31 Jan 20. One disadvantage of advertising

Question 1

1. In general, the best possible way to pay for something is with

A. an installment plan.

B. a credit card.

C. cash.

D. a charge card.

Question 2

2. Why is the finance charge important to consider when shopping for credit?

A. The finance charge determines your credit worthiness.

B. The finance charge is the total you’ll have to pay for credit.

C. The finance charge relates to how long you’ll be paying the debt back.

D. The finance charge isn’t available to all borrowers.

Question 3

3. A high-skill job has a lower supply of potential workers than a low-skill job because

A. only a small number of people will have the skills or talent for a high-skill job.

B. high-skill jobs tend to be stressful.

C. low-skill jobs tend to pay much more.

D. high-skill jobs don’t pay enough.

Question 4

4. It’s advisable to start saving and investing as early as possible in order to

A. avoid paying taxes.

B. take advantage of low interest rates.

C. allow for more spending later.

D. take advantage of compound interest.

Question 5

5. Which of the following expenses tends to continuously increase as a person grows older?

A. Clothing expenses

B. Food expenses

C. Medical expenses

D. Housing expenses

Question 6

6. What government program provides hospital and medical care benefits to people age 65 or older?

A. Medicaid

B. Senior Citizen’s Major Medical

C. Mediage

D. Medicare

Question 7

7. Which choice best describes labor laws passed during the New Deal?

A. Neutral towards unions

B. Union friendly

C. Anti-union

D. No labor laws were passed during that time period

Question 8

8. What tends to happen to earnings as a person becomes more educated?

A. Earnings stay the same.

B. Earnings increase.

C. Earnings aren’t linked to education.

D. Earnings decrease.

Question 9

9. A written summary of a person’s work and education background is known as a

A. classified report.

B. pension.

C. résumé.

D. pay stub breakdown.

Question 10

10. Comparing products according to price per ounce is an example of what shopping strategy?

A. Unit pricing

B. Price to earnings ratio

C. Ounce pricing

D. Superior shopping

Question 11

11. Prejudice would be an example of what factor affecting wages?

A. Education

B. Social attitudes

C. Government laws

D. Supply

Question 12

12. If a housing boom occurs in the United States, the demand for carpenters will likely

A. stay the same.

B. greatly decrease.

C. increase.

D. decrease.

Question 13

13. Which federal agency insures savings deposits?

A. The Consumer Product Safety Commission

B. The Securities and Exchange Commission

C. The Savings Deposit Agency

D. The Federal Deposit Insurance Corporation

Question 14

14. Which of the following ways of investing/saving is the most liquid?

A. Real estate

B. Federal bond

C. Savings account

D. Certificate of deposit

Question 15

15. Based on what you’ve read, what seems to be the overall result of government laws on wages?

A. Decreased supply of labor, lower wages

B. Increased supply of labor, lower wages

C. Reduced supply of labor, higher wages

D. Increased supply of labor, higher wages

Question 16

16. Why is it a bad idea to simply hide money in a safe place as a way to save?

A. The money will gain value over time through deflation.

B. Money disintegrates over time.

C. You’re likely to forget where the money is hidden.

D. The money will lose value over time through inflation.

Question 17

17. Which of the following is a benefit provided by the Social Security program?

A. Food stamps for poor children

B. Medical care for young, poor people

C. Payments to widows or children of workers who have died or become disabled

D. Payments to companies for the hiring of workers

Question 18

18. Using your savings to buy something you think will increase in value is known as

A. investing.

B. price comparison.

C. pension.

D. unit pricing.

Question 19

19. Which section of the economy makes up the majority of spending on goods and services?

A. Government

B. Religious organizations

C. Business

D. Consumers

Question 20

20. One disadvantage of advertising is that it

A. encourages impulse buying.

B. saves time.

C. stimulates competition.

D. provides entertainment.