Consumer economics
  • 1. Consumer economics is the study of how individuals and households make decisions about spending their money. It involves understanding how people allocate their resources to meet their needs and wants, as well as the factors that influence their purchasing behavior. Consumer economics explores topics such as budgeting, saving, investing, borrowing, and consumer rights. By studying consumer economics, individuals can make informed decisions about their finances and better navigate the complex world of consumer choices and markets.

    What does GDP stand for?
A) Global Demand Pattern
B) Gross Domestic Product
C) Government Development Program
D) General Demand Probability
  • 2. Which of the following is an example of fixed expenses?
A) Clothing purchases
B) Grocery shopping
C) Movie tickets
D) Rent
  • 3. What is the primary purpose of a budget?
A) To increase spontaneous spending
B) To plan and track income and expenses
C) To restrict financial freedom
D) To encourage overspending
  • 4. What does ROI stand for in investment terms?
A) Risk of Investment
B) Return on Investment
C) Revenue on Interest
D) Rate of Inflation
  • 5. What is the purpose of insurance?
A) To reduce emergency savings
B) To protect against financial losses
C) To encourage risky behavior
D) To increase monthly expenses
  • 6. What is the role of supply and demand in pricing?
A) To determine the equilibrium price
B) To ensure fixed prices
C) To regulate government spending
D) To decrease market competition
  • 7. What does APR stand for in financial terms?
A) Annual Percentage Rate
B) Asset Protection Ratio
C) Average Payment Return
D) Actual Purchase Reward
  • 8. What is the definition of disposable income?
A) Money spent on essential items
B) Income available after taxes
C) Total amount earned
D) Gross salary before deductions
  • 9. Which of the following is a form of progressive tax?
A) Income tax
B) Excise tax
C) Property tax
D) Sales tax
  • 10. What is a certificate of deposit (CD)?
A) A time deposit with a fixed term and interest rate
B) A credit card limit
C) A government-issued subsidy
D) A form of personal insurance
  • 11. What is the role of a financial planner?
A) To increase spending habits
B) To encourage living paycheck to paycheck
C) To help individuals manage their finances and investments
D) To discourage saving
  • 12. What is the concept of inflation?
A) A rise in unemployment rates
B) An increase in savings interest rates
C) A decrease in taxes
D) A general increase in prices and fall in the purchasing value of money
  • 13. Which type of interest is charged on a credit card balance?
A) Fixed interest
B) Compound interest
C) Negative interest
D) Simple interest
  • 14. What is the purpose of a stock market?
A) To allow companies to raise capital by selling shares of ownership
B) To eliminate competition among businesses
C) To control government spending
D) To provide interest-free loans to individuals
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Investment options available
B) Age eligibility requirements
C) Maximum contribution limits
D) Tax treatment of contributions and withdrawals
  • 16. What is the purpose of an emergency fund?
A) To fund luxury purchases
B) To invest for retirement
C) To cover unexpected expenses and financial emergencies
D) To donate to charity
  • 17. What does the term 'collateral' refer to in a loan agreement?
A) A valuable asset pledged as security for the loan
B) Loan term length
C) Interest rate
D) Monthly payment amount
  • 18. What is the purpose of a credit counseling service?
A) To help individuals manage debt and improve financial literacy
B) To promote risky investments
C) To increase interest rates
D) To encourage overspending
  • 19. What is the concept of insurance premium?
A) The amount paid for an insurance policy
B) The total coverage limit
C) The deducted claim amount
D) The cash value of the policy
  • 20. What is the purpose of a mortgage in real estate?
A) To sell stocks in the housing market
B) To borrow money to purchase a property
C) To provide a rental agreement
D) To avoid property taxes
  • 21. What is the role of escrow in a real estate transaction?
A) To waive inspection requirements
B) To negotiate rent prices
C) To increase property appraisal value
D) To hold funds and documents until the closing process is completed
  • 22. What is the name for the amount of money a business earns over and above its expenses?
A) Revenue
B) Profit
C) Loss
D) Overhead
  • 23. What is the term used to describe a document that lists the salary, benefits, and other details of a job position?
A) Resume
B) Cover Letter
C) Job Application
D) Job Description
  • 24. What economic term refers to the general increase in prices over time?
A) Recession
B) Deflation
C) Inflation
D) Price Ceiling
  • 25. Which of the following is an example of a capital resource?
A) Wheat
B) Factory
C) Television
D) Football
  • 26. What is the term used to describe the practice of selling a product below its production cost to drive competitors out of the market?
A) Market Penetration
B) Predatory Pricing
C) Dynamic Pricing
D) Supply and Demand
  • 27. Which of the following would be classified as a non-renewable resource?
A) Wind Power
B) Oil
C) Solar Energy
D) Hydroelectricity
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Fascism
B) Communism
C) Capitalism
D) Socialism
  • 29. What is the term used to describe a state where the economy is not performing optimally, with high inflation and high unemployment?
A) Hyperinflation
B) Stagflation
C) Recession
D) Depression
  • 30. When a government spends more money than it collects in revenue, what is the resulting situation called?
A) National Debt
B) Trade Surplus
C) Revenue Growth
D) Budget Deficit
  • 31. Which of the following is a type of investment that represents ownership in a company?
A) Savings Account
B) Stock
C) Real Estate
D) Bonds
  • 32. What term describes a market situation where there is only one seller of a product with no close substitutes?
A) Oligopoly
B) Monopoly
C) Perfect Competition
D) Monopolistic Competition
  • 33. Which of the following is an example of a durable good?
A) Gasoline
B) Toothpaste
C) Fruit
D) Refrigerator
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Perfect Competition
B) Monopoly
C) Monopolistic Competition
D) Oligopoly
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