FBLA - Economics Exam Questions with Verified Solutions Latest Version 2025 Already Passed
Careful evaluation of alternatives is the best way to get the most from your money. (True or False) -
Answers True
The price of a product when it is new on the market is usually the highest it will ever be. (True or False) -
Answers True
The Department of Defense was the first to use the Internet. (True or False) - Answers True
Businesses do not need to supply consumers with accurate information. (True or False) - Answers False
The Right to Redress makes certain that consumers have a variety of goods and services from which to
choose. (True or False) - Answers False
A cover letter should encourage the employer to read your resume and increase your chances for
obtaining an interview. (True or False) - Answers True
If you cannot resolve problems with your job performance, it is best to resign before your employer fires
you. (True or False) - Answers True
Most young people do not qualify to use the simplest of the tax forms - 1040EZ. (True or False) -
Answers False
Employers pay twice as much social security and Medicare as their employee's share. (True or False) -
Answers False
It is financially more beneficial to save your money in a bank rather than let the government withhold
more taxes than you think you will owe for the year. (True or False) - Answers True
If you want to cut your spending, you'll have to start with your fixed expenses. (True or False) - Answers
False
The goals you set affect your family, future family, and community. (True or False) - Answers True
Banks usually send reports of your checking account activity each month describing the activity on your
account. (True or False) - Answers True
The difference in the interest charged by banks on loans and the interest paid on money deposited is the
bank's income. (True or False) - Answers True
If you invest carefully, you don't have to take risks. (True or False) - Answers False
Only what you like to do determines the vacation destination you should consider. (True or False) -
Answers False
Dieting taken to a dangerous extreme is an eating disorder that could threaten your life. (True or False) -
Answers True
,The outpatient portion of a policy covers treatment after you have been admitted to the hospital. (True
or False) - Answers False
NAFTA requires that tariffs on most goods produced and sold in North America will be gradually
increased. (True or False) - Answers False
In practice, trade is completely free. (True or False) - Answers False
A need is something that you desire to have because someone else has one. (True or False) - Answers
False
One of the problems in economics is that wants are unlimited. (True or False) - Answers True
There are only two kinds of economic resources: human and capital. (True or False) - Answers False
Labor is another name for human resources. (True or False) - Answers True
Some resources, such as clean air and water, are limited. (True or False) - Answers True
Scarcity is a problem that is faced by individuals and businesses but not by governments. (True or False)
- Answers False
Economic decision making is important to businesses and governments but not to individuals. (True or
False) - Answers False
Economic decision making is a process requiring four important steps. (True or False) - Answers False
An arrangement that allows buyers and sellers to come together to trade goods, services, and resources
is called a market. (True or False) - Answers True
Determining which of its citizens should benefit from the production of goods and services is something
each nation must decide. (True or False) - Answers True
When the government hires new employees, it is participating in the marketplace. (True or False) -
Answers True
In a system of capitalism, the government decides what will be produced with the resources available.
(True or False) - Answers False
In the private enterprise system, you may start or invest in any business as long it is not illegal to do so.
(True or False) - Answers `True
The profit motive is designed to allow lazy owners to become rich. (True or False) - Answers False
The three roles that everyone must perform are worker, consumer, and saver. (True or False) - Answers
False
,Quantity demanded means the quantity of products and services that consumers are willing and able to
buy at a particular price. (True or False) - Answers True
Quantity supplied means the quantity of a product or service that businesses are willing and able to
provide at a particular price. (True or False) - Answers True
Success in your role as a worker will affect your standard of living. (True or False) - Answers True
When you pay your taxes, you are performing your citizen role. (True or False) - Answers True
Economic growth refers to a steady increase in the production of goods and services in an economic
system. (True or False) - Answers True
There are over 120 million workers in the U.S. economy. (True or False) - Answers True
The GDP in our economy has declined steadily for the past few years. (True or False) - Answers False
Changes in the business cycle form a pattern of good times to bad times and back. (True or False) -
Answers True
Recovery in the business cycle occurs after a period of inflation. (True or False) - Answers False
The production process of getting goods to consumers usually requires only one business. (True or False)
- Answers False
A supermarket, a bank, and a utility company are all examples of businesses. (True or False) - Answers
True
Marketing involves just transporting and selling products. (True or False) - Answers False
Marketing activities add value to a product. (True or False) - Answers True
Building a specific, unique product for one customer is called processing. (True or False) - Answers False
Mass production is not the standard of U.S. manufacturing. (True or False) - Answers False
Service businesses are the fastest growing part of our economy. (True or False) - Answers True
All businesses must raise capital, use human resources, and keep records. (True or False) - Answers True
One of the eight marketing functions is risk management. (True or False) - Answers True
Consumers often have a negative or narrow view of marketing. (True or False) - Answers True
The marketing strategy is a two-step process. (True or False) - Answers True
Buying motives can be rational or emotional. (True or False) - Answers True
A wholesaler sells directly to consumers. (True or False) - Answers False
, If a company has a limited supply of a product, it may lower its price. (True or False) - Answers False
Effective personal selling includes contact with the customer after the purchase. (True or False) -
Answers True
Another term for international business is foreign or world trade. (True or False) - Answers True
Among the advantages enjoyed by the U.S. in world trade is our own production of wool and oil. (True
or False) - Answers False
It is necessary for the U.S. to import a variety of metals. (True or False) - Answers True
There are a number of challenges involved with international trade, but currency exchange rates are not
one of them. (True or False) - Answers False
A limit set on the quantity of a product that can be imported or exported is called an embargo. (True or
False) - Answers False
A balance of payments and a balance of trade are the same thing. (True or False) - Answers False
A business budget anticipates sources and amounts of income. (True or False) - Answers True
Expenses include the total revenue minus operating costs of the small business. (True or False) -
Answers False
The most important step in financial planning is developing an income statement. (True or False) -
Answers False
In a small business, the budgeting goals are much the same as in a household--to determine what the
sources of income are and how they will be distributed. (True or False) - Answers True
Budgets identify the financial plans of a business. (True or False) - Answers True
(Multiple Choice:) A purchase made on a whim without using a decision-making process is a(n) ____. -
Answers A) trade - off purchase
B) impulse purchase
C) option purchase
D) none of the above
B
Careful evaluation of alternatives is the best way to get the most from your money. (True or False) -
Answers True
The price of a product when it is new on the market is usually the highest it will ever be. (True or False) -
Answers True
The Department of Defense was the first to use the Internet. (True or False) - Answers True
Businesses do not need to supply consumers with accurate information. (True or False) - Answers False
The Right to Redress makes certain that consumers have a variety of goods and services from which to
choose. (True or False) - Answers False
A cover letter should encourage the employer to read your resume and increase your chances for
obtaining an interview. (True or False) - Answers True
If you cannot resolve problems with your job performance, it is best to resign before your employer fires
you. (True or False) - Answers True
Most young people do not qualify to use the simplest of the tax forms - 1040EZ. (True or False) -
Answers False
Employers pay twice as much social security and Medicare as their employee's share. (True or False) -
Answers False
It is financially more beneficial to save your money in a bank rather than let the government withhold
more taxes than you think you will owe for the year. (True or False) - Answers True
If you want to cut your spending, you'll have to start with your fixed expenses. (True or False) - Answers
False
The goals you set affect your family, future family, and community. (True or False) - Answers True
Banks usually send reports of your checking account activity each month describing the activity on your
account. (True or False) - Answers True
The difference in the interest charged by banks on loans and the interest paid on money deposited is the
bank's income. (True or False) - Answers True
If you invest carefully, you don't have to take risks. (True or False) - Answers False
Only what you like to do determines the vacation destination you should consider. (True or False) -
Answers False
Dieting taken to a dangerous extreme is an eating disorder that could threaten your life. (True or False) -
Answers True
,The outpatient portion of a policy covers treatment after you have been admitted to the hospital. (True
or False) - Answers False
NAFTA requires that tariffs on most goods produced and sold in North America will be gradually
increased. (True or False) - Answers False
In practice, trade is completely free. (True or False) - Answers False
A need is something that you desire to have because someone else has one. (True or False) - Answers
False
One of the problems in economics is that wants are unlimited. (True or False) - Answers True
There are only two kinds of economic resources: human and capital. (True or False) - Answers False
Labor is another name for human resources. (True or False) - Answers True
Some resources, such as clean air and water, are limited. (True or False) - Answers True
Scarcity is a problem that is faced by individuals and businesses but not by governments. (True or False)
- Answers False
Economic decision making is important to businesses and governments but not to individuals. (True or
False) - Answers False
Economic decision making is a process requiring four important steps. (True or False) - Answers False
An arrangement that allows buyers and sellers to come together to trade goods, services, and resources
is called a market. (True or False) - Answers True
Determining which of its citizens should benefit from the production of goods and services is something
each nation must decide. (True or False) - Answers True
When the government hires new employees, it is participating in the marketplace. (True or False) -
Answers True
In a system of capitalism, the government decides what will be produced with the resources available.
(True or False) - Answers False
In the private enterprise system, you may start or invest in any business as long it is not illegal to do so.
(True or False) - Answers `True
The profit motive is designed to allow lazy owners to become rich. (True or False) - Answers False
The three roles that everyone must perform are worker, consumer, and saver. (True or False) - Answers
False
,Quantity demanded means the quantity of products and services that consumers are willing and able to
buy at a particular price. (True or False) - Answers True
Quantity supplied means the quantity of a product or service that businesses are willing and able to
provide at a particular price. (True or False) - Answers True
Success in your role as a worker will affect your standard of living. (True or False) - Answers True
When you pay your taxes, you are performing your citizen role. (True or False) - Answers True
Economic growth refers to a steady increase in the production of goods and services in an economic
system. (True or False) - Answers True
There are over 120 million workers in the U.S. economy. (True or False) - Answers True
The GDP in our economy has declined steadily for the past few years. (True or False) - Answers False
Changes in the business cycle form a pattern of good times to bad times and back. (True or False) -
Answers True
Recovery in the business cycle occurs after a period of inflation. (True or False) - Answers False
The production process of getting goods to consumers usually requires only one business. (True or False)
- Answers False
A supermarket, a bank, and a utility company are all examples of businesses. (True or False) - Answers
True
Marketing involves just transporting and selling products. (True or False) - Answers False
Marketing activities add value to a product. (True or False) - Answers True
Building a specific, unique product for one customer is called processing. (True or False) - Answers False
Mass production is not the standard of U.S. manufacturing. (True or False) - Answers False
Service businesses are the fastest growing part of our economy. (True or False) - Answers True
All businesses must raise capital, use human resources, and keep records. (True or False) - Answers True
One of the eight marketing functions is risk management. (True or False) - Answers True
Consumers often have a negative or narrow view of marketing. (True or False) - Answers True
The marketing strategy is a two-step process. (True or False) - Answers True
Buying motives can be rational or emotional. (True or False) - Answers True
A wholesaler sells directly to consumers. (True or False) - Answers False
, If a company has a limited supply of a product, it may lower its price. (True or False) - Answers False
Effective personal selling includes contact with the customer after the purchase. (True or False) -
Answers True
Another term for international business is foreign or world trade. (True or False) - Answers True
Among the advantages enjoyed by the U.S. in world trade is our own production of wool and oil. (True
or False) - Answers False
It is necessary for the U.S. to import a variety of metals. (True or False) - Answers True
There are a number of challenges involved with international trade, but currency exchange rates are not
one of them. (True or False) - Answers False
A limit set on the quantity of a product that can be imported or exported is called an embargo. (True or
False) - Answers False
A balance of payments and a balance of trade are the same thing. (True or False) - Answers False
A business budget anticipates sources and amounts of income. (True or False) - Answers True
Expenses include the total revenue minus operating costs of the small business. (True or False) -
Answers False
The most important step in financial planning is developing an income statement. (True or False) -
Answers False
In a small business, the budgeting goals are much the same as in a household--to determine what the
sources of income are and how they will be distributed. (True or False) - Answers True
Budgets identify the financial plans of a business. (True or False) - Answers True
(Multiple Choice:) A purchase made on a whim without using a decision-making process is a(n) ____. -
Answers A) trade - off purchase
B) impulse purchase
C) option purchase
D) none of the above
B
