FINANCIAL LITERACY EXAM 2024 WITH 100% CORRECT ANSWERS

Economics is the study of how individuals and societies satisfy their unlimited wants with limited resources. a. True b. False - correct answer a. True When rising interest rates make borrowing more costly, how does it affect the business cycle? a. It causes consumers to consume more and increases demand. b. It lowers demand, decreases household purchases, and promotes contraction. c. It causes conflicts overseas and reduces a nation's ability to import goods. d. It increases productivity, raises employment, and leads to expansion. - correct answer b. It lowers demand, decreases household purchases, and promotes contraction. Marissa makes jewelry and sells it at local jewelry shops. She usually provides 15 pieces of jewelry per store and sells them for $10. However, she finds out that the store owners, due to popular demand, want to start selling her jewelry for $20. According to the law of supply, what will Marissa do? a. She will provide the same amount of jewelry for each store to sell. b. She will start providing more pieces of jewelry for each store to sell. c. She will start creating carvings for each store to sell along with her jewelry. d. She will start providing less pieces of jewelry for each store to sell. - correct answer b. She will start providing more pieces of jewelry for each store to sell. The Postal Service is an example of a geographic monopoly.