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Economics and PFL Challenge Flashcards | StudBud
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Economics and PFL Challenge
Economics and PFL Challenge
32 terms
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StudBud Administration
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How much do you know about economics and personal financial literacy?
Flashcards
32 cards
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Questions
32
Answers
1
Which factor determines the wage or salary of a new employee?
availability of workers with similar skills
worker's physical health status
length of commute to work
worker's credit history
2
This is the fee that banks charge customers to borrow money.
stocks
dividends
interest
principal
3
Which is most likely to occur if an industry invests in training its workers?
decline in federal regulations
decline in revenue
increased productivity for that industry
increased competition with other industries
4
Why do responsible consumers use credit or credit cards?
to establish good credit score for getting a loan
to avoid mortgage insurance when buying a home
to save money in long-run for big purchases
to make purchases without using cash
5
A company decides to sell stock in the stock market. What kind of biz organization is this?
non-profit organization
corporation
sole proprietorship
limited liability partnership
6
In which circumstance would a shoe store reduce the price of shoes?
Specialization
Shortage
Surplus
Equilibrium
7
What would growing unemployment over extended period of time indicate?
decreasing stock dividends
increase in prices
decrease in number of welfare recipients
contraction phase of biz cycle
8
What term is represented in the graphic?
Equilibrium price
Circular flow
Profit motive
Supply & demand
9
What is the minimum credit score needed for receiving the best interest rates?
500
375
850
720
10
Which expenditure would be paid solely by the federal gov't and not by state or local gov't?
building new public school
repairing sidewalk in major city
building firing range on army base
improving facilities in community park
11
When creating a personal budget, which category should be considered first?
Investment
Variable
Discretionary
Fixed
12
The Gross Domestic Product (GDP) measures
value of all goods and services produced in a year
annual amount of imports from a country
total amount traded to other countries annually
annual amount of exports from a country
13
Your rent or mortgage and car payment are examples of what in your personal budget?
marginal expenses
fixed expenses
variable expenses
opportunity costs
14
Anti-trust laws are designed to stop
insider trading
corporate profits
gambling
monopolies
15
This factor of production includes things like factories, trucks, machines, tools, etc.
Land
Capital
Entrepreneurship
Power
16
The point in the business cycle in which the economy begins to contract
trough
expansion
recession
peak
17
The name of the fee that the Federal Reserve charges for banks to borrow money
reserve requirement
GDP
discount rate
interest rate
18
The Federal Reserve wants to boost the economy. It will do what to interest rates?
Lower
Keep them the same
Raise
19
In the free enterprise system, how are prices for goods established?
profits determine prices
average income determines prices
government determines prices
buyers and sellers determine prices
20
When supply meets demand for a given product, the product is said to be at
equilibrium price
circular flow
a shortage
a surplus
21
Which of the following is a characteristic of a traditional economy?
bartering
gov't control of economy
competition
profit motive
22
How could a national economy achieve a favorable balance of trade?
exporting more than it imports
increasing its money supply
importing goods equal to its exports
meeting trade quotas with industrial output
23
The fundamental economic problem that results from limited resources and unlimited wants
profit motive
scarcity
free market
supply & demand
24
All of the following are examples of consumer protections EXCEPT
pyramid scheme
Equal Credit Opportunity Act
dietary guidelines
national do not call registry
25
This type of for-profit business is owned and operated by one person.
non-profit organization
sole proprietorship
limited liability partnership
corporation
26
North Carolina is strong in all of the following industries EXCEPT
Aerospace engineering
Tourism
Agriculture
Research and technology
27
How do banks use customer deposits?
To control money supply
To distribute profits
To make loans
To invest in stock market
28
How does an American tariff immediately affect businesses that produce goods in the U.S.?
decreasing capital start-up costs
U.S. goods are more competitive in domestic markets
U.S. goods are more competitive in foreign markets
increased subcontracting of services to other countries
29
As stock market indicators steadily improve, the biz cycle is most likely to be in which phase?
peak
trough
expansion
recession
30
What happens to the price if supply of a product increases and demand decreases?
price decreases
price remains the same
price increases
price fluctuates wildly
31
In this economic system, the gov't makes all economic decisions
Market
Traditional
Mixed
Command
32
What is most likely to result from high unemployment?
increase in sales tax
increase in consumer spending
decrease in consumer spending
decrease in need for social services
