Chapter 17 Economics Test



Indicate the answer choice that best completes the statement or answers the question.1.?Responsible credit card use?a.?requires a full understanding of the APR.?b.?means paying only the minimum payment.?c.?does not affect your credit score.?d.?includes using credit cards for impulse buys.2.?What is a budget??a.?a careful record of all the money that you earn and spend?b.?the ability to pay later for something that you receive today?c.?a monthly payment that teaches you financial discipline?d.?the amount of money left over after subtracting expenses?3.? Which of the following is expected of local government??a.?dealing with consumers’ complaints?b.?information about rates?c.?a fair deal?d.?providing one’s own wiring4.? The FCC plans to protect consumers’ right to?a.?free cable service.?b.?speedy government response.?c.?cuts in programming rates.?d.?purchase cable set-top boxes at competitive rates.5.? This excerpt is an example of?a.?consumers’ responsibilities.?b.?consumers’ rights.?c.?companies’ responsibilities.?d.?companies’ rights.6.?Which consumer right protects the consumer from being left out of the law-writing process??a.?the right to redress?b.?the right to be heard?c.?the right to choose?d.?the right to safe products7.?Consumers have a responsibility to?a.?prove that products are safe.?b.?buy the products and brands that they like.?c.?comparison shop.?d.?provide a variety of products.8.?Which of the following is a drawback of having credit??a.?obtaining something you want before you have all the money to pay for it?b.?spending more than you can afford by using easily available credit?c.?learning financial discipline by making monthly payments?d.?analyzing your financial situation to see whether you can afford to charge9.?If you own stock in a company and the company does well,?a.?the price of a share of stock will probably go down.?b.?the company will probably pay back their bonds.?c.?the price of a share of stock will probably go up.?d.?the company will probably issue a bond.10.?After making a budget, and analyzing your data, you decide that you can afford to buy a new bicycle. Your budget probably showed that you had a?a.?deficit.?b.?balance.?c.?surplus.?d.?disposable income.11.?One purpose of saving money is to?a.?collect enough money for a major purchase.?b.?decrease interest when paying back a loan.?c.?make a plan for expenditures and income.?d.?increase risk when investing for the long term.12.?You are making a monthly budget. Your budget includes $40 that you earned from babysitting, $16 that you earned from your allowance, $30 that you spent on entertainment, and $25 that you spent on clothing. What is your balance??a.?positive $56?b.?negative $1?c.?negative $55?d.?positive $113.?To prevent impulse buying, you should?a.?shop with a friend who has similar tastes.?b.?make a shopping list and stick to it.?c.?purchase items displayed at the checkout counter.?d.?buy things that you know that you will tire of quickly.14.?A person who loans someone money to buy an item is?a.?a consumer.?b.?an investor.?c.?a borrower.?d.?a lender.?15.? This excerpt is educating consumers about credit card?a.?debt.?b.?fees and APR.?c.?scams.?d.?APR delinquencies.16.? The Federal Trade Commission is probably giving this information to consumers because it?a.?thinks that banks try to cheat consumers.?b.?wants banks and other institutions to be clearer about credit offers.?c.?believes that credit cards should be used by all Americans.?d.?hopes that consumers will understand all the details about using credit.17.? According to this excerpt, which of the following is true??a.?Annual Percentage Rates (APR) are over 20 percent for all transactions.?b.?Your APR can increase if you use your card to get a cash advance.?c.?Some issuers may charge a fee if you make a payment before the due date.?d.?Issuers may charge fees if you go over your credit limit.18.?Your ____________ is the money you earn from all sources and your ____________ are the money you choose to spend.?a.?collateral/interests?b.?income/expenses?c.?balance/expenditures?d.?surplus/deficits19.?Long-term financial goals?a.?sometimes conflict with short-term spending.?b.?include spending money as you receive it.?c.?can keep you from furthering your education.?d.?mean buying what you want when you want it.20.?Property put down as security for a loan is known as?a.?dividend.?b.?collateral.?c.?budget.?d.?charge.Answer Key1.?a2.?a3.?a4.?d5.?b6.?b7.?c8.?b9.?c10.?c11.?a12.?d13.?b14.?d15.?b16.?d17.?d18.?b19.?a20.?b ................
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