Economic Basics
Which best defines goods?
A. Financial services like banking
B. Tangible items produced for sale (e.g., clothing, food)
C. Legal contracts between two parties
D. Government regulations
Tangible items produced for sale (e.g., clothing, food)
What does demand mean?
A. The number of sellers in a market
B. Government price controls
C. The cost to produce an item
D. The willingness and ability of buyers to purchase a good or service at various prices
D. The willingness and ability of buyers to purchase a good or service at various prices
What is a checking account?
A. A transaction account for daily spending and bill payments with checks/debit access
B. An account for long-term investments
C. A secured loan account
D. A retirement account
A. A transaction account for daily spending and bill payments with checks/debit access
What is the 50/30/20 rule?
A. A budgeting rule: 50% needs, 30% wants, 20% savings/debt repayment
B. A loan amortization schedule
C. A tax bracket distribution method
D. An investment diversification rule
A. A budgeting rule: 50% needs, 30% wants, 20% savings/debt repayment
What is a debit card?
A. A card that borrows money from a bank to pay now and bills later
B. A credit-building tool only
C. A prepaid gift only
D. A card that withdraws funds directly from your checking account at the time of purchase
D. A card that withdraws funds directly from your checking account at the time of purchase
Which best defines services?
A. Intangible work provided to others (e.g., haircuts, repairs)
B. Physical products sold in stores
C. Stocks and bonds
D. Tax forms
A Intangible work provided to others (e.g., haircuts, repairs)
What is the FED (Federal Reserve)?
A. The U.S. central bank that manages monetary policy and the money supply
B. A private retail bank chain
C. A type of savings account
D. A federal income tax form
A. The U.S. central bank that manages monetary policy and the money supply
What is a savings account?
A. An account for everyday purchases only
B. A line of credit
C. An account to hold money and earn interest, typically for short- to medium-term saving goals
D. A brokerage account for stocks
C. An account to hold money and earn interest, typically for short- to medium-term saving goals
What is a credit score?
A. The balance in your checking account
B. Your annual income
C. A numeric summary of your creditworthiness used by lenders to assess risk
D. Your tax refund amount
C. A numeric summary of your creditworthiness used by lenders to assess risk
What is identity theft?
A. A legitimate credit check by lenders
B. When someone steals another person’s personal information to commit fraud or impersonate them
C. A job background check
D. A secure online verification process
B. When someone steals another person’s personal information to commit fraud or impersonate them
What is a monopoly in business?
A. A market with many identical sellers
B. Government-run public services only
C. A single seller dominating a market with no close substitutes
D. A temporary promotional sale
C. A single seller dominating a market with no close substitutes
What is market equilibrium?
A. When supply exceeds demand
B. When demand exceeds supply
C. When quantity supplied equals quantity demanded at a given price
D. When prices are set by government
C. When quantity supplied equals quantity demanded at a given price
What is a credit card?
A. A card that withdraws money from your account immediately
B. A card that allows you to borrow money up to a limit and repay later, often with interest
C. A government ID
D. A savings product
B. A card that allows you to borrow money up to a limit and repay later, often with interest
Which is a way to improve your credit score?
A. Make on‑time payments consistently
B. Close all old credit accounts immediately
C. Default on a small loan intentionally
D. Apply for many new cards in a short time
A. Make on‑time payments consistently
What is phishing?
A. A cyber‑scam using fraudulent emails or messages
B. A method of tracking
C. A type of password manager
D. Government surveillance
A. A cyber‑scam using fraudulent emails or messages
. What is the FED (Federal Reserve)?
A. The U.S. central bank that manages monetary policy and the money supply
B. A private retail bank chain
C. A type of savings account
D. A federal income tax form
A. The U.S. central bank that manages monetary policy and the money supply
What is a surplus?
A. When quantity demanded is greater than quantity supplied
B. When taxes are higher than benefits
C. When banks have extra reserves
D. When quantity supplied exceeds quantity demanded
D. When quantity supplied exceeds quantity demanded
What is a mortgage?
A. A short-term personal loan without collateral
B. A type of insurance policy
C. A long-term loan secured by real estate used to purchase a home
D. A student loan subtype
C. A long-term loan secured by real estate used to purchase a home
What is a down payment?
A. An upfront lump sum paid toward the purchase price of an item (often a home) to reduce the loan amount
B. Monthly mortgage interest only
C. A government rebate
D. A late fee on a loan
A. An upfront lump sum paid toward the purchase price of an item (often a home) to reduce the loan amount
how to file taxes?
A. Only by phone
B. By planing a meeting with the IRS
C. Only in person at a bank
D. Paper filing, electronic filing, or using a tax preparer/service
D. Paper filing, electronic filing, or using a tax preparer/service
What is GDP (Gross Domestic Product)?
A. Total value of a company’s assets
B. Total market value of all final goods and services produced in a country in a period
C. Government deficit amount
D. Average household income
B. Total market value of all final goods and services produced in a country in a period
What is a shortage?
A. When quantity supplied exceeds quantity demanded
B. When the government reduces production
C. When quantity demanded exceeds quantity supplied
D. When producers lower quality
C. When quantity demanded exceeds quantity supplied
What is FAFSA?
A. A scholarship offered by private companies
B. A type of loan for cars
C. A credit-reporting agency
D. The Free Application for Federal Student Aid students use to apply
D. The Free Application for Federal Student Aid students use to apply
What is the primary purpose of a resume?
A. To record personal finances
B. To summarize skills, experience, and education
C. To serve as a legal contract
D. To track daily tasks
B. To summarize skills, experience, and education
What is a dark pattern?
A. A type of legal contract that protects consumers
B. A fashion trend
C. A security encryption method
D. A deceptive user-interface design that manipulates people into actions they might not voluntarily choose
D. A deceptive user-interface design that manipulates people into actions they might not voluntarily choose