econ test questions

Consumer decisions are made by which of the following processes? marginal decision process Illogical decision process conflicted decision process all or nothing decision process

marginal decision process

Nominal GDP is: A. the inflation adjusted GDP B. The real GDP minus depreciation C. The current dollar GDP D. The constant dollar GDP

C. The current dollar GDP

Legal process when assets of debtor are liquidated as a last resort in severe financial trouble A. diversification B. deductions C. bankruptcy D. liquidity

C. bankruptcy

Insurance coverage for your car against vandalism or theft, weather, and animal incidents A. convertible B. collision C. comprehensive D. currency

C. comprehensive

In a market economy, who decides what goods and services are produced? A. producers B. Congress C. consumers D. local government

C. consumers

Which is NOT a way to protect yourself from having identity theft happen online & offline? A. shred documents with personal info B. read privacy policies C. keep your social security card in your wallet D. look over statements carefully

C. keep your social security card in your wallet

Expansion, peak, contraction, and trough are the four phases of A. unemployment B. development C. the business cycle D. monetary policy

C. the business cycle

To Adam Smith, the "invisible hand" refers to A. the government B. his faith in the charity of others C. the free market. D. the generosity of businesses in a capitalist system.

C. the free market

Which of the following is likely to have the greatest influence over your lifetime earnings? A. the government B. your boss C. your knowledge and skills D. the local Wage Board

C. your knowledge and skills

___________ is a safety net program that provides healthcare.

CHIP

This type of bankruptcy allows the debtor to keep his or her property and pay debts over a period of 3-5 years. Chapter 7 Governmental method Chapter 13 Liquidation method

Chapter 13

Which of the following is the largest category of earned income? Overtime pay Capital gains Gratuities and bonuses Salaries and wages Interest income

Salaries and wages

When the Federal Reserve lowers the reserve requirement, the lending ability of banks _______

increases

A home inspection all of these is done after the home is purchased. should be done by a licensed building inspector. should only be done for properties with sale prices of $500,000 or more.

should be done by a licensed building inspector.

Price floors create surpluses shortages equilibrium a lack of demand

surpluses

A tax on imported goods is a _____________________. tariff licensing requirement embargo quota

tariff

The government is NOT likely to address a positive externality using subsidies taxes laws regulations property rights

taxes

In the circular flow of the economy ________ are leakages and ________ are injections.

taxes and savings loans and exports

The monetary policy-making body of the Federal Reserve System is the Federal Reserve regional banks and branches. the Federal Open Market Committee the Board of Governors of the Federal Reserve System. the Federal Reserve Board Chairman and the Secretary of the US Treasury.

the Federal Open Market Committee

You earn $1,300 working at a summer job. You decide to put it into an account and leave it there for four years while you are in college. The principal will earn 1.5% simple interest. How much will you have in your account at the end of four years? $1,378 $1,410 $1,200 $1,466

$1,378

Automobile insurance with the split limits 200/300/400 will cover up to how much in bodily injury per person? $100,000 $200,000 $300,000 $400,000 $600,000

$200,000

Using the 7/70 method, a person with an $80,000 annual income should purchase how much life insurance? $490,000 $7 million $392,000 $700,000 $49,000

$392,000

If an insurance policy covers individual losses up to $10,000 and has a deductible of $500, the insured will be paid how much in the event of a covered loss of $5,000? $9,500 $5,500 $4,500 $10,000 $500

$4,500

Which of the following is not included in a net worth statement? Balances on credit cards that total $15,000. $50 per month for a gym membership $400 per month for school loans; the current balance is $25,000. $300 in a checking account.

$50 per month for a gym membership

If Romeo's Racket Ball business has sales for the month of 10,000 racketballs and a racketball sells for $15, what is Romeo's accounting profits per month given the explicit costs below? Rent of $10,000 Utilities of $1,000 Labor costs of $2.50 per racketball Material costs of $2.50 per racketball Executive salaries of $39,000 $0 $50,000 $100,000 $25,000

$50,000

For anyone born in 1960 or later, the full retirement age when they can collect Social Security benefits is ______ .

67

You swerve to avoid an animal in the road and cause a car accident. ● You and the driver of the other car were the only people involved in the accident. You were not injured. ● You have a 50/100/50 liability insurance policy with no deductible. ● You have collision insurance with a deductible of $1,000. ● The other driver's bodily injury claim is $60,000 for medical expenses related to a broken leg. ● The other car was valued at $25,000 and requires $7,000 in repairs. ● Your car was valued at $13,000 and requires $15,000 in repairs. ● The accident damaged a city light pole that will cost $1,800 to replace. 1. the total amount your liability insurance will pay for the accident 2. the total amount your collision insurance will pay for the accident 3. the amount of additional damages you are responsible for as a result of the accident

1. 50 Bodily Injury Coverage-$50,000 per person for injuries. 100 Overall Maximum Coverage-$100,000 will be paid out for injuries total per accident. 50 Property Damage Coverage-$50,000 per accident will be paid for the damage you do to the property of others. 50,000 (bodily injury maximum) + 7,000 (repairs on car) + 1,800 (cost of light pole) = $58,800 2.Collision insurance is a coverage that helps pay to repair or replace your car if it's damaged in an accident with another vehicle or object, such as a fence or a tree. 13,000 (value of car, because it was totaled) - 1,000 (deductible) = $12,000 3.10,000 (bodily injury extra) + 1,000 (deductible) = $11,000

A tax on goods that are brought into the country A. Quota B. Item Line Tax C. Tariffs D. Embargo

C. Tariffs

Last year the price level was 100 and this year's price level is 134. Based on this information, the annual inflation rate was ______

34%

If the marginal benefit of the first donut is 30 , the marginal benefit of the second donut is 15, and the marginal benefit of the third donut is 10, what is the total benefit from eating 2 donuts? 35 20 15 10 45

45

You have $2,000 to invest at 1.5% interest. The rule of 72 predicts it will be doubled in _____ years.

48

What is an advantage of buying a vehicle? *This question has multiple correct answers. Please state all of them. A. No mileage penalty- drive as much as you like! B. Lower payments C. You can modify your car D. You get an unlimited warranty

A C

A good credit score would be A. 700 B. 660 C. 590 D. 450

A. 700

In International trade, a nation that can produce a good at a lower opportunity cost has a/an A. Comparative Advantage B. Absolute Advantage C. Trade Advantage D. Comparative Disadvantage

A. Comparative Advantage

Anything that a tax payer uses to lower taxable income examples: charity donations A. Deduction B. Net Income C. Dependant D. Gross Income

A. Deduction

Luke is a recent college graduate. He is applying for several jobs, which unemployment is this A. Frictional B. Fractional C. Structural D. Seasonal

A. Frictional

This form is used by an employer to verify an employee is eligible to work in the U.S. A. I-9 B. W-2 C. W-4 D. 1098

A. I-9

Transformation from a private to public company when a company sells stock for the 1st time A. Initial Public Offering (IPO) B. Transaction C. Stock exchange D. Return

A. Initial Public Offering (IPO)

Jennifer has an auto policy of 20/40/10. The 20 covers A. Per person bodily injury B. Property damage per occurrence C. Per occurrence bodily injury limit D. Total amount of insured coverage

A. Per person bodily injury

The 4 Ps of Marketing include A. Product, Price, Place, Promotion B. Product, Price, Promotion, Pace C. Purple, Puce, Place, Promotion D. Produce, Place, Price, Promotion

A. Product, Price, Place, Promotion

Method for calculating how long or at what rate your investment will require to double in value A. Rule of 72 B. Investment Rule C. Dow Jones Index D. S & P 500

A. Rule of 72

What is a basic principle of the law of demand? A. The lower the price, the more people will buy B. the higher the price, the more people will buy C. everyone has a limited income that they will spend D. services are of interest the same way that goods are

A. The lower the price, the more people will buy

PPO plans cost more, but are more flexible. A. True B. False

A. True

The IRS requires employers to report wages & salary info for employees on Form ______. A. W-2 B. W-4 C. 1099 D. I-9

A. W-2

Which is worth more? A. dollar today B. dollar a year from now C. they are worth the same

A. dollar today

Changing monetary policy to expand or contract the money supply will cause A. interest rates to change B. supply and demand to change C. government revenues to change D. the national debt to change

A. interest rates to change

What are the three factors of production? A. land, labor, capital B. traditional, market, centrally planned C. What to produce, how to produce, and for whom to produce. D. resources, money, and trade

A. land, labor, capital

Which of the following is NOT an example of a public good? A. shopping malls B. national parks C. highways D. municipal libraries

A. shopping malls

Which of the following is taxed at a rate higher than the general sales tax in Virginia? All of these Aircraft Alcohol and tobacco School supplies during a tax holiday Food consumed at home

Alcohol and tobacco

Insurance agency a bank may use to insure your money up to $250,000? A. FICA B. FTC C. FDIC D. FTA

C. FDIC

An oligopoly is a market structure with __________ sellers and _______________ .

Answer 1:few Answer 2:some barriers to entry

Jamie is laid off after the plant she works for has a bad quarter. Which type of unemployment? A. Fractional B. Cyclical C. Structural D. Business

B. Cyclical

Marginal Cost is... A. Cost to produce a product B. Extra cost to produce an additional product C. Extra benefit to produce a product

B. Extra cost to produce an additional product

Type of car insurance that covers accidents you are responsible for? A. Collision B. Liability C. Accident D. Your-Fault

B. Liability

Elasticity measures the consumers response to a change in A. Purchasing Power B. Price C. Money Supply D. Government Spending

B. Price

James pays 4% of his income in taxes, John pays 8%. John is paid more. Which tax is this A. Proportional B. Progressive C. Regressive D. Marginal

B. Progressive

Which of the following organizations is primarily focused on increasing free trade globally? A. The IMF B. The WTO C. The World Bank D. The United Nations

B. The WTO

A diagram used to show the exchange of goods between households and firms in a market economy A. production possibilities curve B. circular flow model C. supply and demand curve D. Lorenz Curve

B. circular flow model

The use of government spending and taxes to influence the economy is known as A. budgetary policy B. fiscal policy C. monetary policy D. reserve policy

B. fiscal policy

Form W-4 A. identifies salary and wages earned B. identifies the number of withholdings chosen C. identifies a beneficiary D. indicates the federal income tax withheld

B. identifies the number of withholdings chosen

The principle that we have unlimited wants, but limited resources with which to fill them A. Opportunity Cost B. Scarcity C. Business Cycles D. Economics

B. scarcity

If the actual inflation rate is lower than the expected inflation rate, this is Bad for borrowers but good for lenders. Bad for both borrowers and lenders. Good for borrowers but bad for lenders. Good for both borrowers and lenders.

Bad for borrowers but good for lenders.

The _________________ can be used to check on a business and make sure they are reputable. Consumer Education Center Better Business Bureau Confidence Business Analyst Society Firelands Economic Association

Better Business Bureau

Calculate the following (compounded annually): $5,000 at 1.5% for 4 years. A. $5,009.82 B. $5,506.82 C. $5,306.82 D. $6,306.82

C. $5,306.82 5000 x 1.5% = 300 + 5000

You invest $5000 at 8% interest, using the rule of 72 how long will it take to double your money A. 72 months B. 72 years C. 9 years D. 8 years

C. 9 years 72/8=9 years

As price increases, the quantity demanded _______. A. Increases B. Stays the Same C. Decreases D. Demand doesn't change

C. Decreases

Marginal benefit is... A. Extra money to consumer gets B. Extra Utility producer experience C. Extra Utility consumer experience D. Extra Money the producer gets

C. Extra Utility consumer experience

This part of your car insurance policy pays for damages to your car in case you are in an accident. Uninsured motorist Overall vehicle Comprehensive Collision

Collision

_____ covers damage to your car in case of theft or vandalism.

Comprehensive

If the Federal Reserve sold government bonds it would be conducting ________________

Contractionary monetary policy .

Which of these is a financial institution owned by the account holders? Credit Union Payday lending shop check cashing outlet Commercial bank

Credit Union

Goods that see an increase in demand as the result of a fall in income are considered A. Complementary Goods B. Substitute Goods C. Normal Goods D. Inferior Goods

D. Inferior Goods

Which of the following is not a factor of production? A. Land B. Labor C. Human Capital D. Monetary Capital

D. Monetary Capital

Safety for healthcare workers is mostly regulated by _______? A. CPSC B. EEOC C. EPA D. OSHA

D. OSHA

When lenders look at your creditworthiness, which is NOT one of the 5 C's of credit? A. character B. capital C. capacity D. charity

D. charity

Annuities are savings accounts that are paid out ____________________. A. all at once B. in one lump sum C. when you kick the bucket D. in payments over a period of time

D. in payments over a period of time

Real GDP is the same as A. current dollar GDP B. interest rate adjusted GDP C. nominal GDP D. inflation adjusted GDP

D. inflation adjusted GDP

Type of loan with specified terms such as interest rate and length of time for repayment. A. credit card account B. unsecured loan C. incidental credit D. installment loan

D. installment loan

The value of your next best alternative whenever you make a choice A. rational buying choice B. alternative cost C. determining cost D. opportunity cost

D. opportunity cost

Form with your bank statement that allows you to balance your register with your bank statement A. application form B. W2 form C. budget worksheet D. reconciliation form

D. reconciliation form

The first step in the PACED decision making model is to __________

Define the problem .

Funds that are left over after you have paid for the necessities of food, clothing, and shelter are called ____________________________ Expenditure funds Savings Mandatory Funds Discretionary funds

Discretionary funds

This act makes it illegal for creditors to discriminate against a credit applicant on the basis of race, color, religion, national origin, sex, marital status, age, or because the applicant receives public assistance. Fair Credit Billing Act Fair Debt Collection Practices Act Card Accountability, Responsibility, and Disclosure Act Equal Credit Opportunity Act

Equal Credit Opportunity Act

Your creditworthiness is measured by a number called a ______________

FICO score

_______________ use depositors' savings to earn income by lending money to borrowers.

Financial institutions

Are fixed costs considered to be anticipated or unanticipated costs? Are variable costs considered to be anticipated or unanticipated costs? Fixed costs are unanticipated costs and variable costs are unanticipated costs. Fixed costs are anticipated costs and variable costs are unanticipated costs. Fixed costs are unanticipated costs and variable costs are anticipated costs. Fixed costs are anticipated costs and variable costs are anticipated costs.

Fixed costs are anticipated costs and variable costs are anticipated costs.

Which of these is required to get a mortgage? A cosigner all of these A listing of all possessions to be kept inside the home Homeowner's insurance

Homeowner's insurance

Individuals who purchase a house with a mortgage might be required to purchase which of the following? All of these Life insurance Health insurance Disability insurance Homeowners' insurance

Homeowners' insurance

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

I and III

Which of the following is an example of active fiscal policy action? Reducing the reserve requirement Increasing the discount rate Reducing the personal and corporate income tax rates Increasing the interest rate paid on government bonds

Reducing the personal and corporate income tax rates

______ marketing attracts customers by creating content and experiences that connect to potential customers.

Inbound

Assume that real GDP has been declining and the unemployment rate has been edging upward. What might the Congress and the president do about this problem? Decrease transfer payments to the disabled Increase spending on road construction Decrease funding for food stamps Increase taxes on small businesses

Increase spending on road construction

Car loans are good examples of _________________________________

Installment closed end credit

What is the major disadvantage of having a regular savings account? Not having enough growth potential Having a minimum amount of money deposited to keep it open Having an expiration date Not being able to access money for a specified amount of time

Not having enough growth potential

_________ protects worker safety.

OSHA

What is the Federal Reserve System's congressionally assigned dual mandate? Price stability and maximum employment Maximum employment and zero inflation Economic growth and price stability Economic growth and maximum employment

Price stability and maximum employment

A _______________________________ shows the maximum combinations of two goods that can be produced when all resources and the best technology is used

Production Possibilities Curve

If tax rates decrease as income falls, the tax structure is Proportional Fair Progressive Flat Regressive

Progressive

Which of the following should you do to keep your information secure online? Purchase and use anti-hacking software All of these Use easy to remember passwords Discard credit card statements immediately Reply to any email you receive

Purchase and use anti-hacking software

A ________ restricts the quantity of imports that are permitted into a country.

Quota

Which of the following people is the best example of a frictionally unemployed individual? Nicholas who lost his job as a real estate salesperson when the housing market weakened during a recession. Samantha who quit her job to find work closer to home and reduce her commute. Aaron who quit his job at a local restaurant and is no longer looking for work since he wants to retire. Charlie who has lost his job at a local factory because of a decrease in exports and can't find a job that matches his skills.

Samantha who quit her job to find work closer to home and reduce her commute.

_________________ are not covered by FDIC insurance at a commercial bank.

Shares of stock

At the end of the month Corrine's budget has money left over. She can either Spend less or save less. Spend more or save less. Spend more or save more. Spend less or save more.

Spend more or save more.

Which of the following are strategies that help in saving for an emergency fund? Start big, focus on the benefits, and treat savings like a bill. Start small, focus on the benefits, and treat savings like an option. Start small, focus on the costs, and treat savings like a bill. Start small, focus on the benefits, and treat savings like a bill.

Start small, focus on the benefits, and treat savings like a bill.

How would you best describe a manufacturing employee who has lost his job because he was replaced by a robot (new technology) and does not have the skills necessary to help operate the robot? Cyclically unemployed. Structurally unemployed. Frictionally unemployed. Seasonally unemployed.

Structurally unemployed.

Which of the following statements about interest rates is true? Variable interest rates are less risky than fixed interest rates The interest rate depends on your credit score All interest rates are variable The APR of a loan includes interest rates, annual fees, and the amount of the principal payment

The interest rate depends on your credit score

A repossession occurs when ______________________________

The seller takes the goods back when the buyer fails to keep up with payments

According to economists, what drives long run inflation? The velocity of money The supply of money The demand of money The value of money

The supply of money

If the investor can deduct the amount of the contribution from their taxable income they are investing in a ___________________ IRA account. general purpose Traditional none of these Roth

Traditional

An American car company sells 200 vehicles to Germany for a total of $600,000, while the United States imports 100 cars from a German car company for a total of $500,000 from Germany. What would the effect of this trade deal be on the United States' GDP? U.S. GDP decreases because net exports are positive. U.S. GDP decreases because net exports are negative. U.S. GDP increases because net exports are negative. U.S. GDP increases because net exports are positive.

U.S. GDP increases because net exports are positive.

The __________ is also called a Wage and Tax Statement and must be submitted with a tax return.

W-2 form

Which of the following choices is NOT one of the three basic economic questions? What goods and services should be produced How should the goods and services be produced When should the goods and services be produced? For whom will these goods and services be produced

When should the goods and services be produced?

Which of the following statements about cosigners and authorized users are correct? Authorized users must be under age 18 Cosigning is illegal in some states Cosigning does not allow you to build your own credit history, whereas being an authorized user does allow you to build your own credit history. When you're an authorized user, you aren't responsible for any missed payments. For a cosigned card, both you and your cosigners are responsible

When you're an authorized user, you aren't responsible for any missed payments. For a cosigned card, both you and your cosigners are responsible

Which of the following individuals will purchase life insurance primarily for the death benefit? Young people with children Older workers planning for their retirement Wealthy seniors planning their estate Middle aged workers focused on capital accumulation None of these

Young people with children

FTAs promote which of the following? lower prices on imports all of these increased output higher levels of trade

all of these

For every A you earn on your report card, your grandma gives you a twenty dollar bill. This is an example of _______________

a positive incentive

Rent control keeps prices of housing below market rates. Which of these is an unintended consequence of rent control? A decrease in the price of utility expenses (electric and natural gas) for the housing A shortage of housing An increase in the price of utility expenses (electric & natural gas) for the housing An increase in the quantity of housing available

a shortage of housing

If the country of Wiffleville has exports of $450 million and imports of $380 million, they are operating with ______________. negative net exports a trade deficit a trade surplus balanced trade

a trade surplus

Contracts do which of the following? All of these Encourage economic activity Create a legal agreement enforceable by law Specify the terms of an agreement between parties Facilitate trust between parties in a market

all of these

Consumer complaints associated with credit cards include issues with which of the following? Billing Interest rates All of these Collections Advertising

all

Which of the following decreases the chances a person should purchase life insurance? Large savings All of these No dependents Low debt Paid off mortgage

all

Which of the following government agencies provide(s) consumer information about goods and services? FDA CPSC CFPB All of these FTC

all

Which of the following is a consumer right? To choose To be heard To be informed To be safe All of these

all

Which of the following is a mandatory payroll deduction? FICA Social Security taxes State income taxes All of these Federal income taxes FICA Medicare taxes

all

Which of the following is a qualifying life event for changing health insurance coverage? Getting married All of these Moving to a new state Involuntarily losing health insurance coverage Having a baby

all

Which of the following is a step to take to avoid credit card fraud? All of these Sign your card as soon as you receive it Store your card in a secure place Be sure to secure your receipt after you buy something on credit Notify the card issuer immediately if you lose your card

all

Which of the following is a type of employee benefit? Paid vacation and sick days Parking Child care All of these Health insurance

all

Which of the following is an example of a tax credit? Foreign taxes EIC Retirement saving Childcare expenses All of these

all

Which of the following is an example of human capital? good health all of these on-the-job training job experience education

all

Which of these is a reason that producers may choose to import raw materials(resources) from foreign countries? all of these better quality of resources than in domestic country lower cost than domestic products resources are unavailable in the domestic country

all

Leasing a car might be a good option for someone who always wants to drive a newer car drives a lot of miles every year wants to own the car at the end of the term wants to customize their car

always wants to drive a newer car

If American farmers sell part of their corn production to Mexican consumers, their sale represents a trade surplus for the United States and a trade deficit for Mexico an export for the United States and an import for Mexico. a trade deficit for the United States and a trade surplus for Mexico an import for the United States and an export for Mexico

an export for the United States and an import for Mexico.

Antitrust laws make ______________ illegal.

anti-competitive behavior

Which of the following are examples of goods as opposed to services? apple, car repair, pair of shoes apple, car, pair of shoes apple, car, shoe shine movie theater ticket, car, pair of shoes

apple, car, pair of shoes

The _______________ ultimately determines the products that a command economy produces.

government

A lower amount will be paid for an insurance claim when the coverage is for ___________

cash value .

The money supply in the United States is made up of currency, coins, and _______

balances in bank accounts

Which of the following are monetary policy tools? changing the discount rate and government spending open market operations and tax changes changing the reserve requirement and open market operations government spending and tax changes

changing the reserve requirement and open market operations

A ___________ is an example of earned income.

commission

When interest is earned not only on principal but also earned on interest, it is referred to as compound interest duplicated interest simple interest returned interest

compound interest

Under __________________________ , the desires of the consumers control the goods that will be produced

consumer sovereignty

Which of these is NOT one of the 5 Cs of credit? cosign collateral capacity character

cosign

The _______________ is the maximum amount of available credit a cardholder may access disclosure agreement credit line (credit limit) APR penalty

credit line (credit limit)

The country of Alphaville has a trade deficit of $60 million. To decrease this deficit, Alphaville must either increase exports or _____________ .

decrease imports

If the price of oranges, a substitute for apples, increases. what will happen to the demand for apples? demand for apples will increase there will be a movement along the demand curve for apples demand for apples will stay the same demand for apples will decrease

demand for apples will increase

When the price of hot dogs decreases, what happens in the market for the complementary good of hot dog buns? demand decreases, decreasing price and quantity supply decreases, decreasing price and quantity supply increases, increasing price and quantity demand increases, increasing price and quantity

demand increases, increasing price and quantity

If consumers expect the price of a product to be higher In the future, what will happen to the demand for the product today? demand will decrease demand will increase quantity demanded will decrease quantity demanded will increase

demand will increase

Generally speaking, a car is what type of asset? business asset appreciating depreciating wealth building

depreciating

As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This is called the law of diminishing wants. diminishing requirements. diminishing returns. diminishing utility.

diminishing utility.

The relationship between price and quantity supplied is typically direct vertical negative indirect

direct

Which of the following types of insurance covers the insured if they are unable to work for an extended period of time due to an injury? health disability long-term care

disability

Renting would be better than buying for an individual who __________________________ does not want to need to pay for maintenance and upkeep expenses wants to paint the walls bright colors plans on staying at their home for at least 20 years. wants to own several large dogs and a few cats.

does not want to need to pay for maintenance and upkeep expenses

Total revenue minus explicit and implicit costs equals which of the following? accounting profit economic profit foregone profits excess profits

economic profit

Most renters and all homeowners will both need to pay monthly for _____________ electricity a new furnace washing machine payments their mortgage payment

electricity

Which of these is a positive incentive to get you to return books on time to the library? entering you in a drawing to win a laptop when the books are returned on time suspending your borrowing privileges until the book is returned decreasing the number of books you can check out a time for the next yea a fine that must be paid when you return the book

entering you in a drawing to win a laptop when the books are returned on time

Virginia does not collect _________

estate taxes .

Tax ______ is illegal.

evasion

Suppose the federal government attempts to combat a recession by purchasing a new fleet of warships for the Navy produced by a US manufacturer. What type of economic policy is the government conducting? contractionary fiscal policy expansionary monetary policy expansionary fiscal policy contractionary monetary policy

expansionary fiscal policy

What is the term that describes a form of money that has no intrinsic value and is money by government decree? Commodity Cash Fiat Bank note

fiat

A budget is a plan for spending money based on income, expenses and ________ financial goals liabilities assets net worth

financial goals

In the circular flow model households sell labor to __________________ in exchange for _________________

firms wages

In the circular flow model, firms are buyers in which market and sellers in which market? firms sell in the resource market and buy in the product market firms sell in the product market and buy in the resource market firms sell in the product market and buy in the product market firms sell in the product market and buy in the product market

firms sell in the product market and buy in the resource market

In making a decision about the costs of postsecondary education, these costs should be compared to potential number of years working in a career. future potential earnings. potential number of years in postsecondary education the length of time to pay off private loans.

future potential earnings.

Which of the following is true of a payday loan? It is All of these long-term. generally for a small amount. an inexpensive way to borrow money. a secure loan.

generally for a small amount.

Examples of unanticipated income include gifts, scholarships, inheritances wages, bonuses, inheritances gifts, bonuses, allowances gifts, bonuses, inheritances

gifts, bonuses, inheritances

A government budget surplus occurs when government revenues exceed expenditures. the government makes loans. government expenditures exceed revenues government prints too much money

government revenues exceed expenditures.

The types of student aid that typically do not need to be repaid include scholarships and federal student loans private loans grants loans on an extended repayment plan

grants

The federal government spends the most on which of the following? Road construction and repair Public welfare Public education Public safety Healthcare

healthcare

Which of the following is NOT a public good provided by the government? roads bridges police and fire protection healthcare national defense

healthcare

Which of the following is a major spending category of the federal government? healthcare transportation education police and fire protection public safety

healthcare

Which of the following is a result of increased investment in human capital? lower education costs lower job benefits higher earnings all of these reduced job security

higher earnings

Medicare part A covers ___________________ dental care doctor visits prescriptions hospitalizations

hospitalizations

A worker's skills knowledge and experience are known as factory capital human capital producer capital consumer capital

human capital

When a country buys goods from other countries, these goods are called __________

imports

The federal government relies most heavily on which type of revenue? income taxes sales taxes fines and fees property taxes estate taxes

income taxes

When quantity demanded is less than quantity supplied, price will fall causing quantity demanded to _________ and quantity supplied to ________

increase decrease

With an Adjustable Rate Mortgage (ARM), the interest rate paid over the life of the loan will _________________ increase or decrease as the prime rate changes always be lower than a fixed rate mortgage change every 5 years in predictable patterns not change for the life of the loan

increase or decrease as the prime rate changes

Implicit costs are __________ costs or the opportunity costs of using resources _____________ in production.

indirect owned by the firm

If income decreases and consumers purchase more of a product, the product is considered to be a/an ___________

inferior good

Being aware of the Federal Reserve's monetary policy and how it can affect interest rates can impact planning for major purchases. When interest rates rise the Federal Reserve is combating _________ and makes it _____________ expensive to finance a car or a home loan. unemployment; more inflation; more unemployment; less inflation; less

inflation; more

Corporations selling stock for the first time are offering ____________________ initial public offerings (IPO) Price to Earnings Ratios (P/E) Secondary Market Access (SMA) Dividends

initial public offerings (IPO)

With inelastic demand, consumers are relatively _______ to changes in prices.

insensitive

To calculate the future value of money, you need to know the amount of money you have now, the number of periods, and the __________________ interest rate per period unemployment rate inflation rate consumer confidence ratio

interest rate per period

The relationship between price and quantity demanded typically is ________

inverse

The collection of all the different types of investments that belong to an individual is a(n) _____. investment portfolio bond fund stock market initial public offering

investment portfolio

Entrepreneurs are primarily motivated by ___________ .

profit

When the US dollar becomes weaker, which of the following is true? it becomes more expensive for the French to buy American goods it becomes more expensive to travel abroad it becomes cheaper for Americans to buy German cars all countries trading with the US will experience higher prices on American goods

it becomes more expensive to travel abroad

Which of the following are characteristics of competitive markets? large number of buyers and sellers, differentiated products, ease of entry large number of buyers with few sellers, homogenous products, ease of entry large number of buyers and sellers, homogenous products, barriers to entry large number of buyers and sellers, homogenous products, ease of entry

large number of buyers and sellers, homogenous products, ease of entry

With elastic demand, the percentage change in quantity is ____________ the percentage change in price.

larger than

________________ is a formal legal contract between a renter and a landlord. lease renter's insurance policy evaluation matrix application

lease

Cory gives his friend money to buy a cheeseburger since he forgot his wallet at home, but expects to be repaid. This represents the financial service of: Borrowing Saving Lending Investing

lending

_____________ coverage does not cover the cost of the insured's car repairs.

liability

Gross domestic product measures the_______ in the economy in a given time period. market value of final goods and services produced market value of old and new final goods and services sold number of final goods and services produced number of final goods and services sold

market value of final goods and services produced

In a ___________________ economy, the government is minimally involved in the functioning of the economy but does act to protect consumers and impose some regulations on the market.

mixed

The United States most closely resembles which type of economic system? Traditional Mixed Centrally planned Market Command

mixed

the Federal Open Market Committee has the authority to decide the nations ___________

monetary policy

Which of the following is not one of the categories of economic resources? Money Capital Labor Land

money

Homeowners will need to pay monthly on their ______ , but renters will not have this bill.

mortgage payment

When inflation occurs, the impact on savings is positive negative positive then negative no effect

negative

When the government requires safety inspections for cars it is trying to limit a market failure due to ____________

negative externalities

An accident caused by texting and driving is an example of a(n) _______

negative externality

When using the PACED decision making model you should choose the alternative with the highest ____________ net value scarcity price opportunity cost

net value

Scarcity exists when there are _______ resources available to satisfy all the competing uses a. too many b. just enough c. not enough d. no

not enough

Life insurance that offers both death benefit protection and a cash value component with no specified period of coverage is called ________ life insurance.

permanent

A product's target market is part of which of the 4 P's of marketing? Promotion Price Product Place Preferences

place

Which of the following is a NOT public good provided by the government? Clean water National defense Police protection Roads Pollution

pollution

Typically, there is a _____________ between real GDP and employment.

positive relationship

In general, job security and human capital tend to be __________

positively related .

The ___________ for a health insurance policy must be paid whether or not the insured has any healthcare costs.

premium

In the market for cell phones, if the supply of cell phones increases what will happen to the price and quantity of cell phones? price will increase and quantity will increase price will decrease and quantity will decrease price will increase and quantity will decrease price will decrease and quantity will increase

price will decrease and quantity will increase

Which of these groups responds to the incentive of higher profits? voters consumers savers producers

producers

What is measured by how many goods and services a worker produces in an hour? productivity gross domestic product standard of living corporate profits

productivity

What is the relationship between quantity demanded and supplied at equilibrium? quantity demanded is less than quantity supplied quantity demanded is greater than quantity supplied quantity demanded increases beyond quantity supplied quantity demanded equals quantity supplied

quantity demanded equals quantity supplied

It is illegal to refuse to rent to a potential tenant due to their ______ .

race

Economic growth is best measured by percent changes in ______

real GDP

__________ is another term for a contraction in the business cycle.

recession

The process of matching your personal records with the banks records of transactions is called ________________________ falsifying identifying reviewing reconciling

reconciling

If a low income family pays 15% of their income in taxes and a high income family pays 5% of their income in taxes, the tax system is regressive excessive unfair proportional progressive

regressive

The first step in the four-step process to address consumer complaints is to ______________

return to the place of purchase .

The chance you take of making or losing money on your investment is known as income risk recession reward

risk

Fish in the ocean are nonrival and nonexcludable nonrival and excludable rival and nonexcludable rival and excludable rival and nonreplenishible

rival and nonexcludable

If an investor might be in higher tax bracket at retirement than they are during their earning years, they should choose a(n) ___ IRA.

roth

The savings option that has a low return but is very liquid given that it is easy to convert to cash is a _________ .

savings account

In repaying direct subsidized federal student loans, interest payments begin when the borrower has a job for one year at graduation six months after graduation as soon as the money is borrowed

six months after graduation

Using a special device that records credit or debit card information is called _______ .

skimming

A share of ownership in a company is known as _____

stock

A share of ownership in a company is known as a _____ .

stock

Net worth is calculated by dividing assets by liabilities subtracting liabilities from assets adding liabilities to assets subtracting assets from liabilities

subtracting liabilities from assets

A benefit of placing money in a savings account is that your money _____________

will earn interest

The FAFSA application identifies for students which of the following? the estimated family contribution and the amount of private loans available to the student the estimated family contribution and the amount of financial aid available to the student the estimated family tax deductions and the amount of financial aid available to the student the estimated family contribution and the colleges to which the student will be admitted

the estimated family contribution and the amount of financial aid available to the student

Opportunity cost is the value of the opportunities provided when a good is purchased. the marginal benefit of consuming a good. the additional cost of purchasing a good. the value of the next best alternative. total net benefit.

the value of the next best alternative.

An individual can begin collecting Social Security benefits at age 62; however, their income tax rates increase substantially their spouse will not be eligible to receive any Social Security benefits their payments will stop after 10 years their payments will be lower than if they wait until their full retirement age

their payments will be lower than if they wait until their full retirement age

Money is created by commercial banks when they make loans. they hold more reserves than are required. they call in loans. they issue currency to replace worn out currency.

they make loans.

Which of these is not true about entrepreneurs they will always make a profit they take calculated risks they encourage economic growth through new ideas they incur losses when their business or ideas are not successful

they will always make a profit

When a country exports more than it imports, the difference is called a ____________ .

trade surplus

The economic term that describes the satisfaction that consumers gain from consuming goods and services is pleasure benefit utility want

utility

Once individuals can claim the contributions they make as well as those made by their employer, they are said to be __________ in the plan. This usually requires working for an employer for a specified period of time. associated connected vested attached

vested

A(n) __________ is when both parties are willing and agree to exchange a product for an agreed upon value. benefits of trade voluntary exchange costs of trade involuntary exchange

voluntary exchange

Which of the following is also called an Employee Withholding Allowance certificate? W-9 formI-9 formNone of these I-9 form None of these W-2 form W-4 form

w-4 form

Which of these best describes the invisible hand theory of Adam Smith? the individual can only succeed in an economy if there is no government intervention doing what is best for you as an individual will never benefit society as a whole when we act to better ourselves, society as a whole also benefits society must vote as to the best course of action to take

when we act to better ourselves, society as a whole also benefits

An open economy means that countries will trade with each other specialize in the production of goods where they have absolute advantage will only produce goods that cannot be produced anywhere else will not trade with each other at all

will trade with each other

When you take money out of an account, it is called a withdrawal deposit payment debit card

withdrawal

If you can't pay your rent on time, your landlord can remove your property from the unit. you can eventually be evicted. All of these you can not be forced to pay a late fee. your parents will be contacted and asked to pay it.

you can eventually be evicted.