Personal Finance Chapter 1 - The Fundamentals of Economics

Question 1

Which is not a type of economic system?

Accepted Answer

pure

Question 2

The factors of production include...

Accepted Answer

land, labor, capital, entrepreneurship

Question 3

the minimum price set by the government that can be charged for goods

Accepted Answer

price floor

Question 4

Which of the following is NOT a depository institution

Accepted Answer

investment bank

Question 5

Incentivies can be either positive or negative.

Accepted Answer

True

Question 6

an economy controlled by a central authority

Accepted Answer

command economy

Question 7

When demand for a product is affected by price, it is said to have

Accepted Answer

elastic demand

Question 8

Surplus occurs when producers lower their prices.

Accepted Answer

False

Question 9

the resources needed to produce goods and services

Accepted Answer

factors of production

Question 10

something that encourages specific behavior

Accepted Answer

incentive

Question 11

Opportunity cost is the cost of obtaining one more of an item.

Accepted Answer

False

Question 12

the price at which there are no overages or shortages of goods

Accepted Answer

equilibrium point

Question 13

what you give up to get something else

Accepted Answer

opportunity cost

Question 14

An individual who starts a new business is an example of labor as a factor of production.

Accepted Answer

False

Question 15

A stock broker creates mutual fund portfolios.

Accepted Answer

False

Question 16

The regulatory agency that oversees non-depository institutions is the

Accepted Answer

Securities and Exchange Commission

Question 17

Government policies can affect financial markets.

Accepted Answer

True

Question 18

intermediary between savers and borrowers

Accepted Answer

non-depository institutions

Question 19

Everything we make requires the four factors of production.

Accepted Answer

True

Question 20

principle that states ppl must decide which g&s 2use due2 limited resources & unlimited wants..

Accepted Answer

scarcity

Question 21

China is an example of a nation with a command economy.

Accepted Answer

True

Question 22

The government offers incentives to citizens to help increase consumer spending.

Accepted Answer

True

Question 23

Tax benefits are incentives sometimes offered by

Accepted Answer

the governement

Question 24

The SEC oversees depository institutions.

Accepted Answer

False

Question 25

the degree to which demand is affected by price

Accepted Answer

demand elasticity

Question 26

an economy controlled by the marketplace

Accepted Answer

market economy

Question 27

Businesses can offer incentives to

Accepted Answer

workers and consumers

Question 28

In a market econony, prices and wages are determined by

Accepted Answer

supply and demand

Question 29

An example of an incentive a business might offer to sonsumers is a

Accepted Answer

"children eat free" promotion

Question 30

the means for purchasing and selling stocks, bonds, and commodities

Accepted Answer

financial market

Personal Finance Chapter 1 - The Fundamentals of Economics

Questions 30

Personal Finance Chapter 1 - The Fundamentals of Economics

Questions 30