ECON: Unit 4 Test Review

Question 1

All of the following are mandatory deductions from a persons paycheck EXCEPT....

Accepted Answer

health insurance

Question 2

With a mortgage you put your house up as _____ that the bank will receive if loan is not repaid

Accepted Answer

collateral

Question 3

A plumber is an example of what type of labor?

Accepted Answer

Skilled Labor

Question 4

Something that is easily converted to cash is considered

Accepted Answer

liquid

Question 5

men and women (16 years old and over) who are either working or actively looking for a job

Accepted Answer

Civilian Labor Force

Question 6

What is the rate of return on this investment, nominal rate 7% w/ an inflation rate of 4%

Accepted Answer

3%

Question 7

What do you call the amount one pays on an insurance policy?

Accepted Answer

Premium

Question 8

Using the information below, what is the variable expense/cost for the chart below?

Accepted Answer

10

Question 9

Car insurance that covers cost of property damage or injuries to others caused by policy holder

Accepted Answer

Liability

Question 10

What is the 1st thing that should come out of a persons disposable income before anything else?

Accepted Answer

Savings

Question 11

Inflation risk is the risk that......

Accepted Answer

the prices of goods will increase faster than anticipated

Question 12

Which form of labor requires no training?

Accepted Answer

unskilled

Question 13

How do you calculate net worth?

Accepted Answer

subtract a persons total liabilities from their total assets

Question 14

At a 6% interest rate how long would it take for an investment to double? (round all answers)

Accepted Answer

12 years

Question 15

Use the information below, what is this person's disposable income?

Accepted Answer

50

Question 16

What do you find by subtracting what is owed on an asset from its current value?

Accepted Answer

Equity

Question 17

A person working at a fast food restaurant would be considered what type of labor?

Accepted Answer

Semiskilled

Question 18

Which of the following best describes the relationship between return on an investment and risk

Accepted Answer

High risk, high reward

Question 19

Which of the following is a fixed (as opposed to a variable) expense?

Accepted Answer

housing/mortgage

Question 20

Which category of labor has managerial skills and knowledge-based education?

Accepted Answer

professional

Question 21

When you owe money it is consider a/an

Accepted Answer

liability

Question 22

The differences in wage rates between occupations is determined by collective bargaining.

Accepted Answer

Theory of Negotiated Wages

Question 23

The differences in wage rates between occupations is determined by supply & demand.

Accepted Answer

•Traditional Theory of WageDetermination

Question 24

Anything you own that has value is called....

Accepted Answer

an asset

Question 25

Which of the following allows people to keep track of what they make and what they spend?

Accepted Answer

Budget

ECON: Unit 4 Test Review

Questions 25

ECON: Unit 4 Test Review

Questions 25