AnswersCMS 2026-2027 Economics and Personal Finance CREDIT RECOVERYSpending

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1
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Why might people choose to rent a home rather than buy a home?

A
They have a long-term commitment to the area.
B
The interest rates on equity are too high.
C
They have a lot of money saved for a down payment.
D
The property maintenance is the owner's responsibility.
2
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Building equity in a home is a good thing because

A
equity in a home increases the homeowner’s net worth.
B
mortgage payments decrease as equity increases.
C
credit scores increase as equity increases.
D
property taxes decrease as equity increases.
3

Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottles. Which of these makes the most economic sense?

A
two cases of 24 sodas at 18 point 5 0 dollars each
B
20 bottles of soda at 1 point 5 0 dollars each
C
one case of 24 sodas at 18 point 5 0 dollars
D
4 six-packs of soda at 5 point 0 0 dollars each
4

Read the scenario. Raoul has just been promoted to a supervisor’s position, which is a steady job. He likes to enjoy life, take vacations, and change things up every now and then. That’s why he will not have a lot of extra money to spend on repairs and maintenance on his car. Based on this scenario, Raoul should

A
lease a used car.
B
buy a used car.
C
lease a new car.
D
buy a new car.
5

At what point does buying in bulk stop being a wise spending choice?

A
when the consumer has a lot of space to store bulk items
B
when bulk items are not on sale anymore
C
when the consumer buys more than is needed
D
when costs rise too quickly due to demand
6

Why do prices increase when demand for a product is high?

A
Companies know they can make more money by selling fewer products at higher prices.
B
Companies know they can stop production and still make money on sales.
C
Companies know that people will be willing to spend more to get an in-demand product.
D
Companies take advantage of the demand to make people spend more money on excess products.
7

Read the scenario. Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. He is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit. Which of these illustrates the most economically sound choice for Brad?

A
buying both a car and a home
B
buying a car and leasing a home
C
leasing both a car and home
D
leasing a car and buying a home
8

Which option is not a potential risk of purchasing a used car?

A
used cars can require repairs sooner
B
shorter lifespans of the engine and transmission
C
used cars can have lower initial cost
D
unexpected issues may arise
9

The point at which it is no longer advantageous to buy in bulk is known as marginal

A
tipping.
B
cost.
C
error.
D
benefit.
10

A monthly fixed rate mortgage payment

A
could change.
B
never changes.
C
decreases annually.
D
increases annually.

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