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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) Gross Domestic Product
B) Global Demand Pattern
C) Government Development Program
D) General Demand Probability
  • 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 increase spontaneous spending
B) To restrict financial freedom
C) To encourage overspending
D) To plan and track income and expenses
  • 4. What does ROI stand for in investment terms?
A) Risk of Investment
B) Return on Investment
C) Rate of Inflation
D) Revenue on Interest
  • 5. What is the purpose of insurance?
A) To reduce emergency savings
B) To increase monthly expenses
C) To protect against financial losses
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) Average Payment Return
B) Annual Percentage Rate
C) Asset Protection Ratio
D) Actual Purchase Reward
  • 8. What is the definition of disposable income?
A) Total amount earned
B) Money spent on essential items
C) Gross salary before deductions
D) Income available after taxes
  • 9. Which of the following is a form of progressive tax?
A) Excise tax
B) Sales tax
C) Property tax
D) Income 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 increase spending habits
B) To help individuals manage their finances and investments
C) To discourage saving
D) To encourage living paycheck to paycheck
  • 12. What is the concept of inflation?
A) A decrease in taxes
B) A general increase in prices and fall in the purchasing value of money
C) A rise in unemployment rates
D) An increase in savings interest rates
  • 13. Which type of interest is charged on a credit card balance?
A) Fixed interest
B) Simple interest
C) Compound interest
D) Negative interest
  • 14. What is the purpose of a stock market?
A) To eliminate competition among businesses
B) To control government spending
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 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) Loan term length
C) Interest rate
D) Monthly payment amount
  • 18. What is the purpose of a credit counseling service?
A) To encourage overspending
B) To increase interest rates
C) To help individuals manage debt and improve financial literacy
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 borrow money to purchase a property
B) To provide a rental agreement
C) To sell stocks in the housing market
D) To avoid property taxes
  • 21. What is the role of escrow in a real estate transaction?
A) To waive inspection requirements
B) To negotiate rent prices
C) To increase property appraisal value
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) Revenue
D) Overhead
  • 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) Inflation
B) Deflation
C) Price Ceiling
D) Recession
  • 25. Which of the following is an example of a capital resource?
A) Football
B) Factory
C) Television
D) Wheat
  • 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) Predatory Pricing
B) Market Penetration
C) Dynamic Pricing
D) Supply and Demand
  • 27. Which of the following would be classified as a non-renewable resource?
A) Oil
B) Hydroelectricity
C) Wind Power
D) Solar Energy
  • 28. Which economic regime is characterized by private ownership of the means of production and distribution?
A) Capitalism
B) Communism
C) Socialism
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) Depression
C) Stagflation
D) Recession
  • 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) Budget Deficit
D) Revenue Growth
  • 31. Which of the following is a type of investment that represents ownership in a company?
A) Bonds
B) Real Estate
C) Savings Account
D) Stock
  • 32. What term describes a market situation where there is only one seller of a product with no close substitutes?
A) Perfect Competition
B) Monopoly
C) Monopolistic Competition
D) Oligopoly
  • 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) Monopoly
C) Monopolistic Competition
D) Oligopoly
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