Busn380 Homework Help
True / False Questions
1. Increased demand for a product or service will usually result in lower prices for the item. FALSE
2. Inflation reduces the buying power of money. TRUE
3. When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years. TRUE
4. A decrease in the demand for a product or service may result in a decrease in wages for people producing that item. TRUE
5. A financial plan is another name for a budget. FALSE
6. Short-term goals are usually achieved within the next year or so. TRUE
7. Opportunity costs refer to time, money, and other resources that are given up when a decision is made. TRUE
8. Risks associated with most financial decisions are fairly easy to measure. FALSE
9. The financial planning process is complete once you implement your financial plan.
FALSE
Multiple Choice Questions
10. Higher prices are likely to result from:
A. lower demand by consumers.
B. increased production by business.
C. lower interest rates.
D. increased spending by consumers without increased production.
E. an increase in the supply of a product.
11. With an inflation rate of 9 percent, prices would double in about ___________ years.
A. 4
B. 6
C. 8
D. 10
E. 12
12. Increased consumer spending will usually cause:
A. lower consumer prices.
B. reduced employment levels.
C. lower tax revenues.
D. lower interest rates.
E. higher employment levels. 13. The main economic influence that determines prices is:
A. the stock market.
B. interest rates.
C. employment.
D. government spending.
E. supply and demand.
14. As Jean Tyler plans to set aside funds for her young children 's college education, she is setting a(n) ____________ goal.
A. intermediate
B. long-term
C. short-term
D. intangible
E. durable
15. Brad Opper has a goal of "saving $50 a month for vacation." Brad 's goal lacks:
A. measurable terms.
B. a
1. Increased demand for a product or service will usually result in lower prices for the item. FALSE
2. Inflation reduces the buying power of money. TRUE
3. When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years. TRUE
4. A decrease in the demand for a product or service may result in a decrease in wages for people producing that item. TRUE
5. A financial plan is another name for a budget. FALSE
6. Short-term goals are usually achieved within the next year or so. TRUE
7. Opportunity costs refer to time, money, and other resources that are given up when a decision is made. TRUE
8. Risks associated with most financial decisions are fairly easy to measure. FALSE
9. The financial planning process is complete once you implement your financial plan.
FALSE
Multiple Choice Questions
10. Higher prices are likely to result from:
A. lower demand by consumers.
B. increased production by business.
C. lower interest rates.
D. increased spending by consumers without increased production.
E. an increase in the supply of a product.
11. With an inflation rate of 9 percent, prices would double in about ___________ years.
A. 4
B. 6
C. 8
D. 10
E. 12
12. Increased consumer spending will usually cause:
A. lower consumer prices.
B. reduced employment levels.
C. lower tax revenues.
D. lower interest rates.
E. higher employment levels. 13. The main economic influence that determines prices is:
A. the stock market.
B. interest rates.
C. employment.
D. government spending.
E. supply and demand.
14. As Jean Tyler plans to set aside funds for her young children 's college education, she is setting a(n) ____________ goal.
A. intermediate
B. long-term
C. short-term
D. intangible
E. durable
15. Brad Opper has a goal of "saving $50 a month for vacation." Brad 's goal lacks:
A. measurable terms.
B. a