Apex Econ 7.5 Test (CST)

Put the steps in order to show how to put together a personal budget

1. Add up all of your sources of income. 2. Figure out how much money you're spending. 3. Categorize your expenses to show where your spending goes. 4. Determine if your spending is below your income. 5. Reduce expenses in flexible categories to save or increase savings.

Match each type of insurance with a situation in which that insurance would be useful. 1.Collision Coverage 2.Renter's Insurance 3.Disability Insurance 4.Fee-for-service Insurance

1.When your car is damaged in an accident you cause 2.When your personal possessions are stolen from your apartment 3.When you lose your job because of an injury or illness 4.When you want to choose your own doctor or hospital

Which of the following does not protect consumers?

A boycott

Which of these allows you to buy something without waiting until you have the money?

A credit card

What is most similar to a brand-name product?

A generic product

What kind of contract outlines the obligations of a landlord and his or her renters?

A lease

Which of these shows how a loan is paid by listing the principle and interest associated with each payment?

An amortication table

How can consumers get the government to pass laws preventing companies from engaging in offensive behaviors?

By lobbying

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

Why do people come to different decisions using cost benefit analysis even under the same conditions?

Costs and benefits are both subjective

Why do economic decisions vary from person to person even under the same circumstances?

Costs and benefits are subjective.

Which of these most accurately describes the costs and benefits of using a credit card?

Credit cards are convenient but can result in debt

Maintaining a good credit history makes it easier to do what?

Get a loan

What is the annual percentage rate (APR) on a credit card?

The amount of interest charged on unpaid balances

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 are you paying for when you lease a car?

The decrease in the car's value

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

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 does an amortization table show?

The principle and interest being paid on a loan

Which of these states 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 describes a situation in which people have to pay a deductible?

When their insurance policy only covers part of a medical expense

When is liability insurance needed?

When you cause an accident that damages another vehicle or hurts someone

What makes a checking account more convenient than a savings account?

You can spend your money without having to withdraw cash first.

Match each fee or payment with the type of account or insurance it's associated with. 1.Non-sufficient funds fee 2.Mortgage payment 3.Balance transfer fee 4.Deductible

__2__Home loan __4__Health insurance __3__Credit card __1__Checking account

A socially responsible consumer might boycott a company that uses what?

child labor

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 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 is a bank customer's share of the profits made on loans?

Savings account 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

Participating in a boycott often involves a sacrifice because the boycotters end up doing what?

Paying higher prices

Why do consumers have influence over politicians?

Politicians rely on the votes of consumers to keep them in office.

Which of these is an example of a fixed expense?

Rent

Which of these describes the cost and benefits of getting a mortgage?

Mortgages enable people to buy houses but result in large interest payments

What kind of a credit card can customers with a bad credit history get?

One that's secured by collateral