Economics Exam Study Guide Questions and
Answers Solved Correctly
Which is the most effective solution when planning for retirement? - Answer Start as soon as possible to
maximize savings
The marketing mix, also known as the Four Ps of Marketing, consists of product, price, promotion, and
_[blank]_. - Answer Place
Which type of expense can change based on use or volume? - Answer Variable
Joe works full time as a carpenter and brings home $3,000 per month. He owes a total of $1,500 in fixed
expenses every month, which includes items such as rent and insurance.
If Joe had $1,000 in variable expenses such as groceries and entertainment, what would be his ending
balance? - Answer $500
What was the original purpose of savings and loan associations? - Answer a way for groups of people to
pool their money so that each member could build or buy a home
What are some advantages of using a debit card as opposed to cash? - Answer Debit cards can help
track spending carefully and accurately.
Debit cards can be replaced if they are lost.
Alan and Samuel each have a 30-year mortgage. Both mortgages were approved at the same time. Alan
pays 5 percent interest, while Samuel only pays 3.5 percent.
If Alan and Samuel are the same age and make the same amount of money, why is Alan paying more in
interest? - Answer Samuel has a better credit score, so his interest rate is lower.
, Which is an example of an unsecured revolving loan? - Answer credit card
How are whole life insurance and term life insurance different? - Answer Whole life insurance does not
expire, but term life insurance does.
What role does income tax serve for the federal government? - Answer It is the largest source of
revenue for the federal government.
Which are benefits of a mixed market economy? - Answer A mixed market economy provides a wide
variety of products and services.
A mixed market economy provides some regulation to protect consumers.
Manny wishes to sell candy bars to his classmates to earn extra money. - Answer why to produce
Why do command economies fail? - Answer People have little incentive to innovate.
The market allocates resources.
Large, slow bureaucracies form.
In a market economy, the exclusive possession or control of the supply or trade in a commodity or
service can develop, discouraging competition. - Answer monopoly
Which accurately reflect the role of government in a mixed market economy? - Answer The government
owns or partially owns some businesses.
The government requires businesses to provide truthful advertising.
Which are characteristics of the US mixed market economy? - Answer consumer sovereignty
Answers Solved Correctly
Which is the most effective solution when planning for retirement? - Answer Start as soon as possible to
maximize savings
The marketing mix, also known as the Four Ps of Marketing, consists of product, price, promotion, and
_[blank]_. - Answer Place
Which type of expense can change based on use or volume? - Answer Variable
Joe works full time as a carpenter and brings home $3,000 per month. He owes a total of $1,500 in fixed
expenses every month, which includes items such as rent and insurance.
If Joe had $1,000 in variable expenses such as groceries and entertainment, what would be his ending
balance? - Answer $500
What was the original purpose of savings and loan associations? - Answer a way for groups of people to
pool their money so that each member could build or buy a home
What are some advantages of using a debit card as opposed to cash? - Answer Debit cards can help
track spending carefully and accurately.
Debit cards can be replaced if they are lost.
Alan and Samuel each have a 30-year mortgage. Both mortgages were approved at the same time. Alan
pays 5 percent interest, while Samuel only pays 3.5 percent.
If Alan and Samuel are the same age and make the same amount of money, why is Alan paying more in
interest? - Answer Samuel has a better credit score, so his interest rate is lower.
, Which is an example of an unsecured revolving loan? - Answer credit card
How are whole life insurance and term life insurance different? - Answer Whole life insurance does not
expire, but term life insurance does.
What role does income tax serve for the federal government? - Answer It is the largest source of
revenue for the federal government.
Which are benefits of a mixed market economy? - Answer A mixed market economy provides a wide
variety of products and services.
A mixed market economy provides some regulation to protect consumers.
Manny wishes to sell candy bars to his classmates to earn extra money. - Answer why to produce
Why do command economies fail? - Answer People have little incentive to innovate.
The market allocates resources.
Large, slow bureaucracies form.
In a market economy, the exclusive possession or control of the supply or trade in a commodity or
service can develop, discouraging competition. - Answer monopoly
Which accurately reflect the role of government in a mixed market economy? - Answer The government
owns or partially owns some businesses.
The government requires businesses to provide truthful advertising.
Which are characteristics of the US mixed market economy? - Answer consumer sovereignty
