,
,
,
,
, to achieve your personal goals, your confidence and peace of mind regarding your financial
situation, or your financial well-being, will increase.
Diff: 1
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
15) If you slow down or stop spending, what happens to GDP?
A) GDP increases.
B) GDP decreases.
C) GDP is unchanged.
D) GDP is not related to consumer spending.
Answer: B
Explanation: Gross domestic product (GDP) is measured by adding up how much a country
produces in goods and services in a year. Everything from the value of cars to the value of the
shrubs and flowers purchased at a local store is included in GDP. Since nearly two-thirds (66%) of
GDP consists of consumer spending, the more consumers spend, the larger GDP becomes. On the
other hand, if consumption slows down, GDP goes down.
Diff: 2
LO: 1.1, Section 1.1
Bloom: A
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
16) Your ability and willingness to work, learn, earn, and make wise decisions about how to save
and invest money refers to what?
A) Financial literacy.
B) Financial well-being.
C) Social capital.
D) Human capital.
Answer: D
Explanation: Human capital is your ability and willingness to work, learn, earn, and make wise
decisions about how to save and invest money.
Diff: 1
LO: 1.2, Section 1.2
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
17) How well you are able to form connections with other people is referred to as what?
A) Financial literacy.
B) Financial well-being.
C) Social capital.
D) Human capital.
6
,
,
,
, to achieve your personal goals, your confidence and peace of mind regarding your financial
situation, or your financial well-being, will increase.
Diff: 1
LO: 1.1, Section 1.1
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
15) If you slow down or stop spending, what happens to GDP?
A) GDP increases.
B) GDP decreases.
C) GDP is unchanged.
D) GDP is not related to consumer spending.
Answer: B
Explanation: Gross domestic product (GDP) is measured by adding up how much a country
produces in goods and services in a year. Everything from the value of cars to the value of the
shrubs and flowers purchased at a local store is included in GDP. Since nearly two-thirds (66%) of
GDP consists of consumer spending, the more consumers spend, the larger GDP becomes. On the
other hand, if consumption slows down, GDP goes down.
Diff: 2
LO: 1.1, Section 1.1
Bloom: A
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
16) Your ability and willingness to work, learn, earn, and make wise decisions about how to save
and invest money refers to what?
A) Financial literacy.
B) Financial well-being.
C) Social capital.
D) Human capital.
Answer: D
Explanation: Human capital is your ability and willingness to work, learn, earn, and make wise
decisions about how to save and invest money.
Diff: 1
LO: 1.2, Section 1.2
Bloom: C
AACSB / IMA: none; none
AICPA: FC: none
Min: 1
17) How well you are able to form connections with other people is referred to as what?
A) Financial literacy.
B) Financial well-being.
C) Social capital.
D) Human capital.
6
