Economics Semester Test

Is this your test? Login to manage it. If not, you can create a quiz just like it.

1.
4 points
The person who agrees to be responsible for loan payments if the borrower fails to make them is known as the
2.
4 points
Economic questions are answered by habits and customs (the way it has always been done) best describes which type of economy?
3.
4 points
The American dollar is backed by gold and silver
4.
4 points
Investment is
5.
4 points
When prices are lower, consumers will buy more; When prices are higher, consumers will buy less. This is the best definition of
6.
4 points
___________ is a person who chooses not to pay for a good or service but who benefits from it when it is provided
7.
4 points
__________________ is when consumers react to an increase in a good’s price by consuming less of one good and more of other goods. An example of this would be choosing a Coke over Pepsi
8.
4 points
__________________ is the full cost of not choosing the next best alternative. An example of this is choosing to watch a television program the night before a test rather than study. The benefit was the entertainment from the television program. The result was a lower grade due to failure to study for the test.
9.
4 points
Currency is anything that serves as a medium of exchange, a unit of account, and a store of value.
10.
4 points
Dividends, which are portions of a corporation’s profits, are paid out to stockholders of many corporations. The higher the corporate profit, the higher the dividend.
11.
4 points
When a producer of a popular product introduces a hot, new product, who ultimately determines the products' success?
12.
4 points
Individuals are driven by a desire to profit (make money) best describes what economic principal?
13.
4 points
A share of stock represents a portion of ownership in a corporation.
14.
4 points
In a Free Market situation, who determines wages of employees?
15.
4 points
Liquidity is the money an investor receives above and beyond the sum of money initially invested
16.
4 points
_______is the condition in which human wants are always greater than the available supply of time, goods, and resources.
17.
4 points
_______________ are issued by state or local governments to finance such improvements as highways, state buildings, libraries, and schools.
18.
4 points
____________________ is a government payment that supports a business or market. An example of this would be when a farmer is paid to NOT grow a particular crop.
19.
4 points
FDIC insures customers’ deposits up to $300,000.
20.
4 points
Collateral is something of value risked by a borrower. This guarantees the borrower will repay his debt
21.
4 points
A home mortgage is an example of an installment loan
22.
4 points
The amount of goods available best describes what?
23.
4 points
More than one producer of good/services insures choice is the best definition of
24.
4 points
Among the ways to maintain a good credit rating, which one of the following is NOT true
25.
4 points
No government influence in the economy best describes this