Economics & Personal Finance Final Exam

Which of the following best describes macroeconomic?

a. The study of individual spending patterns within an economy b

b. The study of family spending patterns within an economy

c. The study of economics as a whole

d. The study of business production within an economy

c. The study of economics as a whole

A set of actions to control a nation’s overall money supply and achieve economic growth

a. Fiscal policy

b. Monetary policy

b. Monetary policy

The use of government spending and tax policies to influence economic conditions

a. Monetary policy

b. Fiscal policy

b. Fiscal policy

The system of exports and imports that connects the global economy

a. Intellectual property

b. Eminent domain

c. Gross domestic product

d. Trade

d. Trade

Match the following

a. congress approves an increase in the federal budget

b. The Federal reserve requires banks to hold more money in their reserves

c. Banks lower the interest rates they give on loans

d. Taxes to the federal government are increased

a. Expansionary Fiscal Policy

b. Contractionary Monetary Policy

c. Expansionary Monetary

d. Contractionary Fiscal Policy

The potential benefits that a business, an investor, or an individual consumer misses out on when choosing one alternative over another best describes…

Opportunity Cost

Two goods for which an increase in the price of one leads to an increase in the demand for the other

Substitute

The economic idea that all resources are limited

Scarcity

The point where the demand curve and the supply curve intersect is the point of …

Equilibrium

The situations that results when the quantity supplied of a product is above the market equilibrium price

Surplus

What is the consumer price index

An index that tracks the percentage change of typical items for consumers

Which of the following do taxes pay for

a. Roads

b. Schools

c. social security

All of the above

Which form tells you how much money you earned at your job during the fiscal year

W-2

Which of the following statements is true about a budget

Personal budget differ based on the individual and their current financial situation

What is the difference between active and passive income

active requires work passive doesn’t

Which of the following is a loan for your home

Mortgage

What is the difference between active lease and a mortgage

mortgage is to a bank for ownership and a lease is payment made towards a landlord

Which of the following is bad debt

credit card debt

What is the difference between fixed and adjustable rate mortgage

Fixed rate doesn’t change

With a roth ira you can…

withdraw money after the age of 59 ½ and you have met the 5 year holding rule without penalty.

What is a mutual fund

can consist of stocks and bonds

A non profit organization is an example of

a Philanthropic organization

The Better Business bureau

informs consumers if complaints have been filed against the business

What is an example of an Non governmental consumer organization

Consumer Reports Magazine

The Gen z age group makes purchasing decisions

Based on what they see on social media sites

The Global Economy has

increased over the past 30 years

What governmental organization would aid a consumer in financial fraud

FTC

Match the following

a. congress approves an increase in the federal budget

b. The Federal reserve requires banks to hold more money in their reserves

c. Banks lower the interest rates they give on loans

d. Taxes to the federal government are increased

a. Expansionary Fiscal Policy

b. Contractionary Monetary Policy

c. Expansionary Monetary

d. Contractionary Fiscal Policy