The price of a product is set where both buyers and sellers are satisfied. Which phrase describes this price? (4 points)

	Higher than equilibrium
	Lower than equilibrium
	Where the market clears
	Cannot be determined

2.

(01.09 MC) Which group is a list of fixed expenses? (4 points)

	Car insurance, rent, student loan payments
	Health insurance, pet needs, entertainment
	Mortgage, household items, clothing
	Public transportation costs, gifts, medical bills

3.

(01.02 MC) Kim decides to go to the zoo on Tuesday afternoon. On Tuesday, Kim's boss assigns a new project due by the end of the day. Which of the following statements describes the opportunity cost of Kim using Tuesday to work on the project? (4 points)

	Kim enjoys an afternoon at the zoo.
	Kim's project will be late.
	Kim gets fired from the job.
	Kim will save the cost of the zoo ticket.

4.

(01.08 LC) To earn money on your investments, your rate of return must be higher than which value? (4 points)

	Rate of deflation
	Rate of inflation
	Interest rate
	Account fees

5.

(01.09 LC) You need to decrease your spending to balance your budget. Which budget category is simplest to target for spending cuts? (4 points)

	Entertainment
	Housing
	Transportation
	Utilities

6.

(01.08 LC) What are stocks? (4 points)

	Loans people make to a government and expect to be repaid
	A pool of money from investors that is invested in many ways
	Retirement savings accounts that are tax deferred
	Shares of ownership in a company that may pay dividends

7.

(01.05 MC) The cost to manufacture shoes decreases. Which statement describes the expected outcome? (4 points)

	Supply of the shoes will decrease, and market price will decrease.
	Supply of the shoes will decrease, and market price will increase.
	Supply of the shoes will increase, and market price will decrease.
	Supply of the shoes will increase, and market price will increase.

8.

(01.04 MC) Use the graph to answer the question that follows.

2021 FLVS Which of the following could cause movement from point B to point A? (4 points)

	Fewer workers are needed to manufacture the product.
	New companies begin to manufacture the same product.
	The price that companies can charge for the product decreases.
	New technologies make manufacturing the product more efficient.

9.

(01.07 LC) How is a sales tax similar to a flat tax? (4 points)

	Both are direct taxes.
	Both are indirect taxes.
	Both are the same rate for everyone.
	Both change according to income.

10.

(01.01 LC) A clothing company is considering whether a new technology will speed up their ability to fulfill customer orders. Which economic question are they focusing on? (4 points)

	What to produce?
	How to produce?
	Why to produce?
	For whom to produce?

11.

(01.09 MC) You earn $50,000 per year. Your entire income is taxed at the 10 percent federal tax bracket. Which value reflects what you will pay in federal income taxes? (4 points)

	$1,000
	$4,000
	$5,000
	$10,000

12.

(01.06 LC) Which characteristic of money explains that currency has a consistent numerical metric, whether one dollar is in the form of an old or a new dollar or as one hundred one-cent pennies? (4 points)

	Standard
	Store of value
	Medium of exchange
	Measure of value

13.

(01.01 MC) Jan and Jamie are starting a nonprofit store. They plan to sell handmade scarves and jewelry. Which basic economic question do they still need to answer? (4 points)

	For whom to produce?
	How to produce?
	What to produce?
	Why to produce?

14.

Market Demand $5 $4 Price $3 $2 $1 D 0 100 200 300 400 500 Quantity