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) Gross Domestic Product
C) Government Development Program
D) General Demand Probability
  • 2. Which of the following is an example of fixed expenses?
A) Grocery shopping
B) Rent
C) Movie tickets
D) Clothing purchases
  • 3. What is the primary purpose of a budget?
A) To restrict financial freedom
B) To plan and track income and expenses
C) To encourage overspending
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 increase monthly expenses
B) To protect against financial losses
C) To reduce emergency savings
D) To encourage risky behavior
  • 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) Actual Purchase Reward
B) Annual Percentage Rate
C) Asset Protection Ratio
D) Average Payment Return
  • 8. What is the definition of disposable income?
A) Total amount earned
B) Income available after taxes
C) Money spent on essential items
D) Gross salary before deductions
  • 9. Which of the following is a form of progressive tax?
A) Excise tax
B) Property tax
C) Sales tax
D) Income tax
  • 10. What is a certificate of deposit (CD)?
A) A form of personal insurance
B) A time deposit with a fixed term and interest rate
C) A government-issued subsidy
D) A credit card limit
  • 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) A general increase in prices and fall in the purchasing value of money
B) A decrease in taxes
C) An increase in savings interest rates
D) A rise in unemployment rates
  • 13. Which type of interest is charged on a credit card balance?
A) Simple interest
B) Negative interest
C) Fixed interest
D) Compound interest
  • 14. What is the purpose of a stock market?
A) To control government spending
B) To eliminate competition among businesses
C) To provide interest-free loans to individuals
D) To allow companies to raise capital by selling shares of ownership
  • 15. What is the difference between a traditional IRA and a Roth IRA?
A) Maximum contribution limits
B) Tax treatment of contributions and withdrawals
C) Age eligibility requirements
D) Investment options available
  • 16. What is the purpose of an emergency fund?
A) To donate to charity
B) To cover unexpected expenses and financial emergencies
C) To invest for retirement
D) To fund luxury purchases
  • 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 encourage overspending
B) To help individuals manage debt and improve financial literacy
C) To increase interest rates
D) To promote risky investments
  • 19. What is the concept of insurance premium?
A) The deducted claim amount
B) The amount paid for an insurance policy
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 avoid property taxes
B) To sell stocks in the housing market
C) To borrow money to purchase a property
D) To provide a rental agreement
  • 21. What is the role of escrow in a real estate transaction?
A) To waive inspection requirements
B) To increase property appraisal value
C) To negotiate rent prices
D) To hold funds and documents until the closing process is completed
  • 22. What is the name for the amount of money a business earns over and above its expenses?
A) Profit
B) Loss
C) Overhead
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) Resume
B) Job Application
C) Job Description
D) Cover Letter
  • 24. What economic term refers to the general increase in prices over time?
A) Inflation
B) Deflation
C) Price Ceiling
D) Recession
  • 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) Dynamic Pricing
B) Supply and Demand
C) Market Penetration
D) Predatory Pricing
  • 27. Which of the following would be classified as a non-renewable resource?
A) Hydroelectricity
B) Oil
C) Wind Power
D) Solar Energy
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Socialism
B) Capitalism
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) Hyperinflation
B) Recession
C) Stagflation
D) Depression
  • 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) Revenue Growth
D) Trade Surplus
  • 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) Perfect Competition
C) Oligopoly
D) Monopolistic Competition
  • 33. Which of the following is an example of a durable good?
A) Refrigerator
B) Toothpaste
C) Gasoline
D) Fruit
  • 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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