Consumer Education Unit 1 Test
NAME: __________________________________________________BLK#__________
True/False: Mark A for True and B for False on your answer sheet.
1. Once set, people’s values remain the same throughout their lives.
2. Needs are the things you can’t live without while wants are the things that you would like to have but can live without.
3. According to the law of demand, consumers will demand less of a product at a lower price than at a higher price.
4. Businesses rarely pass the cost of advertising on to consumers in higher prices.
5. Bait and switch schemes are illegal.
6. Competition results in lower prices and lower quality of products.
7. An ad that accidentally misleads consumers is an example of deceptive advertising.
8. …show more content…
The value of all goods and services produced by a country in a year is known as the GDP.
9. The gradual increase in prices each year is known as deflation.
10. In order to keep up with inflation businesses will often provide a cost of living adjustment to their employees.
11. Free trade is a nation's economic policy of permitting its citizens to buy and sell where they please with limited restrictions.
12. The export of services is an important aspect of U.S. trade.
13. The price of a country's currency rises and falls in relation to world demand for that currency.
14. The unemployment rate is the percentage of people who are able and looking for work and do not have jobs.
15. When individual nations prosper, the world economy grows.
Multiple Choice: Select the best answer to the following questions and mark on your answer sheet
16. An economy in which the government tells you what to produce is a description of a: a. Command
b. Mixed
c. Traditional d.