
Which of these statements most accurately describes the costs and benefits of using a credit card?
Credit cards are convenient but can result in debt.
Which of these makes it easier for a person to get a credit card
Good credit history
Which of these makes it easier for a person to get a credit card?
Good credit history
With which type of account is a mortgage payment associated
Home loan
What kind of contract outlines the obligations of a landlord and his or her renters
Lease
What kind of contract outlines the obligations of a landlord and his or her renters?
Lease
Which of these strategies might result in the government passing a law preventing companies from engaging in unfair or offensive business practices
Lobbying
Which of these statements describes the costs and benefits of getting a mortgage?
Mortgages enable people to buy houses but result in large interest payments.
Which would cause a boycott to fail
Most consumers didn't stay away from the company.
Which of these is made easier by maintaining a good credit history
Obtain a loan
Which of these is made easier by maintaining a good credit history?
Obtain a loan
Why do consumers have influence over politicians
Politicians rely on consumers' vote
Which is the last step in making a personal budget
Reduce expenses in flexible categories.
Which is the last step in making a personal budget?
Reduce expenses in flexible categories.
Which step in the budget-making process is the best way to offset an unexpected financial obligation
Reduce expenses in flexible categories.
Which step in the budget-making process is the best way to offset an unexpected financial obligation?
Reduce expenses in flexible categories.
Which of these would a socially responsible company use
Renewable resources
Which of these is an example of a fixed expense?
Rent
Why does a savings account make a better investment than a checking account
Savings accounts earn interest.
Why does a savings account make a better investment than a checking account?
Savings accounts earn interest.
Using a budget is a good way to what?
Stay out of debt
What is one of the primary concerns of socially responsible consumers
Sustainability
What does it take for a consumer boycott to be successful
The boycott must significantly reduce the target company's profits.
What provides collateral to secure a car loan
The car
Why might a letter-writing campaign get a company to change its business practices
The company might fear that the letter-writing campaign will become a boycott if it doesn't respond.
What's the difference between a brand-name and a generic product
The company that sells the product
Why might a company respond to a letter-writing campaign launched by a group of concerned consumers
The letters contain a veiled threat that economic pressure could follow.
Why does attending college involve an opportunity cost
The money spent on tuition cannot be invested in another way.
Why does attending college involve an opportunity cost?
The money spent on tuition cannot be invested in another way.
What statement describes one of the opportunity costs of attending college?
The money spent on tuition could've been invested in stocks or bonds.
Which of these statements describes a situation in which people have to pay a deductible?
Their insurance policy only covers part of a medical expense.
Because subjective decisions are based on a person's unique values and beliefs, which statement is true about economic decisions
They vary from person to person.
Because subjective decisions are based on a person's unique values and beliefs, which statement is true about economic decisions?
They vary from person to person.
Which of these statements describes a situation in which people have to make a copay
They visit a doctor.
Which of these statements describes a situation in which people have to make a copay?
They visit a doctor.
What is the main reason to use a personal budget
To stay out of debt
What is the main reason to use a personal budget?
To stay out of debt
Which of these is an example of luxury spending?
Travel
Why does a credit card make it easy to go into debt
You can buy something before you have enough money to pay for it.
Why does a credit card make it easy to go into debt?
You can buy something before you have enough money to pay for it.
Which of these shows how a loan is paid by listing the principle and interest associated with each payment
an amortization table
Which of these credit card features would be best for customers who want to pay off the balance on a high-interest credit card
low fees for balance transfers
What kind of a credit card can customers with a bad credit history get
one that's secured by collateral
What is a bank customer's share of the profits made on loans
savings account interest
What is a bank customer's share of the profits made on loans?
savings account interest
What kind of customer would want collision coverage for his or her auto insurance
someone concerned about causing damage to his or her own car
What kind of customer would want collision coverage for his or her auto insurance?
someone concerned about causing damage to his or her own car
What is the annual percentage rate (APR) on a credit card
the amount of interest charged on unpaid balances
What is the annual percentage rate (APR) on a credit card?
the amount of interest charged on unpaid balances
What are you paying for when you lease a car
the decrease in the car's value
What are you paying for when you lease a car?
the decrease in the car's value
What is the grace period on a credit card?
the number of days the customer can wait to pay for purchases without being charged interest
What does a lease outline
the obligations of renters and landlords
What does a lease outline?
the obligations of renters and landlords
What is a cash advance
the use of a credit card to take money from an ATM
What is the purpose of a letter-writing campaign conducted by a group of consumers
to get a company to voluntarily change its business practices
When is liability insurance needed
when you cause an accident that damages another vehicle or hurts someone
When is liability insurance needed?
when you cause an accident that damages another vehicle or hurts someone
Why do economic decisions vary from person to person even under the same circumstances?
Costs and benefits are subjective.
With which type of account is a mortgage payment associated?
Home loan
