ThatQuiz Test Library Take this test now
Consumer economics
Contributed by: Baker
  • 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) Rent
C) Clothing purchases
D) Grocery shopping
  • 3. What is the primary purpose of a budget?
A) To plan and track income and expenses
B) To encourage overspending
C) To increase spontaneous spending
D) To restrict financial freedom
  • 4. What does ROI stand for in investment terms?
A) Revenue on Interest
B) Risk of Investment
C) Return on Investment
D) Rate of Inflation
  • 5. What is the purpose of insurance?
A) To reduce emergency savings
B) To encourage risky behavior
C) To protect against financial losses
D) To increase monthly expenses
  • 6. What is the role of supply and demand in pricing?
A) To decrease market competition
B) To ensure fixed prices
C) To determine the equilibrium price
D) To regulate government spending
  • 7. What does APR stand for in financial terms?
A) Actual Purchase Reward
B) Asset Protection Ratio
C) Annual Percentage Rate
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) Sales tax
B) Property tax
C) Income tax
D) Excise tax
  • 10. What is a certificate of deposit (CD)?
A) A time deposit with a fixed term and interest rate
B) A government-issued subsidy
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 discourage saving
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 decrease in taxes
C) An increase in savings interest rates
D) A general increase in prices and fall in the purchasing value of money
  • 13. Which type of interest is charged on a credit card balance?
A) Fixed interest
B) Negative interest
C) Compound interest
D) Simple interest
  • 14. What is the purpose of a stock market?
A) To allow companies to raise capital by selling shares of ownership
B) To provide interest-free loans to individuals
C) To control government spending
D) To eliminate competition among businesses
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Maximum contribution limits
B) Investment options available
C) Tax treatment of contributions and withdrawals
D) Age eligibility requirements
  • 16. What is the purpose of an emergency fund?
A) To invest for retirement
B) To fund luxury purchases
C) To cover unexpected expenses and financial emergencies
D) To donate to charity
  • 17. What does the term 'collateral' refer to in a loan agreement?
A) Interest rate
B) Loan term length
C) A valuable asset pledged as security for the loan
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 promote risky investments
D) To increase interest rates
  • 19. What is the concept of insurance premium?
A) The amount paid for an insurance policy
B) The cash value of the policy
C) The total coverage limit
D) The deducted claim amount
  • 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 increase property appraisal value
B) To hold funds and documents until the closing process is completed
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) Loss
B) Overhead
C) Profit
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) Job Description
B) Cover Letter
C) Job Application
D) Resume
  • 24. What economic term refers to the general increase in prices over time?
A) Deflation
B) Price Ceiling
C) Recession
D) Inflation
  • 25. Which of the following is an example of a capital resource?
A) Factory
B) Television
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) Market Penetration
B) Predatory Pricing
C) Dynamic Pricing
D) Supply and Demand
  • 27. Which of the following would be classified as a non-renewable resource?
A) Oil
B) Wind Power
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) Socialism
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) 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) National Debt
B) Budget Deficit
C) Trade Surplus
D) Revenue Growth
  • 31. Which of the following is a type of investment that represents ownership in a company?
A) Savings Account
B) Bonds
C) Real Estate
D) Stock
  • 32. What term describes a market situation where there is only one seller of a product with no close substitutes?
A) Monopoly
B) Perfect Competition
C) Monopolistic Competition
D) Oligopoly
  • 33. Which of the following is an example of a durable good?
A) Fruit
B) Toothpaste
C) Refrigerator
D) Gasoline
  • 34. Which market structure is characterized by a large number of firms producing similar but differentiated products?
A) Oligopoly
B) Perfect Competition
C) Monopolistic Competition
D) Monopoly
Created with That Quiz — a math test site for students of all grade levels.