Section 1 Study Questions Personal Finance
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) Fund personal education and education of children. Purchase items at low prices.
2. What is trade? (0.5 points) The exchange of things of value.
3. What is a service? (0.5 points) Something of value that a person can do for other people.
4. Name one of the three functions of money. (0.5 points) Store of Value
5. The real estate market is categorized in which way? (0.5 points) By location, by commodity, and by consumer.
6. What is a country’s GDP? (0.5 points) The value of the goods and services produced in that country.(gross domestic product)
Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) A 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) Private individuals can own businesses and goods. Government has some regulations.
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) Price competition.
4. What is a monopoly? (0.5 points) When one company controls an entire area of goods or services, so that customers don't have other choices.
5. What is a motive? (0.5 points) A reason for doing something.
Lesson 3 (3.0 points) 1. What is land as a factor of production? (0.5 points) The surface of the Earth and everything in the universe that wasn't created by people.
2. What does the Law of Demand say? (0.5 points) If all other factors are equal, the demand will go down if the price goes up, and the demand will go up if the price goes down.
3. What does the Law of Supply say? (0.5 points) If all other factors are equal, the supply will increase if the price goes up, and the supply will decrease if
2. What is trade? (0.5 points) The exchange of things of value.
3. What is a service? (0.5 points) Something of value that a person can do for other people.
4. Name one of the three functions of money. (0.5 points) Store of Value
5. The real estate market is categorized in which way? (0.5 points) By location, by commodity, and by consumer.
6. What is a country’s GDP? (0.5 points) The value of the goods and services produced in that country.(gross domestic product)
Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) A 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) Private individuals can own businesses and goods. Government has some regulations.
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) Price competition.
4. What is a monopoly? (0.5 points) When one company controls an entire area of goods or services, so that customers don't have other choices.
5. What is a motive? (0.5 points) A reason for doing something.
Lesson 3 (3.0 points) 1. What is land as a factor of production? (0.5 points) The surface of the Earth and everything in the universe that wasn't created by people.
2. What does the Law of Demand say? (0.5 points) If all other factors are equal, the demand will go down if the price goes up, and the demand will go up if the price goes down.
3. What does the Law of Supply say? (0.5 points) If all other factors are equal, the supply will increase if the price goes up, and the supply will decrease if