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Cumulative Exam — Cumulative exam Answers

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21
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Which best defines a service?

A
a task that is performed in exchange for payment
B
an object that is acquired
C
a plan that is executed
D
an image that is drawn
22
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What is an advantage of an adjustable-rate mortgage?

A
A borrower always knows how much to pay the bank each month.
B
A borrower can purchase a home with little financial risk.
C
A drop in interest rates may result in lower monthly payments.
D
A rise in interest rates may result in lower monthly payments.
23

An annual percentage rate, or APR, represents how much

A
interest is paid over a year.
B
interest is paid over many years.
C
principal is paid over a year
D
principal is paid over many years.
24

What is one example of a closed economy?

A
a barter system that does not rely on money or other currency
B
a restricted system that blocks trade with international partners
C
a trade-based system that encourages the flow of goods and services
D
an old-fashioned system that preserves traditional choices and customs
25

Which is a desirable characteristic when choosing a line of credit?

A
rewards program
B
annual fee
C
amount of down payment
D
amount of collateral
26

Joaquin used the table to predict the cost of one year of education at a four-year public university. CategoryPredicted Costtuition$9,450room and board$7,920transportation$2,680books and fees$1,875other$930He received a grant for $1,900. What is the minimum amount Joaquin will need to contribute to his education annually if he chooses to live at home?

A
$13,035
B
$14,935
C
$20,955
D
$22,855
27

The factors of production include the number of

A
customers needed to make a profit on a good.
B
consumers who show an interest in a good.
C
employees needed to manufacture a good.
D
producers who supply the same good.
28

Insurance offers consumers

A
protection from the costs of unplanned events.
B
a guarantee that a business will succeed.
C
income to help start a new business venture.
D
full reimbursement after business setbacks.
29

In a free market system, price control can include both a floor and a .

Answer not available
30

Which statement best explains a scholarship?

A
A scholarship is federal money awarded to a student.
B
A scholarship is aid given to a student by an institution.
C
A scholarship is money borrowed to pay for an education.
D
A scholarship is the price of attending classes at a school.
31

What budget allocation can be changed if you alter your daily spending habits?

A
rent
B
savings
C
insurance
D
car payment
32

Shawna wants to ensure that she has a good income throughout her retirement. Which method could she employ?

A
She could work fewer hours each week so she will stay strong and retire later.
B
She could start a 401K account and choose a position with matching deposits by the employer.
C
She could save money by not attending post-secondary school or vocational training.
D
She could ensure that she doesn’t get sick by taking her vitamins each day.
33

Skye listed her assets and liabilities on a personal balance sheet. Skye’s Balance Sheet (April 2013)AssetsLiabilitiescash$1,000credit card$4,000investments$1,000student loan$1,000house$200,000mortgage$100,000car$8,000car loan$5,000Total???Total???Net Worth: ???What is Skye’s net worth?

A
$100,000
B
$110,000
C
$210,000
D
$320,000
34

What is an advantage of an adjustable-rate mortgage?

A
A borrower always knows how much to pay the bank each month.
B
A borrower can purchase a home with little financial risk.
C
A drop in interest rates may result in lower monthly payments.
D
A rise in interest rates may result in lower monthly payments.
35

The Wong family bought a $190,000 home in 2001. They obtained a mortgage loan for 30 years. The monthly payment, not including property taxes and insurance, is $995. How much total principal and interest will they pay for the house after 30 years?

A
$168,200
B
$190,000
C
$358,200
D
$548,200
36

Carlos wrote a check for $44.92 to pay his gas bill. He’ll use the check register to record his transaction. What will be his new balance?

Question illustration
A
$345.09
B
$370.09
C
$434.93
D
$459.93
37

What is one main objective in the study of economics?

A
recognizing the types of services available to everyone
B
recognizing the relationship between producers and consumers
C
recognizing the reasons why consumers supply services
D
recognizing the difference between producers and consumers
38

Giselle used the table to predict the cost of one year of college. CategoryEstimated Cost 2017–2018tuition$12,450room and board$10,125transportation$2,600books and fees$2,250other$1,250Giselle predicts that she will receive a grant for $4,000. If she has 4 years in which to save, what is the minimum monthly amount she should deposit in an interest bearing savings account to be able to pay her contribution for one year of college?

A
$400
B
$500
C
$600
D
$700
39

Besides the actual mortgage payment, which also factors into the monthly payment on a home?

A
repair costs
B
renters' insurance
C
property taxes
D
down payment
40

How does a socialist government with a command economy manage its economy?

A
The government lets producers set wages for workers.
B
The government owns all homes and other forms of housing.
C
The government allows consumers to make their own choices.
D
The government controls factories and other forms of production.

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