What is the primary reason that scarcity exists in economics?

There are unlimited wants and limited resources

What is an example of frictional unemployment?

A recent graduate looking for their first job

What does it mean to diversify your stock investments?

To invest in a variety of stocks across different sectors

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

Services are intangible activities provided to others.

Which of the following best describes goods in economics?

Items that can be touched, seen, and measured.

If a farmer in a market economy sees a high demand for apples, what can they do?

They can raise the price of apples to maximize profit.

An income tax is a tax on someone’s:

Value of their earnings from work

What is the definition of debt in economics?

Money that is borrowed and must be paid back

Amount you pay out-of-pocket before insurance

The labor force is anyone who

Is 16 or older and is actively seeking work

Which country is an example of a command economy?

Soviet Union (Communist Russia), North Korea

Taxes are how the government __________

Collects money for operations & spending

Which of the following best describes a market economy?

Prices are set supply and demand.

Loan you take to pay for a house

How do consumer goods differ from capital goods?

Consumer goods are purchased by people for personal use.

Which of the following best describes seasonal unemployment?

Unemployment that occurs at specific times of the year

Value-added taxes are placed on:

Payment for a service such as car repair

Amount you pay to keep insurance coverage

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

Tax-free withdrawals in retirement

Which of the following is an example of cyclical unemployment?

A factory worker losing their job during a recession.

What event marked the beginning of the Great Depression?

The stock market crash on Black Tuesday

In what way do entrepreneurs contribute to economic growth?

By introducing new products and services.

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

A smartphone purchased for personal use.

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Econ Exam Quiz All units

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Questions 104

Answers

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

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