Economics Final Exam Questions & 100%
correct answers.
Which is the most effective solution when planning for retirement? ANS - Start as soon as possible to
maximize savings
The marketing mix, also known as the Four Ps of Marketing, consists of product, price, promotion, and
_[blank]_. ANS - Place
Which type of expense can change based on use or volume? ANS - Variable
Joe works full time as a carpenter and brings home $3,000 per month. He owes a total of $1,500 in fixed
expenses every month, which includes items such as rent and insurance.
If Joe had $1,000 in variable expenses such as groceries and entertainment, what would be his ending
balance? ANS - $500
What was the original purpose of savings and loan associations? ANS - a way for groups of people to
pool their money so that each member could build or buy a home
What are some advantages of using a debit card as opposed to cash? ANS - Debit cards can help track
spending carefully and accurately.
Debit cards can be replaced if they are lost.
Alan and Samuel each have a 30-year mortgage. Both mortgages were approved at the same time. Alan
pays 5 percent interest, while Samuel only pays 3.5 percent.
, If Alan and Samuel are the same age and make the same amount of money, why is Alan paying more in
interest? ANS - Samuel has a better credit score, so his interest rate is lower.
Which is an example of an unsecured revolving loan? ANS - credit card
How are whole life insurance and term life insurance different? ANS - Whole life insurance does not
expire, but term life insurance does.
What role does income tax serve for the federal government? ANS - It is the largest source of revenue
for the federal government.
Which are benefits of a mixed market economy? ANS - A mixed market economy provides a wide
variety of products and services.
A mixed market economy provides some regulation to protect consumers.
Manny wishes to sell candy bars to his classmates to earn extra money. ANS - why to produce
Why do command economies fail? ANS - People have little incentive to innovate.
The market allocates resources.
Large, slow bureaucracies form.
In a market economy, the exclusive possession or control of the supply or trade in a commodity or
service can develop, discouraging competition. ANS - monopoly
Which accurately reflect the role of government in a mixed market economy? ANS - The government
owns or partially owns some businesses.
The government requires businesses to provide truthful advertising.
correct answers.
Which is the most effective solution when planning for retirement? ANS - Start as soon as possible to
maximize savings
The marketing mix, also known as the Four Ps of Marketing, consists of product, price, promotion, and
_[blank]_. ANS - Place
Which type of expense can change based on use or volume? ANS - Variable
Joe works full time as a carpenter and brings home $3,000 per month. He owes a total of $1,500 in fixed
expenses every month, which includes items such as rent and insurance.
If Joe had $1,000 in variable expenses such as groceries and entertainment, what would be his ending
balance? ANS - $500
What was the original purpose of savings and loan associations? ANS - a way for groups of people to
pool their money so that each member could build or buy a home
What are some advantages of using a debit card as opposed to cash? ANS - Debit cards can help track
spending carefully and accurately.
Debit cards can be replaced if they are lost.
Alan and Samuel each have a 30-year mortgage. Both mortgages were approved at the same time. Alan
pays 5 percent interest, while Samuel only pays 3.5 percent.
, If Alan and Samuel are the same age and make the same amount of money, why is Alan paying more in
interest? ANS - Samuel has a better credit score, so his interest rate is lower.
Which is an example of an unsecured revolving loan? ANS - credit card
How are whole life insurance and term life insurance different? ANS - Whole life insurance does not
expire, but term life insurance does.
What role does income tax serve for the federal government? ANS - It is the largest source of revenue
for the federal government.
Which are benefits of a mixed market economy? ANS - A mixed market economy provides a wide
variety of products and services.
A mixed market economy provides some regulation to protect consumers.
Manny wishes to sell candy bars to his classmates to earn extra money. ANS - why to produce
Why do command economies fail? ANS - People have little incentive to innovate.
The market allocates resources.
Large, slow bureaucracies form.
In a market economy, the exclusive possession or control of the supply or trade in a commodity or
service can develop, discouraging competition. ANS - monopoly
Which accurately reflect the role of government in a mixed market economy? ANS - The government
owns or partially owns some businesses.
The government requires businesses to provide truthful advertising.
