Personal Finance Study Questions Section 1

Study Questions 1

Instructions

Answer the questions for each lesson on the same day that you read the lesson. Save the file before closing it each day. Then turn in your answers to the study questions at the end of the section. Review Lesson 4 of the Course Overview for instructions about turning in your study questions.

Section 1 Study Questions (9.0 points)

Answer each question fully. Complete sentences are not necessary.

Lesson 1 (3.0 points)

1. Name at least two things financial planning could help you do. (0.5 points)

Help you make goals, manage spending, and organize and keep track of income

2. What is trade? (0.5 points)

Buying and selling goods or services

3. What is a service? (0.5 points)

something that someone can do for other people, such as music lessons

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

Unit of account

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

Its categorized differently depending on where you live in the U.S.

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

gross domestic product

Lesson 2 (3.0 points)

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

Free competition, prices determined by supply and demand

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

little government interference, private ownership of businesses and companies

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)

4. What is a monopoly? (0.5 points)

5. What is a motive? (0.5 points)

a reason for doing something

Lesson 3 (3.0 points)

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

2. What does the Law of Demand say? (0.5 points)

3. What does the Law of Supply say? (0.5 points)

4. What is