Personal Finance: Study Questions (Section 1)

Personal Finance: Study Questions (Section 1)

Lesson 1 (3.0 points)

1. Name at least two things financial planning could help you do. (0.5 points)
1# Prepare for retirement
2# Save money for your child’s college fund.

2. What is trade? (0.5 points)
1# The exchange of things of value.

3. What is a service? (0.5 points)
1# Something of value that a person can do for other people.

4. Name one of the three functions of money. (0.5 points)

1#Medium of exchange
2# Unit of account
3#Store of value

5. The real estate market is categorized in which way? (0.5 points)

1#Location
2#Commidity

6. What is a country’s GDP? (0.5 points)

1# Gross Domestic Product

Lesson 2 (3.0 points)

1. What is a market economy? (0.5 points)

1# Regulated by the interactions between producers and consumers in the market.

2. Name at least two features of capitalism. (1.0 points)

1# Mostly a free market, has some government regulation, monopolies are illegal.

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)
1# Direct
2# Price comp

4. What is a monopoly? (0.5 points)
1#When one company controls an entire area of goods or services.

5. What is a motive? (0.5 points)

1# A reason for doing something.

Lesson 3 (3.0 points)

1. What is land as a factor of production? (0.5 points)

1# Everything that wasn’t created by people.

2. What does the Law of Demand say? (0.5 points) 1#The price of a product is determined by the supply and demand of the good

3. What does the Law of Supply say? (0.5 points)
1#If prices will go up supply increases and supply will decrease if the price goes down

4. What is elasticity? (0.5 points)
1#How much the price of a product affects the demand.

5. What