Which of the following is an example of cyclical unemployment?

A factory worker losing their job during a recession.

What is a key characteristic of a command economy?

The government decides what to produce and how to distribute it.

Which of the following best describes seasonal unemployment?

Unemployment that occurs at specific times of the year

What is a stock dividend?

A payment made by a corporation to its shareholders

What is the definition of debt in economics?

Money that is borrowed and must be paid back

Which of the following statements about mixed economies is accurate?

They combine elements of both market and command economies.

What does Personal Injury Protection (PIP) cover?

Medical expenses and lost wages regardless of fault.

Taxes are how the government __________

Collects money for operations & spending

An income tax is a tax on someone’s:

Value of their earnings from work

Which of the following best describes goods in economics?

Items that can be touched, seen, and measured.

Which of the following is an example of a consumer good?

A smartphone purchased for personal use.

How do services differ from goods in terms of their nature?

Services are intangible activities provided to others.

What is a key advantage of a Roth IRA compared to a traditional IRA?

Tax-free withdrawals in retirement

What is a credit score?

A measure of how good you are at paying off a credit card

Loan you take to pay for a house

In a regressive tax system, taxes are based on:

Rates decreasing as your income increases

Amount you pay to keep insurance coverage

What is one way that individual choice is limited in a command economy?

The government decides what goods are available for purchase.

What is the role of capital in the production process?

It includes man-made resources that enhance productivity.

What is the primary reason that scarcity exists in economics?

There are unlimited wants and limited resources

What is the primary purpose of the Free Application for Federal Student Aid (FAFSA)?

To determine eligibility for financial aid

What is an example of frictional unemployment?

A recent graduate looking for their first job

How does interest affect the total cost of a loan?

It increases the total amount owed over time

In what way do entrepreneurs contribute to economic growth?

By introducing new products and services.

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Econ Exam Quiz All units

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Questions 104

Answers

1
Human capital is The sum of a person's
All of the above
Abilities
Knowledge
skill
2
A want is a basic requirement for survival
False
True
3
Which of the following is an example of cyclical unemployment?
A factory worker losing their job during a recession.
A recent graduate looking for a job.
A worker unable to find a job due to skill mismatch.
A seasonal worker laid off after harvest.
4
What is a key characteristic of a command economy?
Businesses operate independently of government control.
The government decides what to produce and how to distribute it.
Consumers have the freedom to choose their products.
Prices fluctuate based on market demand.
5
Which of the following best describes seasonal unemployment?
Unemployment due to economic downturns
Unemployment that lasts for a long time
Unemployment that occurs at specific times of the year
Unemployment caused by a lack of skills
6
What is a stock dividend?
A fee for buying stocks
A payment made by a corporation to its shareholders
The initial price of a stock
A tax on stock trading
7
Which type of unemployment is linked to the business cycle?
Cyclical unemployment
Frictional unemployment
Structural unemployment
Seasonal unemployment
8
If you live with your parents you can be claimed as a dependent
True
False
9
Depoist insurance helps protect people's
Loans that people take out
Stock investments
Money that is in the bank
Retirement accounts
10
What is the definition of debt in economics?
Money that is saved in a bank
Money that is earned from investments
Money that is borrowed and must be paid back
Money that is given as a gift
11
Direct taxes are paid straight to the Government
False
True
12
Car insurance policies renew every 6 months
True
False
13
Which type of risk is associated with the overall market movement affecting all investments?
Un-diversifiable risk
Diversifiable risk
Interest rate risk
Credit risk
14
This is the most common type of economy in the world
Socialism
Capitalism
Mixed economy
Communism
15
Which of the following statements about mixed economies is accurate?
They have no government regulations.
They rely solely on government planning.
They combine elements of both market and command economies.
They are only found in developing countries.
16
What does Personal Injury Protection (PIP) cover?
Damages for the driver at fault.
Damage to the vehicle in an accident.
Medical expenses and lost wages regardless of fault.
Liability for injuries caused to other drivers.
17
Who collects indirect taxes?
Tax collectors
State government
Businesses/shops
Federal government
18
Having good credit is essential for taking out loans and investments
True
False
19
Taxes are how the government __________
Collects money for operations & spending
Collects data on what people prefer policy-wise
Collects votes in an election
Collects data for the census
20
An income tax is a tax on someone’s:
Value of their property
Value of their earnings from work
Value of their family name
Value of items that they own
21
What does 'interest' refer to when talking about loans?
The repayment period of the loan
The total amount borrowed
The amount of money saved
The cost of borrowing money
22
The process of changing business control from the government to citizens
privatization
Inflation
collectivization
Unionization
23
In a proportional tax system, taxes are based on:
A flat rate that everyone pays
Rates increasing as your income increases
Voluntary contributions based on personal preference
Rates decreasing as your income increases
24
Which of the following best describes goods in economics?
Items that can be touched, seen, and measured.
Services that cater to individual needs.
Products that are consumed quickly.
Activities that provide benefits to others.
25
Which of the following is an example of a consumer good?
A factory machine used to produce goods.
A delivery service for businesses.
A smartphone purchased for personal use.
A software program for accounting.
26
How do services differ from goods in terms of their nature?
Goods are activities that cater to individual needs.
Services are intangible activities provided to others.
Services are tangible and can be stored.
Goods are intangible and cannot be measured.
27
What is a key advantage of a Roth IRA compared to a traditional IRA?
Tax-free withdrawals in retirement
Guaranteed investment returns
Immediate tax deductions on contributions
Higher contribution limits
28
What is a credit score?
The interest rate on your loans
The amount of money you have in the bank
How much you earn annually
A measure of how good you are at paying off a credit card
29
A mortgage is a
Loan you take to pay for a house
Loan you take to pay for rent
Loan you take to pay for a car
Loan you take to pay for a wedding
30
In a regressive tax system, taxes are based on:
Rates increasing as your income increases
A flat rate that everyone pays
Voluntary contributions based on personal preference
Rates decreasing as your income increases
31
A premium is
Amount you pay to keep insurance coverage
Amount you pay to uninsured motorists
Amount you pay before the insurance company
Amount you get from PIP coverage
32
________________ allows for your paychecks to be immediately put into your bank account on pay day
Endorsement
Roth IRA
Fund transfer
Direct Deposit
33
The main cost of college is
Meal plan/room
Transportation
Tuition
Books
34
What is one way that individual choice is limited in a command economy?
Individuals can choose any job they want.
Consumers can freely choose what to buy.
The government decides what goods are available for purchase.
Businesses can operate independently.
35
Most European countries pay _____________ taxes than people here in the United States.
Lower
No
Higher
The same
36
What is the role of capital in the production process?
It includes man-made resources that enhance productivity.
It is the labor force available for production.
It is the entrepreneurial spirit driving businesses.
It refers to natural resources used in production.
37
Most unemployment aid comes from state governments
True
False
38
What is the primary reason that scarcity exists in economics?
There are unlimited wants and limited resources
Resources are abundant and easily accessible.
Governments control all resource distribution.
People do not have any needs or wants.
39
If debt keeps piling up your credit score can go down
False
True
40
Who sets up the budget for the US government
US Supreme Court
US Congress
President
The states
41
This was the main cause behind the 2008 recession
Stock market crash
Housing market bubble
H1N1 pandemic
Student loan debts
42
What is one key advantage of investing in stocks compared to savings accounts?
Lower risk
Potential for higher returns
Guaranteed returns
No fees
43
What can happen if someone borrows too much money?
They may become wealthy
They may receive more loans
They may face bankruptcy
They may increase their savings
44
The main issue economies have to deal with is
Overpopulation
Inflation
Communism
Scarcity
45
Mandatory spending is spending that is:
Required by law
Used in times of crisis such as a pandemic or war
Used to support programs like education
Optional and decided yearly by Congress
46
What is the primary purpose of the Free Application for Federal Student Aid (FAFSA)?
To calculate student loan interest rates
To apply for college admissions
To determine eligibility for financial aid
To register for classes
47
What is an example of frictional unemployment?
A factory worker laid off due to economic downturn
A seasonal worker during winter
A recent graduate looking for their first job
A worker whose skills are outdated
48
How does interest affect the total cost of a loan?
It has no effect on the total amount owed
It makes the loan easier to repay
It reduces the total amount owed
It increases the total amount owed over time
49
When you're renting, a good rule of thumb is to have one paycheck cover the rent payment
True
False
50
These can cause a massive spike in government debt
Low unemployment
Isolation policies
Pandemics
Wars
51
In what way do entrepreneurs contribute to economic growth?
By maintaining existing businesses.
By reducing the workforce.
By introducing new products and services.
By limiting competition.
52
What type of financial aid does not need to be repaid?
Grants
Scholarships
Work-study
Loans
53
What is the main organization that collects taxes?
CIA
IRS
FBI
Department of Education
54
Which of the following best describes the four main factors of production?
Labor, land, capital, and investment
Labor, technology, land, and management
Capital, land, resources, and entrepreneurship
Labor, land, capital, and entrepreneurship
55
What is a common source of financial aid provided by colleges based on academic merit?
Federal Work-Study
Scholarships
Grants
Loans
56
If a farmer in a market economy sees a high demand for apples, what can they do?
They are required to grow a different crop.
They can raise the price of apples to maximize profit.
They cannot change the price of their apples.
They must sell apples at a fixed price set by the government.
57
Indirect taxes are ones that:
Go to the state government and then the federal government
Go straight to the federal government
Go to businesses/shops and then the federal government
Go to tax collectors and then the federal government
58
This New Deal program was made to help people prepare for retirment
Social Security
Federal minimum wage
FDIC
SEC
59
President' Roosevelt's ______________ helped people recover from the Great Depression
TARP program
New Deal programs
FDIC
Trickle down Economics
60
Debt can be owed by
Businesses
Governments
All of the above
Everyday people
61
A dependent is:
Someone who you support
Someone you live with but do not support
Someone you work for
Someone who supports you
62
What can high unemployment lead to in an economy?
Lower sales for businesses
More job openings
Increased spending by consumers
Higher business profits
63
The US is in a severe amount of debt
True
False
64
Stocks are ways people can have ownership of a company
True
False
65
A common source of personal debt can be
Credit cards
Stock investing
Student loans
66
Which country is an example of a command economy?
Canada
Soviet Union (Communist Russia)
Sweden
North Korea
67
A service/good's utility defines how useful it is
True
False
68
Trump wants to increase taxes on Americans
True
False
69
What is a significant commitment involved in buying a home?
No legal contracts
Monthly rental payments
Long-term mortgage obligation
Short-term lease agreements
70
What is a common reason for individuals to borrow money?
To invest in stocks
To cover immediate needs
To buy luxury items
To avoid working
71
The labor force is anyone who
Is able to get a job
Is able to work but is not seeking a job
Is unemployed but has worked in the past
Is 16 or older and is actively seeking work
72
Which of the following best describes a market economy?
Production decisions are made by a central authority.
Businesses operate under strict government regulations.
Prices are set supply and demand.
The government controls all production and distribution.
73
In Capitalism the government owns the factors of production
True
False
74
What does it mean to diversify your stock investments?
To invest in a variety of stocks across different sectors
To only buy shares from one company
To hold cash instead of stocks
To invest only in technology stocks
75
Costs that you do not pay to the college but still have to consider are
Direct costs
Tuition
Indirect costs
Room and board
76
What can structural unemployment be caused by?
Technological changes
Temporary job transitions
Seasonal job availability
Economic recessions
77
Everyone without a job is considered unemployed
True
False
78
When deciding on a change you must consider the____________ of the situation
Trade off
Scarcity
Opportunity cost
Wants/Needs
79
Division of labor breaks down a single task into multiple parts
False
True
80
Which of the following is an example of a capital good?
A haircut received at a salon.
A smartphone purchased for personal use.
A factory machine used to produce goods.
A loaf of bread bought at a store.
81
How do consumer goods differ from capital goods?
Consumer goods are always intangible.
Consumer goods are only found in stores.
Consumer goods are used by businesses to produce other goods.
Consumer goods are purchased by people for personal use.
82
Which factor of production encompasses all natural resources used in production?
Entrepreneurship
Labor
Land
Capital
83
A budget _______ can cause debt to increase
Breaking even
Deficit
Surplus
84
What event marked the beginning of the Great Depression?
The end of World War I
The stock market crash on Black Tuesday
The Dust Bowl
The signing of the New Deal
85
What is the primary purpose of government debt?
To finance public projects
To increase personal wealth
To fund personal projects
To pay off corporate loans
86
A sales tax is one that is added to ____________________.
Investment returns
Income
Property value
Goods and services
87
What is the purpose of a budget?
To save money in a bank
To invest in stocks
To gamble on sports
To plan and control spending
88
How does a proportional tax system differ from a regressive or progressive system?
It has a flat rate
It decreases with income
It is optional
It increases with income
89
Claiming a dependent on tax forms can ________________ your taxable income.
Increase
Have no effect on
Decrease
Double
90
Some unemployment is ok
True
False
91
Which of the following costs is typically NOT included in the tuition and fees of a college?
Personal expenses
Technology fees
Activity fees
Lab fees
92
A deductible is
Amount you pay to someone if you don't have insurance
Amount you pay to cover areas where you lack coverage
Amount you pay out-of-pocket before insurance
Amount you pay each renewal season to the insurance company
93
Which of the following statements correctly describes durable goods?
They aren't used by many people
They are consumed quickly.
They have longer lifespans
They are always more expensive than durable goods.
94
In stocks there is high return potential but also high risk potential
True
False
95
Value-added taxes are placed on:
How much money your property is worth each year
Products that you buy in a store
Income from a job
Payment for a service such as car repair
96
Normal IRAs and Roth IRAs help people prepare for
Graduating college
Big purchases like cars and a home
Main working years
Retirement
97
In a progressive tax system, taxes are based on:
Rates increasing as your income increases
A flat rate that everyone pays
Voluntary contributions based on personal preference
Rates decreasing as your income increases
98
What type of risk arises from a specific company or industry affecting its stock?
Un-Diversifiable risk
Diversifiable risk
Liquidity risk
Market risk
99
Which of the following statements correctly describes non-durable goods?
They aren't used by many people
They are always more expensive than durable goods.
They are consumed quickly.
They can have longer lifespans
100
When companies assign people specific tasks they become
laborists
entrepreneurs
capitalists
specialists
101
An account where you keep money for emergencies and it grows slowly over time
401k
Savings
Checking
Roth
102
Higher education levels translates to higher wages
False
True
103
What is one benefit of renting a home compared to buying?
Tax deductions
Lower maintenance responsibilities
Property appreciation
Building equity
104
In which scenario would uninsured motorist coverage be beneficial?
When your vehicle is stolen.
When you are involved in an accident with a driver who has no insurance.
When you need to repair your vehicle after a collision.
When you are involved in an accident with a driver who has insurance.

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