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) Government Development Program
C) Gross Domestic Product
D) General Demand Probability
  • 2. Which of the following is an example of fixed expenses?
A) Movie tickets
B) Grocery shopping
C) Clothing purchases
D) Rent
  • 3. What is the primary purpose of a budget?
A) To encourage overspending
B) To plan and track income and expenses
C) To restrict financial freedom
D) To increase spontaneous spending
  • 4. What does ROI stand for in investment terms?
A) Rate of Inflation
B) Return on Investment
C) Risk of Investment
D) Revenue on Interest
  • 5. What is the purpose of insurance?
A) To protect against financial losses
B) To increase monthly expenses
C) To reduce emergency savings
D) To encourage risky behavior
  • 6. What is the role of supply and demand in pricing?
A) To ensure fixed prices
B) To decrease market competition
C) To determine the equilibrium price
D) To regulate government spending
  • 7. What does APR stand for in financial terms?
A) Asset Protection Ratio
B) Actual Purchase Reward
C) Annual Percentage Rate
D) Average Payment Return
  • 8. What is the definition of disposable income?
A) Money spent on essential items
B) Gross salary before deductions
C) Total amount earned
D) Income available after taxes
  • 9. Which of the following is a form of progressive tax?
A) Property tax
B) Income tax
C) Excise 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 form of personal insurance
C) A government-issued subsidy
D) A credit card limit
  • 11. What is the role of a financial planner?
A) To encourage living paycheck to paycheck
B) To discourage saving
C) To increase spending habits
D) To help individuals manage their finances and investments
  • 12. What is the concept of inflation?
A) A general increase in prices and fall in the purchasing value of money
B) A rise in unemployment rates
C) A decrease in taxes
D) An increase in savings interest rates
  • 13. Which type of interest is charged on a credit card balance?
A) Fixed interest
B) Simple interest
C) Negative interest
D) Compound interest
  • 14. What is the purpose of a stock market?
A) To allow companies to raise capital by selling shares of ownership
B) To control government spending
C) To provide interest-free loans to individuals
D) To eliminate competition among businesses
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Investment options available
B) Tax treatment of contributions and withdrawals
C) Age eligibility requirements
D) Maximum contribution limits
  • 16. What is the purpose of an emergency fund?
A) To donate to charity
B) To invest for retirement
C) To fund luxury purchases
D) To cover unexpected expenses and financial emergencies
  • 17. What does the term 'collateral' refer to in a loan agreement?
A) Interest rate
B) Monthly payment amount
C) Loan term length
D) A valuable asset pledged as security for the loan
  • 18. What is the purpose of a credit counseling service?
A) To help individuals manage debt and improve financial literacy
B) To increase interest rates
C) To encourage overspending
D) To promote risky investments
  • 19. What is the concept of insurance premium?
A) The total coverage limit
B) The amount paid for an insurance policy
C) The cash value of the policy
D) The deducted claim amount
  • 20. What is the purpose of a mortgage in real estate?
A) To borrow money to purchase a property
B) To provide a rental agreement
C) To sell stocks in the housing market
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 hold funds and documents until the closing process is completed
D) To increase property appraisal value
  • 22. What is the name for the amount of money a business earns over and above its expenses?
A) Loss
B) Revenue
C) Profit
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) Cover Letter
B) Job Application
C) Resume
D) Job Description
  • 24. What economic term refers to the general increase in prices over time?
A) Deflation
B) Inflation
C) Recession
D) Price Ceiling
  • 25. Which of the following is an example of a capital resource?
A) Football
B) Television
C) Factory
D) Wheat
  • 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) Dynamic Pricing
B) Predatory Pricing
C) Supply and Demand
D) Market Penetration
  • 27. Which of the following would be classified as a non-renewable resource?
A) Wind Power
B) Oil
C) Hydroelectricity
D) Solar Energy
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Capitalism
B) Fascism
C) Communism
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) Recession
C) Stagflation
D) Depression
  • 30. When a government spends more money than it collects in revenue, what is the resulting situation called?
A) Trade Surplus
B) Revenue Growth
C) Budget Deficit
D) National Debt
  • 31. Which of the following is a type of investment that represents ownership in a company?
A) Bonds
B) Stock
C) Real Estate
D) Savings Account
  • 32. What term describes a market situation where there is only one seller of a product with no close substitutes?
A) Monopolistic Competition
B) Oligopoly
C) Perfect Competition
D) Monopoly
  • 33. Which of the following is an example of a durable good?
A) Gasoline
B) Fruit
C) Toothpaste
D) Refrigerator
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Monopolistic Competition
B) Monopoly
C) Oligopoly
D) Perfect Competition
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