1. Which are functions of money? Select all that apply. (3 points)
store of value
producer of resources
unit of account
medium of exchange
record of finances
unit of output
2. What is the main advantage of using money instead of bartering? (1 point)
Things that people usually trade have very little value to anyone.
Not all countries use the same types of money in their economies.
Money comes in many different values to pay for goods and services.
People do not have to have a good or a service that another person wants.
3. What is it called when prices rise at a high rate? (1 point)
interest rate
net export
inflation
taxes
4. Which of these events would most likely lead to a rise in interest rates for home mortgages? (1 point)
The prices of homes for sale in a certain city rise by a great deal.
Many new lenders begin offering home mortgages.
Home sales increase greatly for several months in a row.
The average time needed to sell a house doubles.
5. Jayden opens a savings account with $100.00. His account earns 4% simple interest annually. How much money will be in his account one year later if he makes no deposits or withdrawals? (1 point)
$96.00
$100.00
$104.00
$148.00
Rohan has $100.00 that he wants to save in a bank. Bank A offers two types of savings accounts. One has a 5% simple interest rate, and the other has a 4.8% compound interest rate. Bank B also offers two types of savings accounts. One has a 3% simple interest rate, and the other has a 4% compound interest rate.
Use the passage to answer the question.
6. Which account should Rohan choose in order to earn the most interest? (1 point)
Bank A simple interest account
Bank A compound interest account
Bank B simple interest account
Bank B compound interest account
7. What is the most likely effect on a person's income if he or she has little education and few skills? (1 point)
The person's income will vary greatly.
The person will earn a high income.
The person's income will decline over time.
The person will earn a low income.
8. Which of these is a non-monetary positive incentive for entrepreneurs? (1 point)
the need to hire and train workers
the risks of starting a new enterprise
the satisfaction of creating new products
the responsibilities of running a business
9. Which of these people is an example of an entrepreneur? (1 point)
Malia started selling jewelry she made in an online store.
Liam found a summer job walking dogs in his neighborhood.
Pavel worked hard to learn to speak a foreign language.
Ophelia took classes in painting and drawing at an art center.
10. Which of these actions would most help a worker improve her productivity? (1 point)
finding a new job in a different field
taking a training course related to her job
buying a laptop computer for home use
asking her employer to give her a raise
11. What increases when productivity increases? (1 point)
gross domestic product
interest rates on loans
national unemployment rates
interest rates on savings
12. Pete's Peanuts wants to grow its overall productivity. Which investment would best help the company achieve this goal? (1 point)
a larger building to store its peanuts
better advertisements for its products
new uniforms for company employees
an improved roasting and canning machine
Deepak’s city has grown quite a lot over the past ten years. The city council has been discussing the need for a second fire department so that one would serve the northern part of the city and the other would serve the southern part. The city doesn’t have much room in the budget, so some people have suggested privatizing the fire department. However, others argue that it’s critical, that this would not work, and that it should be a public service.
Use the passage to answer the question.
13. Why would it be best for the new fire department to be provided as a public service? (1 point)
Fire departments are too expensive for entrepreneurs to provide.
Demand for the fire department is greater than its supply.
The service should remain unlimited and accessible to all.
Not many people are interested in using the service.
14. Which of these is a source of only federal tax revenue? (1 point)
payroll taxes
property taxes
sales taxes
income taxes
15. What is the most likely result of new U.S. government programs beginning without any budget to pay for them? (1 point)
Citizens in the future will have fewer services or higher taxes.
Politicians will have less chance of being re-elected to office.
Americans will offer to pay higher taxes to balance the budget.
Goods and services will continue to become more expensive.
16. What is the best definition of gross domestic product, or GDP? (1 point)
money paid to the government in taxes to support public goods and services
the value of all goods and services produced within domestic borders
the value of exports minus the total value of imports
a period of decline in overall income and employment
17. In a circular flow diagram, what flows from households to businesses? (1 point)
income
land
expenditures
goods
18. What does a rise in per capita GDP indicate? (1 point)
increased productivity
better trade deals
more bank loans
increased population
19. Mr. Lee received a raise at a job this year, but he finds that he has less money to spend each month even though his spending habits are the same. What is the most likely reason for this situation? (1 point)
The supply of goods and services has risen.
Unemployment has dropped across the country.
Mr. Lee is not tracking his finances.
Inflation was greater than Mr. Lee's raise.
20. Which of these are factors in determining whether a person is counted in the unemployment rate? Select all that apply. (2 points)
whether the person is actively looking for a job
whether the person has been employed for five or more years
whether the person has the skills needed to find a job
whether the person is willing and able to work
whether the person is over 21 years of age
21. New technology has made most of the jobs workers do at a particular factory obsolete, and they are laid off. Which type of unemployment are they experiencing? (1 point)
structural
casual
frictional
cyclical
22. Which type of investment are stocks? (1 point)
lending
ownership
cash equivalent
interest
23. Which is an example of an oligopoly? (1 point)
many different soap companies giving consumers choices
a few soda companies competing for business
one shipping company with no competition
several grocery stores stocking different items
24. If the price of stock falls dramatically but an investor thinks it will go up again, what is the investor likely to do? (1 point)
trade shares
sell shares
buy shares
do nothing
25. Eddie has a credit card on which he makes monthly payments and tries not to carry a balance. What kind of credit is this? Select all that apply. (2 points)
non-revolving
revolving
secured
unsecured
flexible
Riya recently bought a new phone. She was taking a photo of her sister when she dropped the phone in the pool. The company that made the phone told her they wouldn’t replace it. Riya decides to call her credit card company to find out if they can help.
Use the passage to answer the question.
26. Which advantage of credit is Riya seeking to use? (1 point)
emergencies
purchase power
building a credit line
protection of purchases
27. What is a regular car payment an example of? (1 point)
fixed expense
variable expense
interest
ownership investment
@uhhh @Answers,please! I hope this helps stay awesome my dudes!<3
1. A,C,D Store of value, Unit of account, medium of exchange
2. D People do not have a good or a service that another person wants.
3. C inflation
4. C Home sales increase greatly for several months in a row.
5. C $104.00
6. B Bank A compound interest account
7. D The person will earn low income.
8. C the satisfaction of creating new products
9. A Malia stated selling jewelry she made in an online store
10. B taking a training course related to her job
11. A Gross domestic product
12. D an improved roasting and canning machine
13. C The service should remain unlimited and accessible to all
14. A payroll taxes
15. A Citizens in the future will have fewer services or higher taxes
16. B the value of all goods and services produced within domestic boarders
17. C expenditures
18. A increased productivity
19. D inflation was greater than Mr. Lee's raise
20. A,D Whether the person is actively looking for a job/whether the person is willing and able to work
21. A structural
22. B ownership
23. B a few soda companies competing for business
24. C buy shares
25. B,D revolving/ unsecured
26. D protection of purchases
27. A fixed expense
rocker is 100% right, follow his answers if you want an easy hundred, but be careful sometimes they switch the answers around, so look at the sentence for the answer if the letter answers dont add up
rocker is right
rocker's correct on everything! thank you!!
yo whats the answers
Anyone have the answers? This test is super confusing for me
as of 6/2/19 theys good
Ty so very much rockerbarbiiexoxo! Wouldn't have gotten 100 without you :)
Their answers are still accurate as of 6/5/2019.