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

Consumers become less willing to spend money on goods and services

What is one advantage of having a credit card?

It allows you to make purchases without carrying lots of cash

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

How is charging a purchase like getting a loan?

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

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 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

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

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Hester - Financial Literacy

20 termsStudBud Administration179 plays

Unit 1 - Test 1 Biztown

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Questions 20

Answers

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

Hester - Financial Literacy Flashcards | StudBud