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1
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What does this graph demonstrate?

A
the amount of microwaves produced decreases the price
B
the price decreases with a larger quantity demanded
C
the price increases with a larger quantity demanded
D
the amount of microwaves produced increases the price
2
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Why would a consumer choose to pay cash?

A
to spread payments out over time
B
to avoid saving for a down payment
C
to take advantage of low interest
D
to pay the lowest possible price
3

Glenda selects express shipping for her purchase and the company bills her credit card 91 point 8 6 dollars for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase.

A
Glenda has been over charged by 3 point 8 0 dollars for her purchase.
B
Glenda has been billed correctly.
C
Glenda has not been charged enough for her purchase.
D
Glenda has been over charged by 3 point 4 0 dollars for her purchase.
4

This chart demonstrates that the marginal cost

A
initially decreases as production increases.
B
eventually decreases as production increases.
C
initially increases as production increases.
D
eventually increases as production decreases.
5

Which statement best supports the idea that the United States has a progressive income tax?

A
The more money someone makes, the higher the percentage he or she pays in taxes.
B
Americans pay higher taxes than single-wage earners in other countries.
C
Tax percentages are evenly distributed across the tax brackets.
D
Single-wage earners are taxed at the same percentage, regardless of income.
6

What does the graph show about the relationship between a product and its price?

A
As the amount of a product goes down, the price goes up.
B
As the interest in a product goes down, the price goes up.
C
As the interest in a product goes up, the price goes up.
D
As the amount of a product goes up, the price goes up.
7

Why do higher interest rates often lead to lower stock prices?

A
Higher borrowing costs can reduce company profits
B
Inflation immediately drops
C
Investors prefer higher-risk assets
D
Companies receive more loans
8

How can you keep credit utilization low and still have the convenience of a credit card as you work to repair your credit score after bankruptcy?

A
Increase credit limits on your cards to have more money to spend.
B
Cancel and shred paid-off cards to avoid the temptation of using them.
C
Apply for a personal loan to pay down the balances of maxed-out cards.
D
Apply for a secure credit card with a cash deposit made to that account.
9

What role do special government agencies play in protecting buyers? Choose three correct answers.

A
They promote certain products for companies.
B
They provide information about products.
C
They dictate marketing strategies to companies.
D
They collect customer fraud complaints.
E
They help consumers determine marginal cost.
F
They create regulations to ensure safe products.
11

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

A
immediately copy the successful product.
B
try to develop their own products.
C
create many companion products.
D
attempt to improve the product.
12

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 stimulate the economy while decreasing unemployment
C
to encourage the invention and development of products
D
to limit the amount of personal funds used to start the business
13

Mr. and Mrs. Nedage are filing a joint tax return. While listing their deductions, they find that they can deduct $2,150 from medical bills, $826 from state taxes, $3,133 from charitable donations, and $1,331 from interest on their mortgage. The standard deduction for married couples filing jointly is $8,350. How does the standard deduction compare to the Nedages’ deductions?

A
The standard deduction is $910 better than the Nedages’ deductions.
B
The Nedages’ deductions are $1,740 better than the standard deduction.
C
The standard deduction is $9,260 better than the Nedages’ deductions.
D
The Nedages’ deductions are $7,440 better than the standard deduction.
14

What is a key difference between grants and loans?

A
grants do not require repayment
B
both require repayment
C
grants increase debt
D
loans are free
16

In what way does the economy benefit from the new products or services created by an entrepreneur?

A
Increases amount of grants from the government
B
Increases productivity
C
Decreases availability of goods and services
D
Decreases employment
17

Why might an investor avoid putting all money into a single stock?

A
It eliminates market changes
B
It increases the risk of large losses
C
It guarantees lower returns
D
It prevents diversification benefits
18

Which is an accurate statement regarding fantasy sports?

A
Fantasy sports require a draft that charges more to secure better athletes.
B
Fantasy sports require skill and not luck, so the odds are more controllable.
C
Teams are created by a random draw where players are assigned to each manager.
D
Teams are created by a draft where skill and knowledge of the players’ statistics are assets.
19

Which portfolio is most diversified?

A
Mix of stocks and bonds
B
All stocks in one company
C
One mutual fund only
D
Only cash
20

What must people taking out a mortgage agree to? Choose three correct answers.

A
payment terms
B
a loan amount
C
an interest rate
D
renovation ideas
E
plans for repairs
21

Which choice best shows correct alignment of risk and investment?

A
Long-term goal with diversified stocks.
B
Immediate need with high-risk investments.
C
Short-term goal with speculative assets.
D
Low risk tolerance with volatile assets.
22

What is the best definition of profit?

A
Profit is the possible income from producing an additional item.
B
Profit is the price of producing one additional unit of a good.
C
Profit is the additional income gained from selling an additional good.
D
Profit is the financial gain from business activity minus expenses.

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