Epf Semester Final Exam
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What is scarcity?
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The act of being afraid
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The excess of a product that hasn't been sold yet
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The inability to satisfy the unlimited wants and needs of people
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The correct amount of goods and services that consumers want and need
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The EPF Semester Final EXAM assesses key economic concepts like scarcity, marginal analysis, factors of production, and consumer sovereignty. This exam evaluates understanding of foundational economic principles, crucial for students specializing in economics.
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- 2.
Marginal Cost >< Marginal Benefit *** marginal cost is the value one places (assigns) on a good or service and marginal benefit is the expense that one pays
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True
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False
Correct Answer
A. FalseExplanation
marginal cost = expense paid out, marginal benefit = value gained or receivedRate this question:
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- 3.
What are the four factors of production?
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Liability, labor, ingenuity and resources
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Land, consequence, capital and entrepreneurship
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Labor, money, people and vision
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Land, labor, capital and entrepreneurship
Correct Answer
A. Land, labor, capital and entrepreneurshipExplanation
The four factors of production are land, labor, capital, and entrepreneurship. Land refers to all natural resources, such as land itself, minerals, and water. Labor refers to the physical and mental efforts of individuals involved in production. Capital refers to the tools, machinery, and infrastructure used in production. Entrepreneurship refers to the ability to organize and manage the other factors of production to create goods and services. This combination of factors is essential for the production of goods and services in an economy.Rate this question:
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- 4.
Adam Smith was an ____________________________...
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English philosopher, author and economist
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English philosopher, scientist and economist
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Scottish philosopher, author and economist
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Scottish philosopher, scientist and economist
Correct Answer
A. Scottish philosopher, author and economistExplanation
The correct answer is Scottish philosopher, author and economist. Adam Smith was a Scottish philosopher who is widely regarded as the father of modern economics. He was also an author, known for his influential book "The Wealth of Nations," which laid the foundation for classical economics. Smith's work revolutionized the understanding of economic theory and is still highly regarded today.Rate this question:
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- 5.
A method used to change a behavior is called _______________...
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Incentive
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Bargain
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Trade
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Investment
Correct Answer
A. IncentiveExplanation
An incentive is a method used to change behavior by offering a reward or benefit that motivates individuals to act in a certain way. It can be in the form of monetary rewards, recognition, or other desirable outcomes. Incentives are commonly used in various settings, such as workplaces, schools, and marketing campaigns, to encourage people to adopt new behaviors or modify existing ones. By providing an incentive, individuals are more likely to be motivated and engaged in the desired behavior change.Rate this question:
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- 6.
Consumer sovereignty means having political control?
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True
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False
Correct Answer
A. FalseExplanation
consumer sovereignty = the consumer controls the output of production of goods and servicesRate this question:
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- 7.
Cost & Price *** cost is the amount a ___________ pays and price is the amount a _____________ pays.
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Distributor, producer
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Consumer, buyer
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Inventor, buyer
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Producer, consumer
Correct Answer
A. Producer, consumerExplanation
The correct answer is producer, consumer. In this context, the term "cost" refers to the amount that a producer pays to produce a product or service. On the other hand, "price" refers to the amount that a consumer pays to purchase that product or service from the producer.Rate this question:
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- 8.
The Gross Domestic Product [GDP] of the United States includes the sale of goods sold in the United States?
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True
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False
Correct Answer
A. FalseExplanation
GDP of the United States only includes the goods that were MADE or PRODUCED in the United StatesRate this question:
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- 9.
In economics, ______________ is time sensitive.
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Sales
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Demand
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Profit
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Supply
Correct Answer
A. SupplyExplanation
In economics, supply is time sensitive because it refers to the quantity of goods or services that producers are willing and able to provide at a given price and time. Supply can change over time due to various factors such as changes in production costs, technology, or market conditions. Therefore, it is important for economists and businesses to consider the time element when analyzing and forecasting supply in order to make informed decisions and respond effectively to market changes.Rate this question:
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- 10.
When the demand in market is the same as the supply in market, market ______________exists.
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Equilibrium
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Flux
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Excess
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Production
Correct Answer
A. EquilibriumExplanation
When the demand in the market is the same as the supply in the market, market equilibrium exists. This means that the quantity of goods or services demanded by consumers is equal to the quantity supplied by producers. In this state, there is no shortage or surplus of goods, and prices tend to stabilize. Market equilibrium is a key concept in economics and indicates a balance between supply and demand.Rate this question:
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- 11.
Elasticity is NOT found in which of the following?
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Resume original form
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Ability to expand
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Sensitive to change
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Rigid in form
Correct Answer
A. Rigid in formExplanation
Elasticity refers to the ability of a material or object to deform under stress and then return to its original shape once the stress is removed. It is characterized by the ability to expand and its sensitivity to change. However, something that is "rigid in form" does not possess elasticity because it does not have the ability to deform or change shape under stress.Rate this question:
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- 12.
The government regulates the economy by enforcing price controls, these are called price ______________ and price ________________.
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Limits, limitations
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Floors, ceilings
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Gauging, fixing
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Increases, decreases
Correct Answer
A. Floors, ceilingsExplanation
The government regulates the economy by enforcing price controls, specifically price floors and price ceilings. A price floor is a minimum price set by the government to prevent a price from falling below a certain level, while a price ceiling is a maximum price set by the government to prevent a price from rising above a certain level. These measures are used to maintain stability in the market and protect consumers and producers from extreme price fluctuations.Rate this question:
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- 13.
A person can improve his/her human capital through hard work and education?
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True
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False
Correct Answer
A. TrueExplanation
By engaging in hard work and pursuing education, individuals can enhance their human capital. Hard work allows individuals to develop valuable skills, gain experience, and demonstrate dedication and commitment. Education provides knowledge, expertise, and specialized training, which can further enhance an individual's human capital. By continuously improving their skills and knowledge through hard work and education, individuals can increase their value in the job market, improve their career prospects, and ultimately achieve personal and professional growth.Rate this question:
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- 14.
The formula for profit is _______________________...
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Sales + cost = profit loss/gain
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Price + cost = profit loss/gain
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Revenue - cost = profit loss/gain
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Resale- price = profit loss/gain
Correct Answer
A. Revenue - cost = profit loss/gainExplanation
The formula for profit is revenue minus cost. This equation represents the basic calculation for determining profit or loss in a business. Revenue refers to the total income generated from sales, while cost represents the expenses incurred in producing or acquiring the goods or services. Subtracting the cost from the revenue gives the net profit or loss, indicating whether the business has made a profit or incurred a loss.Rate this question:
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- 15.
The four phases of a business cycle includes all EXCEPT:
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Production
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Expansion
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Contraction
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Peak
Correct Answer
A. ProductionExplanation
The given answer is "production." This is because "production" is not one of the four phases of a business cycle. The four phases are expansion, contraction, peak, and trough. Production is a process within the phases, but it is not considered a distinct phase itself.Rate this question:
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- 16.
What is the difference between a job and a career?
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Jobs are better than careers
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Careers are easier than jobs
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Careers provide funds to meet an individual's needs while jobs are considered more important
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Jobs provide income to meet basic needs while careers are considered professions
Correct Answer
A. Jobs provide income to meet basic needs while careers are considered professionsExplanation
The difference between a job and a career lies in their nature and purpose. A job is typically seen as a means to earn income to meet basic needs, such as food, shelter, and clothing. It is often temporary and may not require specialized skills or long-term commitment. On the other hand, a career is a chosen profession that provides not only income but also personal growth, advancement opportunities, and job satisfaction. A career is usually a long-term commitment that requires specialized skills, education, and dedication to excel in a particular field. Therefore, jobs are more focused on meeting basic needs, while careers are considered as professions that offer growth and fulfillment.Rate this question:
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- 17.
Furthering your education can result in a higher paying position?
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True
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False
Correct Answer
A. TrueExplanation
Furthering your education can lead to acquiring new skills and knowledge that are valued in the job market. This can make you a more competitive candidate for higher-paying positions. Additionally, higher education often opens doors to opportunities for career advancement and promotion, which can come with increased salary and benefits. Therefore, it is likely that pursuing further education can result in a higher paying position.Rate this question:
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- 18.
Which of the following is NOT an example of a pay deduction?
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Federal tax
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State tax
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United states tax
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Social security tax
Correct Answer
A. United states taxExplanation
The United States tax is not an example of a pay deduction because it does not directly deduct from an individual's paycheck. Federal tax, state tax, and social security tax are all examples of pay deductions where a certain percentage of an individual's income is deducted to fulfill tax obligations. However, the United States tax refers to the overall tax system in the country and does not directly deduct from an individual's pay.Rate this question:
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- 19.
A goal is a statement about what a person wants to be or do and is attained by taking certain positive steps to achieve it?
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True
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False
Correct Answer
A. TrueExplanation
A goal is a desired outcome or achievement that a person aims for. It is a statement that defines what the person wants to be or do. To attain a goal, one needs to take positive steps or actions towards achieving it. Therefore, the statement that a goal is attained by taking certain positive steps to achieve it is true.Rate this question:
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- 20.
A rate of return is how fast money grows based on a principal investment or saving account?
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True
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False
Correct Answer
A. TrueExplanation
A rate of return is indeed a measure of how fast money grows based on a principal investment or savings account. It is a percentage that represents the gain or loss on an investment relative to the initial amount invested. A higher rate of return indicates faster growth of money, while a lower rate of return suggests slower growth. Therefore, the statement "True" accurately describes the relationship between rate of return and the growth of money.Rate this question:
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- 21.
Buying stocks allows you to...
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Become the CEO of a company
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Own a part of the company
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Donate money to companies
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Create a savings account in a company
Correct Answer
A. Own a part of the companyExplanation
Buying stocks allows you to own a part of the company. When you buy stocks, you are essentially purchasing shares in the company, which gives you ownership rights and a claim on the company's assets and profits. As a shareholder, you have the potential to benefit from the company's success through dividends and capital appreciation. However, owning stocks does not make you the CEO of the company, donate money to companies, or create a savings account in a company.Rate this question:
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- 22.
Which of the following is true about cards?
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They are convenient for making purchases
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They promote impulse spending
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All of the above
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None of the above
Correct Answer
A. All of the aboveExplanation
Cards are convenient for making purchases because they eliminate the need for carrying cash and provide a secure and easy way to pay for goods and services. Additionally, cards promote impulse spending as they allow individuals to make quick and easy purchases without physically handing over money, leading to potentially impulsive buying decisions. Therefore, both statements are true, making the correct answer "all of the above".Rate this question:
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- 23.
What happens if you do not pay your credit card bill by the due date?
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You pay late fees
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You are suspended from using your credit card
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Your credit card is revoked
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Nothing as long as you pay by the next due date
Correct Answer
A. You pay late feesExplanation
If you do not pay your credit card bill by the due date, you will have to pay late fees. This is a penalty charged by the credit card company for not making the payment on time. Late fees can vary depending on the credit card issuer and the amount of the outstanding balance. It is important to pay your credit card bill on time to avoid incurring these additional charges.Rate this question:
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- 24.
A buyer's [credit purchase] payment is NOT sent to the seller until the merchandise is received by the buyer for online transactions?
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True
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False
Correct Answer
A. FalseExplanation
the money is transferred IMMEDIATELY AS THE TRANSACTION IS CONDUCTED and the buyer becomes responsible to pay for the purchase BEFORE ever receiving the itemRate this question:
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- 25.
_____________insurance protects you hen others are injured due to something you did or didn't do BUT are responsible for?
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Convenient
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Comprehensive
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Liability
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Progressive
Correct Answer
A. LiabilityExplanation
Liability insurance protects you when others are injured due to something you did or didn't do but are responsible for. This type of insurance provides coverage for legal costs and damages that may arise from accidents or incidents where you are at fault. It helps protect your assets and provides financial support in case you are sued for causing harm to others.Rate this question:
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- 26.
The fee paid for insurance protection is called...
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Premium
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Deductible
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Claim
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Interest rate
Correct Answer
A. PremiumExplanation
The fee paid for insurance protection is called a premium. This is the amount of money that policyholders pay to their insurance company in exchange for coverage. The premium can be paid monthly, quarterly, annually, or in other agreed-upon intervals. It is determined based on factors such as the type of insurance, the coverage amount, the insured's risk profile, and the insurance company's expenses and profit margin. The premium is essential for the insurance company to cover potential claims and operating costs while generating revenue.Rate this question:
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- 27.
All donations can be deducted (claimed) on your taxes?
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True
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False
Correct Answer
A. FalseExplanation
only IRS acceptable donations can be claimed AND there is a limit - requires documentation to claimRate this question:
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- 28.
Which of the following is most likely to become the victim identity theft?
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Older women
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Older men
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Younger adults
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Middle-age adults
Correct Answer
A. Younger adultsExplanation
Younger adults are more likely to become victims of identity theft because they tend to be more active online and may not have developed strong security habits. They are also more likely to share personal information on social media platforms and may be less cautious when it comes to protecting their personal information. Additionally, younger adults may have limited financial experience and may not be as vigilant in monitoring their accounts for suspicious activity.Rate this question:
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Aug 14, 2024Quiz Edited by
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Dec 26, 2016Quiz Created by
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