Personal Finance Study Questions 1
Section 1 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. Name at least two things financial planning could help you do. (0.5 points) College, house payments
2. What is trade? (0.5 points) Buying and selling goods and services
3. What is a service? (0.5 points) Something of value a person can do of others
4. Name one of the three functions of money. (0.5 points) To act as a measure of value
5. The real estate market is categorized in which way? (0.5 points) By location and commodity
6. What is a country’s GDP? (0.5 points) Gross Domestic Product
Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) It bases buying and selling products on the supply and demand of the consumer
2. Name at least two features of capitalism. (1.0 points) Competitive markets, wage labor
3. A business that sells watches that are more inexpensive than the watches a competitor sells is using which type of competition? (0.5 points)
Direct and price comp
4. What is a monopoly? (0.5 points) Possession or control of the supply or trade in a commodity or service
5. What is a motive? (0.5 points) A reason to do something
Lesson 3 (3.0 points) 1. What is land as a factor of production? (0.5 points) Not just the surface of the earth, but everything in the universe that wasn’t created by people
2. What does the Law of Demand say? (0.5 points) The price of a product is determined by the supply and demand of the good
3. What does the Law of Supply say? (0.5 points) If prices will go up supply increases and supply will decrease if the price goes down
4. What is elasticity? (0.5 points) How much the price of a product affects the demand
5. What does tangible mean? (0.5 points) Can be physically held/touched
6. What is capital as a factor of production? (0.5 points) Those goods which are produced by the economic system and are used as inputs in the
2. What is trade? (0.5 points) Buying and selling goods and services
3. What is a service? (0.5 points) Something of value a person can do of others
4. Name one of the three functions of money. (0.5 points) To act as a measure of value
5. The real estate market is categorized in which way? (0.5 points) By location and commodity
6. What is a country’s GDP? (0.5 points) Gross Domestic Product
Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) It bases buying and selling products on the supply and demand of the consumer
2. Name at least two features of capitalism. (1.0 points) Competitive markets, wage labor
3. A business that sells watches that are more inexpensive than the watches a competitor sells is using which type of competition? (0.5 points)
Direct and price comp
4. What is a monopoly? (0.5 points) Possession or control of the supply or trade in a commodity or service
5. What is a motive? (0.5 points) A reason to do something
Lesson 3 (3.0 points) 1. What is land as a factor of production? (0.5 points) Not just the surface of the earth, but everything in the universe that wasn’t created by people
2. What does the Law of Demand say? (0.5 points) The price of a product is determined by the supply and demand of the good
3. What does the Law of Supply say? (0.5 points) If prices will go up supply increases and supply will decrease if the price goes down
4. What is elasticity? (0.5 points) How much the price of a product affects the demand
5. What does tangible mean? (0.5 points) Can be physically held/touched
6. What is capital as a factor of production? (0.5 points) Those goods which are produced by the economic system and are used as inputs in the