Question

1. (02.02 LC)

The main benefit of a technical school certification is (4 points)


more limited choices for careers
more time spent perfecting skills compared to college
reduced costs compared to other degree options
reduced earning potential compared to college
2. (02.04 MC)
Principal Interest Year 1 Interest Year 10 Interest Year 20 Total Savings After 20 Years
$12,000 in Simple Interest Account $12,000 x 5%
= $600
= $12,600 $12,000 x 5%
= $6000
= $18,000 $12,000 x 5%
= $12000
= $24,000 $12,000 + 20 years of simple interest
= $24,000
$12,000 in Compound Interest Account $12,000 x 5%
= $600

= $12,600 ($12,000 + $6,615.94)

$18,615.94 x 5%
= $19546.74 ($12,000 + $18,323.40)

$30,323.40 x 5%
= $31,839.57 $12,000 + $20 years of compound interest
$31,839.57


Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Why should Juanita take this advice? (4 points)



She will earn interest on the initial deposit, as well as interest earned.
She will have quick access compared to other savings account.
She is saving for a short-term goal that will be reached soon.
She has so little to invest that it will be safer over the long term.
3. (02.05 MC)
Jared's friends invite him to dinner at a local restaurant that serves Cuban food. Jared declines the offer because he dislikes the flavors in Cuban dishes. Which of the following best represents the reason for Jared's decision? (4 points)


His limited budget and income
Higher price of the new options
Preference for another style of food
The lower price of available alternatives
4. (02.06 MC)
One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because (4 points)


the interest rate is higher and guaranteed to increase
the interest rate is higher but will not increase
the interest rate is lower and will not increase
the interest rate is lower but is likely to increase
5. (02.07 MC)
If Juliet consistently buys health insurance for twenty years but never suffers a costly illness, were her premium payments wasted? (4 points)


No, if the safety of being insured was worth less to her than the monetary cost of the premiums
No, if the safety of being insured was worth more to her than the monetary cost of the premiums
Yes, having insurance is never worth more than the monetary cost of the premiums
Yes, if the safety of being insured was worth more to her than the monetary cost of the premiums
6. (04.01 MC)
A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. Which of these dates would be considered the peak of this cycle? (4 points)


1980
1990
2001
2007
7. (04.01 MC)
If a series of events results in a decrease in investments in U.S. businesses, what is the result on the U.S. economy? (4 points)


Contraction
Expansion
Peak
Trough
8. (04.02 LC)
Which of the following industries benefits from government subsidies? (4 points)


Agriculture
Electronics
Fast food
Medicine
9. (04.02 MC)
A supply and demand graph, showing quantity on the x axis and price is on y axis. Red supply line S rises up and to the right f
Public Domain

What may happen if the line "Artificial Price" were above the intersection of the supply and demand lines? (4 points)


Artificial monopoly
Natural monopoly
Shortage
Surplus
10. (04.02 MC)
How are start-up costs related to natural monopolies? (4 points)


High start-up costs prevent others from offering the same service in a natural monopoly.
Low start-up costs make it easy for companies to have a natural monopoly.
Natural monopolies are held by companies that cannot pay for start-up costs.
The government offers companies money for start-up costs to prevent natural monopolies.
11. (04.03 LC)
Which best describes the function of the Federal Reserve System? (4 points)


Administration of taxes
Control of the money supply
Oversight of international trade
Regulation of commerce
12

Answer 1

The main benefit of technical school certification is the cost-effectiveness and job-focused education. For savings, compound interest is advantageous, and a fixed interest rate loan offers stability. Health insurance premiums are worthwhile for the security they provide. In economic cycles, higher prices signal a peak, and decreased investments lead to economic contraction.

Step-by-step explanation:

The main benefit of a technical school certification is reduced costs compared to other degree options, providing a streamlined education focused on specific job skills. When it comes to savings accounts, Juanita should opt for a compound interest account because she will earn interest on the initial deposit and on the interest already earned, which increases her total savings over time.

Jared's decision to decline the dinner invitation is simply based on his preference for another style of food. In the case of bank loan offers, customers should generally choose the 3% fixed rate loan over the variable rate loan because the interest rate is lower and will not increase, making it a more stable and predictable option.

Concerning health insurance, premium payments by Juliet are not wasted even without a costly illness, because the safety and peace of mind of being insured can be worth more than the monetary cost of the premiums.

In analyzing economic cycles, the peak would be the year when prices were highest before the crisis, likely 2001. A decrease in investments in U.S. businesses usually results in a contraction of the economy. Additionally, government subsidies are commonly provided to the agriculture industry.

Answer 2

1. The main benefit of a technical school certification is more time spent perfecting skills compared to college
2. Juanita, who lives with her brother, has saved $12,000 for a down payment on her own house. Her financial planner suggests she look for a savings account that offers compound interest accounts. Juanita should take his advice because: She will earn interest on the initial deposit, as well as interest earned.
3. Jared's friends invite him to dinner at a local restaurant that serves Cuban food. Jared declines the offer because he dislikes the flavors in Cuban dishes. The best representation of Jared’s decision is Preference for another style of food
4. One bank offers a 4% variable rate loan, while a competitor offers a 3% fixed rate loan over the same period. Assuming no other differences between the loans, a customer should choose the fixed rate loan because the interest rate is lower and will not increase
5. If Juliet consistently buys health insurance for twenty years but never suffers a costly illness, were her premium payments wasted? No, if the safety of being insured was worth more to her than the monetary cost of the premiums
6. A period of economic stability began in the 1980s. In 2001, prices began to increase. In 2007, an economic crisis caused prices to fall. 2007 would be considered the peak of this cycle because from there, the prices start to fall.
7. If a series of events results in a decrease in investments in U.S. businesses, It would result to a CONTRACTION on the U.S. economy
8 The Medicine industry benefits from government subsidies.
9. A supply and demand graph, showing quantity on the x axis and price is on y axis. Red supply line S rises up and to the right f
There is SURPLUS if the line ""Artificial Price"" were above the intersection of the supply and demand lines.
10. How are start-up costs related to natural monopolies?
High start-up costs prevent others from offering the same service in a natural monopoly.
11. The function of the Federal Reserve System is to CONTROL THE MONEY SUPPLY