Random 1
If the supply of computer engineers increases at the same time that the demand for these workers decreases, what would be the MOST LIKELY effect on wages for these workers?
Wages would decline as the competition for jobs increases. Workers and their wages follow the same laws of supply and demand as other products in the market.
Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar would ____________
When inflation occurs, the buying power of the dollar would decrease. Inflation results in less "bang for your buck" because it erodes the purchasing power of a unit of currency.
Jean and her friend run a lemonade stand over the summer. They make $1,000. Jean says that they should put away 20% of their income to buy supplies for next year’s lemonade stand.
The girls should save $200 for next year’s supplies. This amount is 20% of $1,000.
What is another word for income earned by selling one's labor to a business?
In exchange for your labor, a business pays you a wage. You, as a consumer, then spend the wage you earn at other businesses and the cycle repeats itself.
This is when each worker performs a specific task in production.
Mr. Simpson deposits his money in a savings account at the Springfield Bank. Would he earn more money with simple interest or with compound interest?
Mr. Simpson would earn more money with compound interest because the amount on which interest is paid increases over time. The interest earned is added to the balance earning interest.
A tax on retail products based on a set percentage retail cost is called _______________
A tax on retail products based on a set percentage of retail sale is a sales tax. The states set the amount of this tax for their state-- and only 5 states don't have this type of tax! (Alaska, Delaware, Montana, New Hampshire, and Oregon)
In the United States, which action is an example of an economic freedom?
paying taxes
attending school
registering to vote
starting a business
starting a business
This is equipment and factories used in the production of goods and services.
Ability to obtain goods and services before payment, or money lent or made available, both with specific guidelines for repayment.
Which of these is NOT an example of a fixed expense in a budget?
car payment
mortgage payment
car insurance payment
expenses for a birthday party
expenses for a birthday party
Ken wants to purchase a new smartphone and knows it will cost him about $300. How much will he have to save a month if he wants to purchase the phone in five months?
Ken will need to save at least $60/month in order to purchase his new phone. To figure this out, take the amount needed and divide by five.
A new video game is coming out in a month and you would like to have enough money to purchase it. Which of these is your BEST financial choice in buying the game?
put money into a savings account at a bank
ask about how to invest in the stock market
spend more money now and buy the video game with a credit card
ask the store if they will loan you the money for the video game
put money into a savings account at a bank
the paper money and coins that make up the money supply of a nation
The institution or individual that loans money to an individual or business at a set interest rate over a set period of time.
Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie?
When you choose to do one thing instead of doing another, you've made an opportunity cost. You gave up a number of things to be taking this practice test right now, an the #1 thing you decided NOT to do is referred to as the "opportunity cost".
Which of these factors should consumers research FIRST when they receive a credit card offer with a low introductory rate?
Consumers should research the APR after the introductory period expires of any credit card offer with a low introductory rate.
What is the relationship between credit and debt?
Credit must be extended before debt can be assumed. Just because credit is extended does not mean debt is assumed; the borrower must use the credit before it becomes a debt. Likewise, assuming debt does not automatically mean more credit will be extended.
a person who takes the risk of a new business enterprise
Entrepreneur
The percentage of a financial loan which is paid as a fee over a period of time.
Which would be most likely to be a “consumer good”?
lumber
iron ore
chainsaw
a bale of cotton
chainsaw
Kim is deciding between two loan offers. To make the BEST decision, Kim should ______________
Kim should compare each loan's annual percentage rate. Individuals have a beacon score and there is no debt-to-credit ration or average prime rate.
Why might personal saving decisions be important?
Personal saving decisions might be important because saving money can help you prepare for unexpected expenses. While having a savings account is wise, it does not necessarily lead to a better-paying job. Unneeded items are just that-- unneeded. Preparing for unexpected expenses is an important, and "smart money" economic decision.
The total value of all the goods and services produced within a country in a given year
Property or other security used to guarantee the repayment of a loan
Collateral