Economics Final Practice

What is open-ended credit also known as?

• Installment credit
• Revolving credit
• Fixed credit
• Term credit

When summer jobs end because school starts, this represents:

• Structural unemployment
• Seasonal unemployment
• Cyclical unemployment
• Frictional unemployment

What is the primary difference between gross and net income?

• Time period of payment
• Method of payment
• Deductions and taxes
• Payment frequency

Daycare expenses are typically considered:

• Variable expenses
• One-time expenses
• Fixed expenses
• Optional expenses

An automated phone system replacing workers is an example of:

• Seasonal unemployment
• Frictional unemployment
• Structural unemployment
• Cyclical unemployment

In terms of credit, a mortgage is considered:

• Open-ended credit
• Revolving credit
• Closed-ended credit
• Flexible credit

Which economic concept explains why prices rise when demand increases?

• Government regulation
• Market equilibrium
• Supply and demand
• Production costs

When someone moves with their spouse and quits their job, this creates:

• Structural unemployment
• Frictional unemployment
• Seasonal unemployment
• Cyclical unemployment

Interest on a loan represents:

• The principal amount
• The cost of borrowing money
• The down payment
• The monthly payment

Which of the following best describes entrepreneurship as a factor of production?

• Physical labor input
• Natural resources used
• Risk-taking and organization
• Financial capital invested