Unit Test — Unit test Answers

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Davis’s net paycheck is $2,920.50.Type of TaxAmountFederal$945.00State$225.00Medicare$65.25Social Security$344.25

A
$2,920.50
B
$2,985.75
C
$4,090.50
D
$4,500.00
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What occurs over time as a result of inflation? Check all that apply.

A
Interest becomes worth less money.
B
The dollar’s value becomes unstable.
C
Interest rates decrease.
D
Interest rates fluctuate in value.
E
The dollar’s future value changes.
23

When studying finance or economics, the cost of a decision is also known as a(n)

A
personal cost.
B
financial cost.
C
long-term cost.
D
opportunity cost.
24

Read the following excerpt from Levitt and Dubner’s Freakonomics.He had also—quite without meaning to—designed a beautiful economic experiment. From the beginning, Feldman kept rigorous data on his business. So by measuring the money collected against the bagels taken, he found it possible to tell, down to the penny, just how honest his customers were. Did they steal from him? If so, what were the characteristics of a company that stole versus a company that did not? Under what circumstances did people tend to steal more, or less?Based on the excerpt, which of the following best explains why the authors included Feldman in their study?

A
Feldman designed a beautiful economic experiment.
B
Feldman kept rigorous data on his business.
C
Feldman disliked people who stole from him.
D
Feldman encouraged people to steal less.
25

Which statement best describes how inflation affects the value of investments over time?

A
It erases the value of investments.
B
It increases the value of money.
C
It decreases the value of money.
D
It controls the value of investments.

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