Consumer Economics
Solved Exam Questions
Course Introduction
Consumer Economics explores the decision-making processes of individuals and households as they manage resources and make purchases in the marketplace. This course examines the factors that influence consumer behavior, including economic principles, psychological motivations, social dynamics, and public policy. Topics include budgeting, credit and debt management, saving and investing, consumer rights and responsibilities, advertising, and the impact of consumer choices on the wider economy. By analyzing real-world scenarios and case studies, students develop practical skills for making informed financial decisions and understanding the broader economic environment in which consumers operate.
Recommended Textbook
Personal Finance 12th Edition by Jack Kapoor
Available Study Resources on Quizplus
19 Chapters
2585 Verified Questions
2585 Flashcards
Source URL: https://quizplus.com/study-set/2651
Page 2
Chapter 1: Personal Finance Basics and the Time Value of Money
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/52891
Sample Questions
Q1) Using the services of financial institutions will be most evident in your effort to:
A)develop financial goals.
B)review and revise your financial plan.
C)Determine your current financial situation.
D)evaluate your alternatives.
E)create a financial action plan.
Answer: D
Q2) One aspect of financial planning is to make wise decisions using a plan as to what to purchase and when to purchase it.Which aspect of financial planning does this deal with?
A)Borrowing
B)Spending
C)Managing Risk
D)Investing
E)Retirement and Estate Planning
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Financial Aspects of Career Planning
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/52890
Sample Questions
Q1) Functional resumes emphasize a person's skills and abilities in categories such as communications,research,and human relations.
A)True
B)False
Answer: True
Q2) The purpose of a screening interview is to:
A)make business contacts.
B)reduce the number of applicants for a job.
C)locate potential people for advancement within the company.
D)judge the best qualified candidates for a position.
E)obtain information on available jobs in an area.
Answer: B
Q3) A ____________ resume is designed to obtain a specific job.
A)functional
B)chronological
C)goal-oriented
D)targeted
E)data
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Money Management Strategy: Financial
Statements and Budgeting
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/52889
Sample Questions
Q1) Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?
A)Home file cabinet
B)Safe deposit box
C)Personal computer
D)Best friend's house
E)None of these
Answer: B
Q2) The Hernandez family budgets $420 a month for food.Last month they spent $413,which creates a:
A)budget surplus of $7.
B)budget deficit of $7.
C)budget surplus of $420.
D)budget deficit of $413.
E)balanced budget.
Answer: A
Q3) A personal balance sheet reports your income and expenses.
A)True
B)False
Answer: False
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Planning Your Tax Strategy
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/52888
Sample Questions
Q1) Which of the following good or service is subject to an excise tax?
A)Gasoline
B)Tires
C)Cigarettes
D)Air travel
E)All of these
Q2) A state may impose a personal property tax.
A)True
B)False
Q3) Earned income is money received from:
A)dividends.
B)interest.
C)wages.
D)rent from investments.
E)All of these
Q4) What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?
Q5) When planning to use a tax preparation service,what factors should be considered?
Q6) How is taxable income computed?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Financial Services: Savings Plans and Payment Accounts
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/52887
Sample
Questions
Q1) A savings account earns 4 percent.If the saver is in a 28 percent tax bracket,the after-tax savings rate of return would be ____percent.
A)28.00
B)16.72
C)4.00
D)2.88
E)1.12
Q2) What is the rate that the Federal Reserve banks charge financial institutions for loans called?
A)Prime rate
B)Discount rate
C)Mortgage rate
D)Treasury bond rate
E)Corporate bond rate
Q3) A _______ endorsement is especially useful when you are depositing checks.
A)blank
B)restrictive
C)common
D)special
E)documented
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Introduction to Consumer Credit
Available Study Resources on Quizplus for this Chatper
185 Verified Questions
185 Flashcards
Source URL: https://quizplus.com/quiz/52886
Sample Questions
Q1) Which of the following are most vulnerable to misusing credit?
A)Married couples
B)Shopaholics and young adults
C)Retired adults
D)Savers
E)None of the above
Q2) Closed-end credit is used for a specific purpose and involves a specified amount.
A)True
B)False
Q3) If you have a complaint about consumer credit,you should first:
A)try to solve your problem directly with the creditor.
B)contact your attorney.
C)file a complaint with the Better Business Bureau.
D)report it to the state consumer protection agency.
E)complain to the Federal Reserve Bank in your district.
Q4) What does it mean when a credit card is co-branded?
Q5) Credit,when effectively used,can help you have more and enjoy more.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Choosing a Source of Credit: The Costs of Credit
Alternatives
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/52885
Sample Questions
Q1) Which one of the following is often the source of the least expensive loan?
A)Parents or family members
B)Banks
C)Savings and loan associations
D)Finance companies
E)Loan sharks
Q2) Steve Black has two children.He is buying each of them their own TV to put in their rooms so they do not have to join the rest of the family and watch TV together.Which one of the following best explains Gary's spending,which can lead to overindebtedness?
A)Misunderstanding or lack of communication
B)The use of money to punish
C)The expectation of instant comfort
D)Keeping up with the Joneses
E)Overindulgence of children
Q3) The annual percentage rate is the percentage cost (or relative cost)of credit on a yearly basis.
A)True
B)False
Q4) Explain the two choices available in declaring personal bankruptcy.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Consumer Purchasing Strategies and Legal Protection
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/52884
Sample Questions
Q1) Federal Trade Commission regulations require that:
A)all used cars be sold with a warranty.
B)used car buyers be informed of whether or not the vehicle comes with a warranty.
C)used cars with over 100,000 miles be sold only by the individual owner, not by a dealer.
D)major repairs must be made on all used cars prior to being offered for sale.
E)the seller of a defective used car pay half the cost of the required repairs.
Q2) Howard Ramsell recently became aware of implied warranties that exist for consumer purchases.An implied warranty exists as a result of:
A)a stated intent of the seller.
B)actions by consumers.
C)the intended use of a product.
D)rulings of federal consumer agencies.
E)a written statement from the manufacturer.
Q3) One way to gather information about a product is to use an independent testing organization like Consumers Union.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: The Housing Decision: Factors and Finances
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/52883
Sample Questions
Q1) Which one of the following is an advantage of buying?
A)Ease of Mobility
B)Financial benefits
C)Fewer responsibilities
D)Minimal financial commitment
E)Declining equity
Q2) Which of the following is an example of a conventional mortgage?
A)An FHA mortgage
B)A buy-down
C)A fixed-rate mortgage
D)A shared-appreciation mortgage
E)A home equity loan
Q3) If you sell your home without a real estate agent,you should still employ the services of a _____ to assist you with the contract and the closing.
A)broker.
B)insurance agent.
C)lawyer.
D)contractor.
E)rental agent.
Q4) Explain negative amortization and how such a situation can occur.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Property and Motor Vehicle Insurance
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/52882
Sample Questions
Q1) Your home insurance policy has a $250 deductible.If a small fire causes $600 damage to your home,what amount of the claim would the insurance company pay?
A)$250
B)$350
C)$450
D)$600
E)Not able to determine from this information
Q2) Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?
A)Financial advisor
B)Futo manufacturer
C)Homeowner
D)Policyholder
E)Insurance company
Q3) What coverages are commonly included in a homeowner's insurance policy?
Q4) Personal belongings that have a high value can be protected with a personal property floater.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Health, Disability, and Long-Term Care Insurance
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/52881
Sample Questions
Q1) Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.
A)True
B)False
Q2) Which of the following is an innovative way concerned groups are containing health care costs?
A)Incentives to encourage preventive care
B)Encouragement of prepaid group practices
C)Establishment of community health education programs
D)Encouragement by doctors to pay cash for routine medical care
E)All of these
Q3) Which provision in a health insurance policy states that you will pay a flat dollar amount each time you receive a covered medical service?
A)Daily benefit
B)Benefit period
C)Policy limit
D)Elimination period
E)Copayment
Q4) Identify the sources of health care insurance.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Life Insurance
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/52880
Sample Questions
Q1) You probably have little or no need for life insurance if you are:
A)a single person living with your parents.
B)divorced and have two children.
C)married and your spouse works.
D)gainfully employed.
E)a two-earner household with a mortgage.
Q2) One important feature of a whole life policy is the nonforfeiture clause,which prevents the forfeiture of accrued benefits if you choose to drop the policy.
A)True
B)False
Q3) Term insurance is protection for a specified period of time,usually 1,5,10,or 20 years.
A)True
B)False
Q4) Life insurance is one of the most important and expensive purchases you may ever make.
A)True
B)False
Q5) What is life insurance? What is its purpose and principle?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Investing Fundamentals
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/52879
Sample Questions
Q1) Which type of risk affects only a specific company or a specific industry?
A)Interest rate
B)Systematic
C)Unsystematic
D)Economic
E)Inflation
Q2) Which of the following types of investment information can be found on the Internet?
A)Interest rates for certificates of deposit
B)Current price information for stocks, bonds, and mutual funds
C)Broker's buy and sell recommendations
D)Financial calculators
E)All of these
Q3) Which newspaper is one of the most readily available sources of information for the average investor?
A)The Wall Street Journal
B)Government publications
C)Corporate reports
D)www.google.com
E)www.yahoo.com
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Investing in Stock
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/52878
Sample Questions
Q1) If a stock has a 2-for-1 split:
A)the value of the stock is guaranteed to increase.
B)the value of the stock is guaranteed to decrease.
C)total market capitalization increases.
D)total market capitalization decreases.
E)total market capitalization does not change.
Q2) Beverly Frickel purchased 100 shares of Gleason Systems stock for $42.50 per share.Her commission for this purchase was $35.She sold the stock two years later for $55 per share and a commission of $50.What was Beverly's total dollar return on this stock?
A)$1,250
B)$1,165
C)$1,500
D)$1,315
E)$1,400
Q3) The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Investing in Bonds
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/52877
Sample Questions
Q1) A call feature:
A)allows bondholders to convert their bond to a specified number of shares of common stock.
B)is not available on corporate bonds.
C)allows the corporation to buy outstanding bonds from current bondholders before the maturity date.
D)is only available with government securities.
E)is guaranteed by the corporation.
Q2) A corporate bond is a corporation's written pledge that it will repay a specified amount of money with interest.
A)True
B)False
Q3) If comparable bonds are paying 8 percent and the approximate market value of a $1,000 bond is $750,then what is the annual interest on the bond?
A)$30
B)$60
C)$75
D)$80
E)$100
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Investing in Mutual Funds
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/52876
Sample Questions
Q1) What percent of mutual funds receive a 5-star rating from Morningstar?
A)5
B)10
C)15
D)20
E)25
Q2) A load fund is a mutual fund in which investors pay a commission either when they purchase or when they redeem shares.
A)True
B)False
Q3) The typical expense ratio for an index fund is:
A)0.50 percent or less.
B)between 0.50 and 1 percent.
C)between 1 and 2 percent.
D)between 2 and 3 percent.
E)over 5 percent.
Q4) When you invest in Class A shares,you pay a sales commission when you sell your mutual fund shares.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Investing in Real Estate and Other Investment
Alternatives
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/52875
Sample Questions
Q1) Investments in silver,platinum,palladium,and rhodium are not used as a hedge against inflation.
A)True B)False
Q2) Easing of international tensions or disinflation causes a decline in gold prices. A)True B)False
Q3) General partners in a real estate investment venture have liability for _____financial losses.
A)none of the B)all of the C)some of the D)only exceptional E)implied
Q4) There are three types of REITs: equity REITs,mortgage REITs,and hybrid REITs. A)True B)False
Q5) Explain what factors drive up gold prices and what factors decrease gold prices.
Q6) Explain the relationship between real estate syndicates and REITs.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Starting Early: Retirement Planning
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/52874
Sample Questions
Q1) The EGTRRA was passed by Congress in 2001 and increased the employee annual contribution limit for employer-sponsored retirement plans.
A)True
B)False
Q2) Your Social Security payments will start at age 65 whether you apply for benefits or not.
A)True
B)False
Q3) You can borrow from your Roth IRA.
A)True
B)False
Q4) What is most likely to be an individual's single biggest asset?
A)Automobile
B)Jewelry
C)Bank account
D)Home
E)Furniture
Q5) ERISA established the Pension Benefit Guaranty Corporation.
A)True
B)False
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Estate Planning
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/52873
Sample Questions
Q1) A beneficiary is a person who has been named to receive property under the will.
A)True
B)False
Q2) Which of the following would keep you from being an executor of a will?
A)Having been convicted of a felony
B)Being over 70 years of age
C)Being married
D)Being a coworker of the deceased
E)Being a child of the deceased
Q3) If you die intestate,the state's law of descent and distribution becomes your will.
A)True
B)False
Q4) Which of the following are rules to remember when writing a will?
A)In most states, you must be 18 years of age or older.
B)A will must be written in sound judgment and mental capacity to be valid.
C)The document must clearly state that it is your will.
D)The will must name an executor.
E)All of these are rules to remember.
Q5) How do wills and trusts help in planning your estate?
To view all questions and flashcards with answers, click on the resource link above. Page 21