What is likely to happen if the price of a new pair of sneakers went up?

Demand for the sneakers would decrease

How do credit card companies make money?

by charging late fees and interest to their customers

How is charging a purchase like getting a loan?

You borrow money from your credit provider in order to pay the store

Why do the prices go down when consumers start saving their money?

Consumers become less willing to spend money on goods and services

What might happen if the demand for a new type of sneaker began rising quickly?

The sneaker company would raise the price of the sneakers

What is the best way to avoid credit card debt? Choose the best answer.

Don't spend more money than you have

Why would your credit provider give you a credit limit?

to prevent you from spending more money than you can pay back

What happens when you don't have enough money to pay for the things you charged?

You end up owing more than the original amount of money you charged

What is one advantage of having a credit card?

It allows you to make purchases without carrying lots of cash

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Hester - Financial Literacy

20 termsStudBud Administration179 plays

Unit 1 - Test 1 Biztown

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Questions 20

Answers

1
Which condition would lead to the highest price?
high supply, low demand
low supply, low demand
high supply, high demand
low supply, high demand
2
The amount of goods and services that consumers are willing and able to buy.
demand
credit
supply
installment plan
3
What is likely to happen if the price of a new pair of sneakers went up?
Demand for the sneakers would decrease
It would be impossible to find a pair in stores
Demand for the sneakers would increase
Merchants would begin offering sales on the sneakers
4
Easy credit can encourage people to make purchases they can't pay off.
False
True
5
When supply increases and demand decreases the result is that the price will go down.
False
True
6
How do credit card companies make money?
by charging late fees and interest to stores and other businesses
by making consumers pay an extra dollar on every purchase
by charging late fees and interest to their customers
by earning interest on the money they have saved up
7
A system in which money is earned, exchanged for goods.
installment plan
credit
supply
economy
8
Which of these is neither a good or a service?
a piano lesson
a meal at a restaurant
a gallon of gasoline
a $20 bill
9
A credit system where payment for merchandise is made in small amounts over time.
credit
demand
installment plan
economy
10
How is charging a purchase like getting a loan?
You borrow money from a bank in order to pay off your credit card
You borrow money from your credit provider in order to pay the store
You borrow the money from an ATM in order to pay your credit provider
You borrow the money from the store in order to pay the credit provider
11
Why do the prices go down when consumers start saving their money?
Demand for currency goes up as people begin saving
Manufacturers start producing fewer products
Demand for goods begins to outpace supply
Consumers become less willing to spend money on goods and services
12
What might happen if the demand for a new type of sneaker began rising quickly?
People would refuse to pay more money for the sneakers
The manufacturer would begin making fewer sneakers
The sneaker company would lower the price of the sneakers
The sneaker company would raise the price of the sneakers
13
When a person organizes and operates a business of their choice.
entrepreneurship
installment plan
supply
credit
14
The total amount of a specific good or service that is available to consumers.
supply
economy
credit
demand
15
According to the laws of supply and demand, when will companies produce more of a product?
When the economy turns downward
When demand increases
When they can sell it for a higher price
When the price people will pay for it goes down
16
What is the best way to avoid credit card debt? Choose the best answer.
Don't spend more money than you have
only use credit cards to buy things that you really want
Pay only the minimum amount each month
Use several credit cards, to avoid putting too much money on one card
17
Money owed, usually as a result of borrowing
entrepreneurship
credit
Economy
demand
18
Why would your credit provider give you a credit limit?
to prevent you from spending more money than you can pay back
to remind you to pay your bill on time
to prevent you from enjoying the things you buy
to prevent you from shopping in certain places
19
What happens when you don't have enough money to pay for the things you charged?
The items you charge become the property of the US government
You end up owing more than the original amount of money you charged
owe the same amount of money you charged, it just takes a while to pay off
You end up owing less than the original amount of money you charged
20
What is one advantage of having a credit card?
It helps you pay off any debts that you may have
It encourages you to budget your money wisely
It prevents you from spending more than you earn.
It allows you to make purchases without carrying lots of cash

Hester - Financial Literacy Flashcards | StudBud