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