section 1 study quesions
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)
• Create a budget.
• Fund your education or the education of your children.
• Save and invest money.
• Borrow money to make big purchases like houses or cars.
• Purchase items at low prices.
• Use credit cards responsibly.
• Plan for retirement.
• Set financial goals.
• Keep track of the money you earn and the money you spend.
• Understand how taxes work.
• Make choices about how to spend money responsibly. 2. What is trade? (0.5 points)
Trade – The exchange of things of value. 3. What is a service? (0.5 points)
Service – Something of value that a person can do for other people. A service is some type of Commodity.
4. Name one of the three functions of money. (0.5 points)
Medium of exchange
Store of value
Unit of account 5. The real estate market is categorized in which way? (0.5 points)
By commodity 6. What is a country’s GDP? (0.5 points)
The country's GDP which is the gross domestic product, is the value of the goods and services produced in that country. Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points)
A market economy is an economic system that is regulated by the interactions between producers and consumers in the market. 2. Name at least two features of capitalism. (1.0 points)
Capitalism is also called a free enterprise system or a private enterprise system. 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 Competitors
4. What is a monopoly? (0.5 points)
Monopoly – When a business becomes too powerful and makes it hard for others to compete. One company controls an entire area of
• Create a budget.
• Fund your education or the education of your children.
• Save and invest money.
• Borrow money to make big purchases like houses or cars.
• Purchase items at low prices.
• Use credit cards responsibly.
• Plan for retirement.
• Set financial goals.
• Keep track of the money you earn and the money you spend.
• Understand how taxes work.
• Make choices about how to spend money responsibly. 2. What is trade? (0.5 points)
Trade – The exchange of things of value. 3. What is a service? (0.5 points)
Service – Something of value that a person can do for other people. A service is some type of Commodity.
4. Name one of the three functions of money. (0.5 points)
Medium of exchange
Store of value
Unit of account 5. The real estate market is categorized in which way? (0.5 points)
By commodity 6. What is a country’s GDP? (0.5 points)
The country's GDP which is the gross domestic product, is the value of the goods and services produced in that country. Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points)
A market economy is an economic system that is regulated by the interactions between producers and consumers in the market. 2. Name at least two features of capitalism. (1.0 points)
Capitalism is also called a free enterprise system or a private enterprise system. 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 Competitors
4. What is a monopoly? (0.5 points)
Monopoly – When a business becomes too powerful and makes it hard for others to compete. One company controls an entire area of