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) Movie tickets
B) Clothing purchases
C) Grocery shopping
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) Risk of Investment
B) Rate of Inflation
C) Return on Investment
D) Revenue on Interest
  • 5. What is the purpose of insurance?
A) To encourage risky behavior
B) To increase monthly expenses
C) To reduce emergency savings
D) To protect against financial losses
  • 6. What is the role of supply and demand in pricing?
A) To regulate government spending
B) To determine the equilibrium price
C) To decrease market competition
D) To ensure fixed prices
  • 7. What does APR stand for in financial terms?
A) Actual Purchase Reward
B) Annual Percentage Rate
C) Average Payment Return
D) Asset Protection Ratio
  • 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) Sales tax
B) Property tax
C) Income tax
D) Excise tax
  • 10. What is a certificate of deposit (CD)?
A) A government-issued subsidy
B) A form of personal insurance
C) A time deposit with a fixed term and interest rate
D) A credit card limit
  • 11. What is the role of a financial planner?
A) To increase spending habits
B) To encourage living paycheck to paycheck
C) To discourage saving
D) To help individuals manage their finances and investments
  • 12. What is the concept of inflation?
A) A rise in unemployment rates
B) A decrease in taxes
C) A general increase in prices and fall in the purchasing value of money
D) An increase in savings interest rates
  • 13. Which type of interest is charged on a credit card balance?
A) Compound interest
B) Simple interest
C) Fixed interest
D) Negative interest
  • 14. What is the purpose of a stock market?
A) To provide interest-free loans to individuals
B) To control government spending
C) To allow companies to raise capital by selling shares of ownership
D) To eliminate competition among businesses
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Tax treatment of contributions and withdrawals
B) Age eligibility requirements
C) Maximum contribution limits
D) Investment options available
  • 16. What is the purpose of an emergency fund?
A) To invest for retirement
B) To fund luxury purchases
C) To donate to charity
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) A valuable asset pledged as security for the loan
D) Loan term length
  • 18. What is the purpose of a credit counseling service?
A) To increase interest rates
B) To promote risky investments
C) To help individuals manage debt and improve financial literacy
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 cash value of the policy
D) The deducted claim amount
  • 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 increase property appraisal value
C) To negotiate rent prices
D) To waive inspection requirements
  • 22. What is the name for the amount of money a business earns over and above its expenses?
A) Profit
B) Overhead
C) Loss
D) Revenue
  • 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) Resume
C) Job Application
D) Job Description
  • 24. What economic term refers to the general increase in prices over time?
A) Recession
B) Price Ceiling
C) Deflation
D) Inflation
  • 25. Which of the following is an example of a capital resource?
A) Factory
B) Wheat
C) Football
D) Television
  • 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) Supply and Demand
C) Dynamic Pricing
D) Predatory Pricing
  • 27. Which of the following would be classified as a non-renewable resource?
A) Hydroelectricity
B) Oil
C) Solar Energy
D) Wind Power
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Capitalism
B) Socialism
C) Communism
D) Fascism
  • 29. What is the term used to describe a state where the economy is not performing optimally, with high inflation and high unemployment?
A) Depression
B) Stagflation
C) Hyperinflation
D) Recession
  • 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) Stock
B) Savings Account
C) Bonds
D) Real Estate
  • 32. What term describes a market situation where there is only one seller of a product with no close substitutes?
A) Monopoly
B) Oligopoly
C) Monopolistic Competition
D) Perfect Competition
  • 33. Which of the following is an example of a durable good?
A) Toothpaste
B) Fruit
C) Refrigerator
D) Gasoline
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Perfect Competition
B) Monopolistic Competition
C) Oligopoly
D) Monopoly
Created with That Quiz — a math test site for students of all grade levels.