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) Gross Domestic Product
D) Government Development Program
  • 2. Which of the following is an example of fixed expenses?
A) Rent
B) Grocery shopping
C) Clothing purchases
D) Movie tickets
  • 3. What is the primary purpose of a budget?
A) To encourage overspending
B) To restrict financial freedom
C) To plan and track income and expenses
D) To increase spontaneous spending
  • 4. What does ROI stand for in investment terms?
A) Return on Investment
B) Revenue on Interest
C) Risk of Investment
D) Rate of Inflation
  • 5. What is the purpose of insurance?
A) To encourage risky behavior
B) To reduce emergency savings
C) To protect against financial losses
D) To increase monthly expenses
  • 6. What is the role of supply and demand in pricing?
A) To regulate government spending
B) To ensure fixed prices
C) To determine the equilibrium price
D) To decrease market competition
  • 7. What does APR stand for in financial terms?
A) Asset Protection Ratio
B) Annual Percentage Rate
C) Actual Purchase Reward
D) Average Payment Return
  • 8. What is the definition of disposable income?
A) Gross salary before deductions
B) Money spent on essential items
C) Income available after taxes
D) Total amount earned
  • 9. Which of the following is a form of progressive tax?
A) Income tax
B) Sales tax
C) Property tax
D) Excise tax
  • 10. What is a certificate of deposit (CD)?
A) A government-issued subsidy
B) A time deposit with a fixed term and interest rate
C) A credit card limit
D) A form of personal insurance
  • 11. What is the role of a financial planner?
A) To encourage living paycheck to paycheck
B) To help individuals manage their finances and investments
C) To discourage saving
D) To increase spending habits
  • 12. What is the concept of inflation?
A) A rise in unemployment rates
B) A general increase in prices and fall in the purchasing value of money
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) Simple interest
B) Compound interest
C) Fixed interest
D) Negative interest
  • 14. What is the purpose of a stock market?
A) To control government spending
B) To eliminate competition among businesses
C) To allow companies to raise capital by selling shares of ownership
D) To provide interest-free loans to individuals
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Age eligibility requirements
B) Tax treatment of contributions and withdrawals
C) Maximum contribution limits
D) Investment options available
  • 16. What is the purpose of an emergency fund?
A) To invest for retirement
B) To cover unexpected expenses and financial emergencies
C) To donate to charity
D) To fund luxury purchases
  • 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 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 total coverage limit
B) The deducted claim amount
C) The cash value of the policy
D) The amount paid for an insurance policy
  • 20. What is the purpose of a mortgage in real estate?
A) To provide a rental agreement
B) To sell stocks in the housing market
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 waive inspection requirements
C) To negotiate rent prices
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) Revenue
B) Loss
C) Overhead
D) Profit
  • 23. What is the term used to describe a document that lists the salary, benefits, and other details of a job position?
A) Job Application
B) Job Description
C) Resume
D) Cover Letter
  • 24. What economic term refers to the general increase in prices over time?
A) Deflation
B) Price Ceiling
C) Inflation
D) Recession
  • 25. Which of the following is an example of a capital resource?
A) Wheat
B) Football
C) Television
D) Factory
  • 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) Oil
B) Wind Power
C) Solar Energy
D) Hydroelectricity
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Fascism
B) Socialism
C) Capitalism
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) Depression
C) Hyperinflation
D) Stagflation
  • 30. When a government spends more money than it collects in revenue, what is the resulting situation called?
A) Trade Surplus
B) National Debt
C) Revenue Growth
D) Budget Deficit
  • 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) Monopoly
C) Oligopoly
D) Perfect Competition
  • 33. Which of the following is an example of a durable good?
A) Toothpaste
B) Fruit
C) Gasoline
D) Refrigerator
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Perfect Competition
B) Monopolistic Competition
C) Monopoly
D) Oligopoly
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