| A | B |
|---|
| What is the most common purpose for a net worth statement? | Loan or credit application |
| On which of the following would you pay personal property tax? | Car |
| Overtime is calculated by multiplying the regular hourly rate by ______________: | 1.5 |
| Another phrase used to describe Net pay? | Take Home Pay |
| Taxes on imported goods designed to protect domestic companies: | Tariffs |
| Occurs when two or three companies control a market: | Oligopolies |
| If you invent a new product, your invention is protected by which type of property rights laws: | Patent |
| The GDP equation is: | C+I+G+(X-M) |
| Price ___________ is the maximum price, usually set by the government, that sellers may charge for a good: | Ceiling |
| Imagine that college costs $7,500 a year for tuition and books. However, if you go to work after graduation, you can earn $20,000 a year. What is the overall opportunity cost to you if you choose to go to college for 4 years instead of to work? | $80,000 |
| The government is to regulate ________________, which are large single sellers or producers of goods and services. | Monopoly |
| When the government transfers tax revenue from one group of people to another is their job to ____________________. | redistribute income |
| An increase in the overall level of prices for goods: | Inflation |
| The amount of a good or service that businesses have available to sell: | Supply |
| A rivalry between two or more businesses trying to sell products to the same customer or market: | Competition |
| The value of the option you did not select and can be determined rather accurately (giving up something for an alternative option): | Opportunity Cost |
| People who buy products: | Consumers |
| When there is not enough of something for everyone who wants it: | Scarcity |
| When many businesses try to get customers: | Competition |
| The study of the choices that people and organizations make to satisfy their wants and needs: | Economics |
| An ________________ is something positive that you get when you make a choice. | Incentive |
| Upward or downward movement economic activity that is effected by Unemployment, GDP, and Inflation: | Business Cycle |
| The phase of the Business Cycle, consumers and businesses buy only essential goods: | Trough |
| People are more interested in finding a job that best suits them rather than taking the first job that comes along: | Frictional Unemploymen |
| Determines how many jobs were created or lost during the past month, and helps predict whether the economy will grow or shrink in the near future: | Unemployment Rate |
| Index that measures how prices change over time for urban consumers: | Consumer Price Index |
| The measure of the value of goods and services produced by a country in one year: | GDP |
| U.S. Food and Drug Administration | FDA |
| U.S. Department of Agriculture | USDA |
| Securities and Exchange Commissio | SEC |
| Federal Communications Commission | FCC |
| Environmental Protection Agency | EPA |
| Federal Trade Commission | FTC |
| When the government takes private property for public use and compensates the owner: | Eminent Domain |
| When a nation imports more goods and services than it exports: | Trade Deficit |
| A decline in the economy that lasts at least six months: | Recession |
| Laws that protect original works of art, music, books, poems, etc: | Copyright |
| Which is a good example of a trademark? | Target's red bull's-eye symbol |
| In a command economy, who owns the factors of production: | Government |
| What is the philosophy that the government should not interfere in the marketplace: | Laissez Faire |
| Economic system where economic decisions are guided by customs, culture, and tradition: | Traditional Economy |
| Economic system where economic decisions are made solely by the government: | Command Economy |
| Economic system where business activity and resources are not regulated by the government: | Market Economy |
| When there is only "ONE" business in an industry; often these companies are costly and inefficient: | Monopoly |
| Man‐made things that help people do their jobs better: | Capital Goods |
| The amount of output that is produced based on the inputs used: | Measure of Productivity |
| Revenue - Costs = __________ | Profit |
| Groups of people who decide to pool their resources to buy and sell more efficiently than they could independently: | Cooperative |
| A legal entity that can earn a profit, lose money, be sued, and be found guilty of a crime...owners are called stockholders: | Corporation |
| A ____________ is a business that is owned and operated by one person: | Sole Proprietorship |
| Rent payments is an example of ________; these company costs do not change often: | Fixed Costs |
| Labor is an example of ________; these company costs change often: | Variable Cost |
| An independently owned business regulated by a parent company in which the risk of failure is lower than if one opened a brand new business: | Franchise |
| Quantity of a good that is desired | Demand |
| This is the path that products and resources take to provide goods: | Circular Flow |
| When someone combines ideas with effort and risk to create a marketable product: | Entrepreneurship |
| Companies that move production to other countries: | Offshoring |
| Companies send work via the Internet to workers in other countries: | Outsourcing |
| A place for buyers and sellers of world currencies to conduct business: | Foreign Exchange Market |
| A trade agreement designed to eliminate trade barriers between the U.S., Canada, and Mexico: | NAFTA |
| Cutting off most or all trade with another country: | Embargo |
| A legal limit that a country places on how many goods of a specific type can be imported from another country: | Quota |
| Any law that is passed with the purpose of limiting free trade among nations: | Trade Barrier |
| The amount of currency it takes to buy one unit of currency in another country: | Exchange Rate |
| A country is consuming more than it is producing, and money is flowing from the country country to its trading partners: | Trade Deficit |
| A country is producing more than it is consuming, and money is flowing from its trading partners to its economy: | Trade Surplus |
| A country can produce the good at a lower cost using the same or reduced amount of resources: | Absolute Advantage |
| Goods or services purchased from another country: | Imports |
| Goods or services that are sold to another country: | Exports |
| Money that is given to you without you having to do anything to earn it: | Unearned Income |
| A pay rate that is based on each hour you work: | Hourly Wages |
| A wage that is quoted in a flat amount and is not calculated based on the number of hours you work: | Salary |
| Extra amount of money that an employee may receive for meeting a goal or going above and beyond the job requirements: | Bonus |
| A salesperson will get a percentage of the sale and only get paid if a sale is made: | Commission |
| The more you produce, the more money you make: | Piece Rate |
| A document that describes your work experience, education, abilities, interests, and references: | Resume |
| A personal business letter that introduces you to a potential employer and describe some of your qualifications: | Cover Letter |
| On your W-4 Form, the more ___________ you claim, the less tax will be deducted each pay period. | Allowances |
| The total amount of pay before any deductions of any type are withdrawn from the pay: | Gross pay |
| The first paragraph of a cover letter should indicate the __________ of the letter. | Purpose |
| Unpaid jobs that will increase your knowledge and increase your human capital: | Internships |
| A strategy that will help you prepare for an interview includes ________ the company you are interviewing with. | Researching |
| Who is responsible for filing a tax return? | Employee |
| Which tax system has a negative effect on low-income individuals? | Regressive |
| What type of tax system does the United States use? | Progressive |
| Where does the largest amount of Federal tax revenue come from? | Federal income tax |
| Which item includes a tax in the price of the good? | Gasoline |
| What is sales tax? | Percentage tax on the sales price of many goods |
| Money that your employer holds from your paycheck in order to pay the government taxes is called ___________. | Tax withholding |
| Which form do employers use to calculate the amount of federal income tax to be withheld from your paycheck? | W-4 |
| What is the amount of money that you actually take home from your paycheck? | Net pay |
| In creating her budget, Ann realizes that her expenses exceed her income. Ann should immediately try to: | reduce or eliminate some expenses |
| In your personal filing system, you should keep all of the following EXCEPT | Medical receipts for the past 10 years |
| Which of the following could NOT be called income? | Interest paid on a loan |
| Brian wants to set up a budget but is unsure how much to put in the income section because he works more hours per week in the summer than during the school year. What will help him estimate his income for a specific month? | Pay stubs from the past year |
| What is the amount of your paycheck that you have available to spend after taxes and other deductions? | Disposable income |
| What are a house payment and insurance examples of? | Fixed expenses |
| What are lunches, medical bills, personal care items, and clothing all examples of? | Variable expenses |
| How can a value be described? | A belief or idea you consider important or desirable |
| Sharon's total assets are $2, 200 and total liabilities are $1, 500. What is her net worth? Is Sharon solvent or insolvent? | $700; solvent |
| Why does the personal property inventory have both a purchase price column and an approximate current value column? | Because of depreciation |
| Which of the following is an example of collectibles that you should include on your personal property inventory and net worth statement? | Stamp collection |
| What is a personal property inventory most commonly used for? | Proof of loss from fire, theft, or property damage |
| What are the things of value on your net worth statement known as? | Assets |
| How is personal net worth calculated? | Subtracting total liabilities from total assets |
