Edmentum Personal Finance Course
EXAM 2026 Questions and Answers
What is the economic term used for sustained increase in the price of goods and
services?
A. inflation
B. depression
C. recession
D. deflation - Correct answer-A. inflation
What is Nick causing?
Nick has set up his steel factory near a community lake. The waste from his factory
is directly thrown in the lake and is causing the death of the fishes in the lake. This
is an example of a negative _______. - Correct answer-externality
There are many food carts near Mark's university. Mark and his friends regularly
buy hot dogs from Jeff's cart. Recently, Andrea opened a business selling two-for-
one hamburgers near Jeff's cart. What will be the effect on Jeff's hot dog cart?
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,A. demand for his hot dogs will increase
B. supply of for his hot dogs will decrease
C. supply of his hot dogs will increase
D. demand for his hotdogs will decrease - Correct answer-D.
demand for his hotdogs will decrease
Elena wants to open a Chinese restaurant near a university. She has the required
capital to start her restaurant. However, she is unable to find good chefs for her
restaurant. Which type of resource is Elena lacking?
A. natural
B. human
C. capital
D. entrepreneurship - Correct answer-B. human
What is brand awareness?
A. how much potential consumers like a particular brand over another
B. how willing a consumer is to purchase a specific brand
C. how well a brand is recognized by potential customers
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, D. how well a brand is doing in comparison to its competitors - Correct answer-C.
how well a brand is recognized by potential customers
Which two of the following are benefits of consumer programs?
They help prosecute companies that sell unsafe products to consumers.
They are funded by taxpayers, not by consumers.
They help maintain industry standards by issuing professional licenses.
They help consumers identify the best product reviews from various sources. -
Correct answer-They help prosecute companies that sell unsafe products to
consumers.
They help maintain industry standards by issuing professional licenses.
A fast food chain that wants to inform consumers about its latest dollar menu item
will most likely use _____ to do so.
_____ may inform consumers about other people's opinions on the newest dollar
menu item. - Correct answer-A fast food chain that wants to inform consumers
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
EXAM 2026 Questions and Answers
What is the economic term used for sustained increase in the price of goods and
services?
A. inflation
B. depression
C. recession
D. deflation - Correct answer-A. inflation
What is Nick causing?
Nick has set up his steel factory near a community lake. The waste from his factory
is directly thrown in the lake and is causing the death of the fishes in the lake. This
is an example of a negative _______. - Correct answer-externality
There are many food carts near Mark's university. Mark and his friends regularly
buy hot dogs from Jeff's cart. Recently, Andrea opened a business selling two-for-
one hamburgers near Jeff's cart. What will be the effect on Jeff's hot dog cart?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,A. demand for his hot dogs will increase
B. supply of for his hot dogs will decrease
C. supply of his hot dogs will increase
D. demand for his hotdogs will decrease - Correct answer-D.
demand for his hotdogs will decrease
Elena wants to open a Chinese restaurant near a university. She has the required
capital to start her restaurant. However, she is unable to find good chefs for her
restaurant. Which type of resource is Elena lacking?
A. natural
B. human
C. capital
D. entrepreneurship - Correct answer-B. human
What is brand awareness?
A. how much potential consumers like a particular brand over another
B. how willing a consumer is to purchase a specific brand
C. how well a brand is recognized by potential customers
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, D. how well a brand is doing in comparison to its competitors - Correct answer-C.
how well a brand is recognized by potential customers
Which two of the following are benefits of consumer programs?
They help prosecute companies that sell unsafe products to consumers.
They are funded by taxpayers, not by consumers.
They help maintain industry standards by issuing professional licenses.
They help consumers identify the best product reviews from various sources. -
Correct answer-They help prosecute companies that sell unsafe products to
consumers.
They help maintain industry standards by issuing professional licenses.
A fast food chain that wants to inform consumers about its latest dollar menu item
will most likely use _____ to do so.
_____ may inform consumers about other people's opinions on the newest dollar
menu item. - Correct answer-A fast food chain that wants to inform consumers
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
