AnswersSHS Lifetime Fitness - 2021Unit Test

Unit Test — Cumulative exam Answers

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Angela is considering buying stock in a popular computer software company whose price has dropped significantly in the last year. Why might this be a wise move for Angela to make?

A
because it is smart to buy when prices are high and sell when prices are low
B
because it is smart to buy when prices are low and sell when prices are high
C
because her investment will be guaranteed by the government if the company fails
D
because the company will rebound because she likes to use the products they sell
2
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Which situation is an example of comparative advantage in an international market?

A
Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export.
B
Factories in Country A and Country B produce the same number of tablet computers. Country A’s factories could be used instead to build more laptops than the factories in Country B.
C
Country A invests in a new technology while Country B chooses to invest in education.
D
Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.
3

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Answer not available
4

If Country A is an agricultural country and Country B has many cities and factories, it would make sense for

A
both countries to set up car manufacturing plants.
B
Country A to specialize in growing corn while Country B specializes in making cars.
C
Country A to specialize in making cars while Country B specializes in growing corn.
D
both countries to compete in growing more corn.
5

Which best describes what happens to a corporation after its founders retire?

A
It shuts down operations.
B
It transfers to new owners.
C
It continues in business.
D
It sells out to shareholders.
6

Which financial tool is most important when planning for your future financial goals?

A
Enrolling in a high interest savings account
B
Creating a budget
C
Mortgaging a house
D
Taking on extra debt
7

Compound interest is usually better than simple interest because it pays

A
interest on the principal and the interest earned in each period.
B
interest on the entire principal rather than the interest in each period.
C
more, as it is matched by an employer’s 401k contribution.
D
more often throughout the year rather than once a year.
8

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.
9

Which economic indicators are used to measure the global economy? Choose four answers.purchasing power paritytrade volumesspending power paritylabor market datagross domestic producttrade deficits and surpluses

A
purchasing power parity
B
trade volumes
C
spending power parity
D
labor market data
E
gross domestic product
F
trade deficits and surpluses
10

Businesses can use globalization to their advantage by

A
creating trade barriers to other countries.
B
reducing exports to other countries.
C
finding customers in other countries.
D
insourcing jobs in other countries.
11

A low-risk investment might have a high price if

A
it is in great demand.
B
it belongs to a new company.
C
it protects the initial investment.
D
it guarantees profits.
12

When entrepreneurs develop new products, other companies also experience growth because they

A
immediately copy the successful product.
B
create many companion products.
C
try to develop their own products.
D
attempt to improve the product.
13

Which option for college funding can parents start when children are still very young?

A
college savings account
B
scholarship
C
work-study
D
student loan
14

Aubrey is considering different options for paying for college. Which option would require her to repay the money plus interest?

A
scholarship
B
grant
C
work-study
D
student loan
15

How do trade agreements help the countries involved?

A
by restricting imports
B
by accelerating production
C
by expanding tax revenues
D
by decreasing trade barriers
16

Emma is trying to decide whether to buy a new laptop. As a student, she has a budget and wants to make sure this is the right financial decision. Which question should she ask herself in determining the opportunity cost of this purchase?

A
What will I have to sacrifice if I buy this laptop?
B
Can I use credit to buy this laptop?
C
Do I need this laptop for my studies?
D
Is there a less costly alternative to buying this laptop?
17

Sean’s mother had to make an emergency purchase of a new tire because her tire went flat while she was traveling to the store. She is not sure how much money she has in her checking account. Which method of payment should she use to be financially responsible?

A
She should pay by telephone with her debit card.
B
She should pay with a debit card.
C
She should pay with a credit card.
D
She should pay with a check.
18

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19

What is one reason why the government would provide financial assistance to an entrepreneur?

A
to decrease the high rate of failure of new businesses
B
to encourage the invention and development of products
C
to stimulate the economy while decreasing unemployment
D
to limit the amount of personal funds used to start the business
20

The chart shows pricing and payment options for two big-ticket items.

Question illustration
A
rent-to-own; installment
B
installment; rent-to-own
C
rent-to-own; rent-to-own
D
save up and pay cash

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