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) General Demand Probability
C) Gross Domestic Product
D) Government Development Program
  • 2. Which of the following is an example of fixed expenses?
A) Rent
B) Movie tickets
C) Grocery shopping
D) Clothing purchases
  • 3. What is the primary purpose of a budget?
A) To plan and track income and expenses
B) To encourage overspending
C) To restrict financial freedom
D) To increase spontaneous spending
  • 4. What does ROI stand for in investment terms?
A) Return on Investment
B) Rate of Inflation
C) Revenue on Interest
D) Risk of Investment
  • 5. What is the purpose of insurance?
A) To protect against financial losses
B) To encourage risky behavior
C) To reduce emergency savings
D) To increase monthly expenses
  • 6. What is the role of supply and demand in pricing?
A) To regulate government spending
B) To decrease market competition
C) To determine the equilibrium price
D) To ensure fixed prices
  • 7. What does APR stand for in financial terms?
A) Average Payment Return
B) Annual Percentage Rate
C) Actual Purchase Reward
D) Asset Protection Ratio
  • 8. What is the definition of disposable income?
A) Income available after taxes
B) Gross salary before deductions
C) Money spent on essential items
D) Total amount earned
  • 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 credit card limit
B) A government-issued subsidy
C) A form of personal insurance
D) A time deposit with a fixed term and interest rate
  • 11. What is the role of a financial planner?
A) To discourage saving
B) To encourage living paycheck to paycheck
C) To help individuals manage their finances and investments
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) An increase in savings interest rates
D) A decrease in taxes
  • 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 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) Maximum contribution limits
B) Age eligibility requirements
C) Tax treatment of contributions and withdrawals
D) Investment options available
  • 16. What is the purpose of an emergency fund?
A) To cover unexpected expenses and financial emergencies
B) To fund luxury purchases
C) To invest for retirement
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) Interest rate
C) Loan term length
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 encourage overspending
C) To increase interest rates
D) To promote risky investments
  • 19. What is the concept of insurance premium?
A) The cash value of the policy
B) The deducted claim amount
C) The amount paid for an insurance policy
D) The total coverage limit
  • 20. What is the purpose of a mortgage in real estate?
A) To avoid property taxes
B) To provide a rental agreement
C) To borrow money to purchase a property
D) To sell stocks in the housing market
  • 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 waive inspection requirements
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) Overhead
B) Revenue
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) Resume
B) Job Application
C) Cover Letter
D) Job Description
  • 24. What economic term refers to the general increase in prices over time?
A) Price Ceiling
B) Deflation
C) Recession
D) Inflation
  • 25. Which of the following is an example of a capital resource?
A) Football
B) Television
C) Wheat
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) Supply and Demand
B) Dynamic Pricing
C) Market Penetration
D) Predatory Pricing
  • 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) 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) Recession
B) Hyperinflation
C) Depression
D) Stagflation
  • 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) Monopoly
C) Perfect Competition
D) Oligopoly
  • 33. Which of the following is an example of a durable good?
A) Toothpaste
B) Refrigerator
C) Gasoline
D) Fruit
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Monopoly
B) Perfect Competition
C) Monopolistic Competition
D) Oligopoly
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