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Financial Literacy: Midterm Practice Quiz Flashcards | StudBud
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Financial Literacy: Midterm Practice Quiz
Financial Literacy: Midterm Practice Quiz
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1
Trina wants to start a clothing company but lacks sewing machines. Which economic resource does she need?
labor
capital
land
2
A company gives a free stuffed bear to promote its store, but it still costs to make. What concept does this best show?
opportunity cost
lens of scarcity
3
How is international trade MOST likely to impact companies and individuals?
Companies may choose to move their business to a different country.
Goods are no longer allowed to be traded from one country to another.
4
Owen wants to start a tutoring business with space and ideas but no tutors. Which economic resource does he need?
labor
land
capital
5
Why do MOST companies sell shares of stock?
to generate income for the company
to let more people vote on company decisions
6
Some economists look at the world through a “lens of scarcity.” What does this mean?
There is never going to be enough.
There are unlimited resources available on earth.
There will always be more than enough.
7
Roger wants to own part of a major company. How can he buy shares?
invest in the stock market
pay taxes on time
8
The government can make money by borrowing from its population in the form of governmental bonds.
False
True
9
Economists define capital as money used to start a business.
True
False
10
The federal government established a law called the Fair Labor Standards Act in 1938. What does this law do?
It establishes a federal minimum wage for all workers.
It makes sure that all workers are given a safe working environment
It requires that all companies provide workers with health insurance
It provides men and women with equal pay.
11
In economics, what term refers to natural resources like lumber, minerals, and oil?
land
capital
12
What is one of the basic principles of economics?
Society and its individuals have unlimited wants.
If people demand a product, then businesses are required to supply it.
People never put their own interests as their first priority.
13
What is another term for the buying and selling of stocks?
trading
shares
14
Arnold buys tools and ingredients for his cake decorating company. What type of expenditure are these?
labor
capital
15
Investors always make money from investing in the stock market.
False
True
16
As Vincent ages, he seeks high-paying jobs, sales, and fulfilling opportunities. What does his behavior demonstrate?
rational self-interest
lens of scarcity
the law of supply and demand
17
Yosef bought stock, but the company had a terrible year and lost money. What will likely happen to Yosef's investment?
Yosef will lose money from his initial investment.
Yosef will get a share of the profit.
18
A new president promises drastic tax cuts. What is most likely to result from this decrease in taxes?
Citizens will be sad that they don’t get to pay higher taxes.
The number of services provided by the government will increase.
Government programs will be cut or reduced.
19
To fund programs and run smoothly, how does the government most commonly collect money?
invest money in the stock market
collect taxes from citizens
sell useful items for a profit
20
On the New York Stock Exhange, traders submit offers verbally on the floor. What type of stock market is this?
virtual
physical
21
What is TRUE about taxes?
Taxes benefit the government, but they do not benefit the citizens.
Most citizens want to pay the highest amount possible.
The tax money comes out of the citizen’s earned income and overall wealth.
Taxes benefit the citizens, but they do not benefit the government.
22
What is the main reason companies offer free or promotional items and services?
to lure in new customers willing to spend money
to get rid of bad products
to show the public how wealthy the company is
23
Jake hires Emmy to cover his taco truck three days a week. Which economic resource does Emmy represent?
labor
capital
24
Carson lost his construction job due to company cuts. How might his job loss impact his local community?
One person losing a job will not have an impact on a local community.
Carson will have to pay even higher taxes to his local community.
The local community will not need to provide any services for Carson.
Carson will contribute less money to local taxes.
25
What we see as “rational self-interest” as a teenager will likely change a lot when we reach adulthood.
True
False
