Unit 1 Evaluation

Personal Finance
BUSH 033 060

This evaluation will cover the lessons in this unit. It is open book, meaning you can use your
textbook, course content, and other course materials. To submit the evaluation by mail, follow the
directions on your Enrollment Information Sheet. To take the evaluation online, access the online
version of your course; use the navigation panel to access the prep page for this evaluation and
follow the directions provided.

Part A: Multiple-Choice
Select the best answer for each question.

_____ 1. Bartering is an important part of a __________ economy.

a. mixed
b. command
c. market
d. traditional

_____ 2. A market economy is based on

a. government control of production.

b. social and cultural traditions.
c. private citizens buying and selling goods.
d. providing goods rather than services.

_____ 3. A communist or socialist country has a __________ economy.

a. traditional
b. command
c. mixed
d. market

_____ 4. What is an example of a WANT?

a. food
b. a digital television
c. clean water
d. shelter

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_____ 5. What controls the factors of production in a command economy?

a. the government
b. supply and demand
c. buyers
d. sellers

_____ 6. Why is scarcity the basic economic problem?

a. Resources are limited, but needs and wants are unlimited.

b. Resources are unlimited, but needs and wants are limited.
c. Supply and demand never reach an equilibrium point.
d. Equilibrium always prevents prices from increasing.

_____ 7. What is a trade-off?

a. the option TAKEN when deciding between two choices

b. the option NOT taken when deciding between two choices
c. a direct exchange of one good or service for another
d. paying less for a good or service than it is actually worth

_____ 8. Suppose Roy’s friends invite him to a party, but he stays home to study for a test. The
fun Roy would have at the party is a(n)

a. incentive.
b. profit.
c. gain.
d. opportunity cost.

_____ 9. Suppose a business makes a total of $1,000,000 each year and spends $740,000 a
year on expenses. What is its yearly profit?

a. $1,740,000
b. $740,000
c. $260,000
d. $1,000,000

_____ 10. In a market economy, competition means

a. businesses compete for customers to maximize profits.

b. one company controls an entire industry, such as computers.
c. the government reimburses private businesses for expenses.
d. the government places high taxes on private businesses.

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_____ 11. How does the profit motive make producers (sellers) responsible to consumers
(buyers) in a market economy?

a. To make money, a business must provide goods or services that people want.
b. The government provides goods and services to make sure everyone has them.
c. The government collects more money in taxes if more people are working.
d. Buyers are dependent on sellers because sellers provide goods and services.

_____ 12. The amount of a good or service that consumers are willing to buy is

a. demand.
b. supply.
c. a trade-off.
d. an opportunity cost.

_____ 13. The amount of a good or service that producers are willing to sell is

a. a trade-off.
b. an opportunity cost.
c. demand.
d. supply.

_____ 14. Equilibrium is

a. the point at which supply exceeds demand for a product.

b. the point at which supply and demand for a product are equal.
c. keeping the value of a country’s gold reserve equal to its paper money.
d. maintaining the same Gross Domestic Product for at least five years.

_____ 15. Why would a business want to maintain equilibrium for its product?

a. Producing more goods than people will buy wastes money.

b. Producing fewer goods than people want loses customers.
c. Profits made above equilibrium price are not backed by gold.
d. Both answer “a” and answer “b” are correct.

_____ 16. What is NOT always a property of money?

a. able to last a long time

b. accepted as money
c. easy for people to carry
d. fully backed by gold

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_____ 17. The United States has a mixed economy because

a. the government controls factors of production.

b. the government has no control over the market.
c. it has a free market but government is also active.
d. it does not have any kind of welfare state.

_____ 18. Suppose a country has a population of 300,000,000 people, and it produces
$550,000,000,000 worth of goods and services this year. How would you find the
country’s per capita Gross Domestic Product?

a. 550,000,000,000 plus 300,000,000

b. 550,000,000,000 divided by 300,000,000
c. 550,000,000,000 multiplied by 300,000,000
d. 550,000,000,000 minus total cost of expenses

_____ 19. Who controls the amount of money in circulation in the United States?

a. the Federal Reserve

b. Fort Knox
c. private businesses
d. the Central Intelligence Agency

_____ 20. What is inflation?

a. a decline in prices that cuts into businesses’ profits

b. an overall increase in prices that lowers the value of money
c. raising interest rates to discourage borrowing
d. banks keeping cash reserves on hand in their vaults

_____ 21. What is the highest career level?

a. career-level position
b. supervisory-level position
c. specialist-level position
d. executive-level position

_____ 22. A person’s first job is usually a(n) __________ position.

a. entry-level
b. supervisory-level
c. specialist-level
d. executive-level

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_____ 23. What is an example of an APTITUDE?

a. knowing how to repair a machine

b. believing fairness is important
c. enjoying bicycle racing
d. having a natural talent for art

_____ 24. What is an example of an ABILITY?

a. having a natural talent to play guitar

b. believing honesty is important
c. knowing how to repair a machine
d. enjoying bicycle racing

_____ 25. Which source of funding for college must be repaid after it is awarded?

a. scholarship
b. government education loan
c. work-study
d. military benefits

_____ 26. A __________ is a letter or Email sent with a résumé to introduce an applicant to an
employer.

a. portfolio
b. Form I-9
c. Form W-4
d. cover letter

_____ 27. A résumé should be

a. as long as possible.
b. one page in length.
c. at least two pages.
d. at least five pages.

_____ 28. At a job interview, you should

a. dress conservatively to show you are serious about the job.

b. dress in bright colors and fancy clothes to get attention.
c. use your smart phone to show you can multi-task.
d. talk a lot about your hobbies to create friendships.

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_____ 29. What is a BEHAVIORAL question you might be asked at a job interview?

a. What would you do if a customer said you gave him the wrong amount of change?
b. Tell me about a time when you corrected a mistake you had made.
c. Tell me about yourself.
d. What interests you about this position?

_____ 30. Making false verbal statements that hurt a coworker’s reputation is

a. flaming.
b. trolling.
c. cyberbullying.
d. slander.

Part B: Matching
Match each resource with the correct factor of production.

a. land
b. labor
c. capital
d. entrepreneurship

_____ 31. minerals

_____ 32. machinery

_____ 33. soil

_____ 34. workers

_____ 35. business owners

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Part C: Matching
Match each career cluster with the types of jobs it has. Use each answer one time only.

a. finance
b. marketing
c. arts, A / V technology, and communications
d. information technology
e. agriculture, food, and natural resources

_____ 36. processing and distributing agricultural products

_____ 37. banking, insurance, and other financial business services

_____ 38. the visual and performing arts

_____ 39. designing, supporting, and managing computer hardware and software

_____ 40. planning and managing sales activities

Part D: Matching
Match each question with the correct part of the SMART Goal Model. Use each answer one time
only.

a. specific
b. measurable
c. attainable
d. realistic
e. timely

_____ 41. How will you know when you achieve your goals?

_____ 42. Exactly what do you want to achieve with your goals?

_____ 43. Have you set goals that are practical?

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_____ 44. Are you setting goals that can be achieved?

_____ 45. Are the dates you have set for achieving you goals appropriate?

Part E: Matching
Match each interpersonal skill with the correct definition. Use each answer one time only.

a. problem-solving skills
b. critical thinking skills
c. verbal skills
d. listening skills
e. collaboration skills

_____ 46. interpreting situations and making reasonable judgments

_____ 47. communicating effectively with spoken or written words

_____ 48. understanding what people mean when they talk

_____ 49. working with others and compromising to reach a common goal

_____ 50. using your mind to solve a problem by working through specific steps

Carefully check your answers on this evaluation and make any corrections you feel are
necessary. When you are satisfied that you have answered the questions to the best of your
ability, transfer your answers to an answer sheet. Please refer to the information sheet that
came with your course materials.

Unit 1 Evaluation BUSH 033