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) General Demand Probability
B) Global Demand Pattern
C) Government Development Program
D) Gross Domestic Product
  • 2. Which of the following is an example of fixed expenses?
A) Rent
B) Clothing purchases
C) Movie tickets
D) Grocery shopping
  • 3. What is the primary purpose of a budget?
A) To encourage overspending
B) To increase spontaneous spending
C) To plan and track income and expenses
D) To restrict financial freedom
  • 4. What does ROI stand for in investment terms?
A) Return on Investment
B) Risk of Investment
C) Rate of Inflation
D) Revenue on Interest
  • 5. What is the purpose of insurance?
A) To increase monthly expenses
B) To encourage risky behavior
C) To protect against financial losses
D) To reduce emergency savings
  • 6. What is the role of supply and demand in pricing?
A) To ensure fixed prices
B) To determine the equilibrium price
C) To regulate government spending
D) To decrease market competition
  • 7. What does APR stand for in financial terms?
A) Asset Protection Ratio
B) Average Payment Return
C) Annual Percentage Rate
D) Actual Purchase Reward
  • 8. What is the definition of disposable income?
A) Income available after taxes
B) Money spent on essential items
C) Gross salary before deductions
D) Total amount earned
  • 9. Which of the following is a form of progressive tax?
A) Income tax
B) Property tax
C) Excise tax
D) Sales tax
  • 10. What is a certificate of deposit (CD)?
A) A credit card limit
B) A government-issued subsidy
C) A time deposit with a fixed term and interest rate
D) A form of personal insurance
  • 11. What is the role of a financial planner?
A) To discourage saving
B) To increase spending habits
C) To help individuals manage their finances and investments
D) To encourage living paycheck to paycheck
  • 12. What is the concept of inflation?
A) An increase in savings interest rates
B) A decrease in taxes
C) A general increase in prices and fall in the purchasing value of money
D) A rise in unemployment rates
  • 13. Which type of interest is charged on a credit card balance?
A) Compound interest
B) Simple interest
C) Negative interest
D) Fixed interest
  • 14. What is the purpose of a stock market?
A) To eliminate competition among businesses
B) To provide interest-free loans to individuals
C) To allow companies to raise capital by selling shares of ownership
D) To control government spending
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Investment options available
B) Maximum contribution limits
C) Age eligibility requirements
D) Tax treatment of contributions and withdrawals
  • 16. What is the purpose of an emergency fund?
A) To cover unexpected expenses and financial emergencies
B) To donate to charity
C) To invest for retirement
D) To fund luxury purchases
  • 17. What does the term 'collateral' refer to in a loan agreement?
A) Monthly payment amount
B) A valuable asset pledged as security for the loan
C) Loan term length
D) Interest rate
  • 18. What is the purpose of a credit counseling service?
A) To increase interest rates
B) To promote risky investments
C) To encourage overspending
D) To help individuals manage debt and improve financial literacy
  • 19. What is the concept of insurance premium?
A) The amount paid for an insurance policy
B) The deducted claim amount
C) The total coverage limit
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 provide a rental agreement
C) To avoid property taxes
D) To borrow money to purchase a property
  • 21. What is the role of escrow in a real estate transaction?
A) To hold funds and documents until the closing process is completed
B) To negotiate rent prices
C) To increase property appraisal value
D) To waive inspection requirements
  • 22. What is the name for the amount of money a business earns over and above its expenses?
A) Revenue
B) Overhead
C) Profit
D) Loss
  • 23. What is the term used to describe a document that lists the salary, benefits, and other details of a job position?
A) Job Description
B) Resume
C) Job Application
D) Cover Letter
  • 24. What economic term refers to the general increase in prices over time?
A) Deflation
B) Recession
C) Inflation
D) Price Ceiling
  • 25. Which of the following is an example of a capital resource?
A) Television
B) Factory
C) Wheat
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) Dynamic Pricing
B) Market Penetration
C) Supply and Demand
D) Predatory Pricing
  • 27. Which of the following would be classified as a non-renewable resource?
A) Hydroelectricity
B) Solar Energy
C) Wind Power
D) Oil
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Socialism
B) Capitalism
C) Fascism
D) Communism
  • 29. What is the term used to describe a state where the economy is not performing optimally, with high inflation and high unemployment?
A) Recession
B) Stagflation
C) Hyperinflation
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) Real Estate
B) Savings Account
C) Stock
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) Monopolistic Competition
C) Perfect Competition
D) Monopoly
  • 33. Which of the following is an example of a durable good?
A) Gasoline
B) Toothpaste
C) Refrigerator
D) Fruit
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Oligopoly
B) Monopolistic Competition
C) Monopoly
D) Perfect Competition
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