Unit One Econ Quiz

What is the law of demand?

• As price increases, quantity demanded increases.

• As price decreases, quantity demanded increases.

• As supply decreases, demand increases.

• As supply increases, demand decreases.

What is the law of supply?

• As price increases, quantity supplied increases.

• As price decreases, quantity supplied increases.

• As demand increases, supply decreases.

• As price increases, supply decreases.

If two goods are substitutes, an increase in the price of one will:

• Increase the demand for the other.

• Decrease the demand for the other.

• Not affect the demand for the other.

• Increase the supply of both.

If the price of beef increases, the demand for chicken (a substitute) will:

• Increase.

• Decrease.

• Stay the same.

• Shift to the left.

Which of the following is not a determinant of supply?

• Technology.

• Price of related goods.

• Number of sellers.

• Consumer income.

Which of the following is not a service typically provided by banks?

• Accepting deposits.

• Offering loans.

• Issuing currency.

• Providing credit cards.

What is a checking account primarily used for?

• Saving money with interest.

• Short-term borrowing.

• Everyday transactions and payments.

• Long-term investments.

Which of the following is a benefit of having a savings account?

• High liquidity and easy access to funds.

• The ability to earn interest.

• The ability to write checks.

• Both a and b.

What does FDIC insurance protect?

• Bank loans to customers.

• The bank’s profits.

• Customers' deposits up to a certain limit.

• Interest rates.

Which of the following would most likely require you to pay a penalty for early withdrawal?

• Checking account.

• Savings account.

• Certificate of Deposit (CD).

• Credit card account.