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Personal Finance & American Economy (Ch 18-22) Flashcards | StudBud
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Personal Finance & American Economy (Ch 18-22)
Personal Finance & American Economy (Ch 18-22)
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1
George is a producer of red pens. George's goal in a free enterprise is what?
to make as many red pens as possible
to buy red pens at the lowest cost possible
to make as much profit as possible
to do what the government dictates
2
Read the scenario
partnership
sole proprietorship
corporation
cooperative
3
Costs faced by a producer that can change depending on the circumstances are called
variable costs
fixed costs
total costs
marginal costs
4
This law states supply is determined by consumers demand for products or services.
law of supply
law of demand
law of supply and demand
5
Read the scenario
capital
entrepreneurship
labor
land
6
Answer the question below
government regulation
resource price
quality of natural resources
rate of productivity
7
Which of the following is
NOT
one of the four basic factors of production?
entrepreneurship
labor
time
natural resources
8
Which of the following is an example of investment in capital?
provide employees discount gym memberships to stay in shape
pay for employees to get a graduate degree
reinvest company profits in updated technology
provide medical plan for employees to avoid missing work
9
A disadvantage of sole proprietorships is the complex legal structure
False
True
10
If a purchase for a product can be delayed, it is
inelastic demand
inelastic supply
elastic demand
elastic supply
11
Read the scenario
When will it be produced?
How will it be produced?
What should be produced?
For whom will it be produced?
12
What is the best explanation for the drop in “Money Spent on Entertainment” in September?
an increase in available credit
a change in payroll deductions
a change in demand
a decrease in income
13
Read the scenario
all socks would sell b/c it would be the equilibrium $
surplus
no socks would be produced b/c it would be the equilibrium $
shortage
14
What is the benefit to buying a home instead of renting?
Homeowners accumulate value in their homes
Homeowners have less home maintenance costs
Homeowners generally have lower monthly payments on homes
Homeowners pay less in property taxes
15
Miriam received a check in the mail due to the increased value of her stock. What is this?
capital gain
dividend
investment
stock
16
An advantage of a corporation is the ease of raising financial capital
False
True
17
Who would most likely engage in a lockout?
a worker
an owner
a union member
18
Phil's monthly income is $3000; his take home pay is $2100. What happened to Phil's income?
It was stolen by his employer
It was taken out to pay excise and estate taxes
It was taken out to pay fines and user fees
It was taken out to pay income & social security taxes
19
Businesses have the responsibility of being transparent with the public.
True
False
20
Frank and his 2 brothers have owned an Italian bistro in the Philadelphia for nearly 23 years.
monopoly
partnership
sole proprietorship
corporation
21
A decrease in the price of iFuzzy iWuzzys will result in
decrease in demand
increase in demand
increase in quantity demanded
decrease of quantity demanded
22
If a desired item is in short supply, then that item is...
rare
affordable
renewable
scarce
23
Which choice describes how goods pass from producers to consumers in a free enterprise system?
voluntary exchange
taxes and subsidies
capital investment
consumer sovereignty
24
Read the scenario
theory of free enterprise exchange
economic equilibrium
law of supply and demand
supply
25
Read scenario and answer the question
circular flow of economic activity
economic independence
monetary cycle
money flow
26
North Carolina and most southern states allow unions
True
False
27
This law is based on consumers willingness and ability to purchase a good at the right price
law of demand
law of supply
law supply and demand
28
The costs of producing each additional unit (just one more) of a particular product is
variable costs
total costs
marginal costs
fixed costs
29
The price at which total supply equals total demand is
consumer demand
consumer price
the middle price
equilibrium price
30
Read the scenario
Charlene will earn more money in her lifetime than Mimi
Charlene will get married before Mimi
Charlene & Mimi will end up earning about the same
Charlene will end up paying less in taxes than Mimi
31
Identify person & idea
: He believed the government should refrain from regulating the market
Adam Smith & laissez-faire
John Smith & command economy
Karl Marx & socialism
John Keynes & deficit spending
32
Which payment method can cause long term problems because of high interest rates?
personal checks
barter
credit cards
currency
33
When the production of a product results in surplus, suppliers reduce the price of the good?
False
True
34
What explains why Anthony failed to balance his budget this month?
He spent too much on entertainment
He forgot to account for income taxes
He neglected to increase his gross income
He had unexpected fixed expenses.
35
What type of banking instrument does this chart most likely describe?
money market account
savings account
checking account
certificate of deposit
36
Read the scenario
his thirst
the price of the popcorn
hunger
the price of the soda
