Question

A cashier gives one person a $5 bill and 15 $1 bills in exchange for a $20 bill. He gives a second person a $10 bill, a $5 bill, and five $1 bills in exchange for a $20 bill. Which characteristic of money does this illustrate? *
divisibility
uniformity
durability
portability

What is an interest rate? *
a service provided by a retail store
the price to borrow or save money
a required insurance fee
a loan add-on

Which of the following can trigger inflation? *
The government spends as much money as it makes.
The government doesn’t print enough money
The government prints too much money.
The government continues to print extra money at the same rate of speed.

If interest rates begin to drop over time for car loans, what would you assume about the demand for purchasing a car? *
That there has been a decrease in the demand for cars
That there has been an increase in the demand for cars
That there has been a decrease in the availability of cars
That there has been an decrease in car insurance

Maria and Thomas were hired as customer service representatives the same week. They’ve now been at the job for seven months. Maria consistently gets positive feedback on her calls, and her call volume is 30% higher than Thomas. Thomas has been given good feedback for the most part, though some customers have said he could be more helpful. Neither worker has management experience, though Maria hopes she won’t be on the phones for more than another year.

What is the most likely event that will take place in this situation? *
Thomas will be given a bonus for always getting good feedback from his callers.
Thomas will be asked to leave the company.
Maria will be given a raise, but Thomas will not.
Maria will be asked to leave the company.

What of the following is the best description for payment for labor? *
compound interest
principal
interest
wage

Which of these actions is an entrepreneur most likely to take? *
begin working for a large corporation
ignore ways to solve economic problems
develop and market a new product
specialize in one task

Entrepreneurs take risks when they start their own businesses. Based on what you learned why would this be true, financially speaking? *
entrepreneurs risk going bankrupt trying to meet their business’s costs
entrepreneurs have to consider whether to maintain their current employer
entrepreneurs are rarely willing to attempt to run a new business
entrepreneurs are unmotivated to solve economic issues with their business

Carrie does not work as quickly as her coworkers. She knows that it is due to her lack of experience with newer computer programs. She is barely keeping up with the workload. She has to figure something out to be more efficient at her job.
How can Carrie's productivity at her work be improved using human capital? *
Carrie could ask her employer for a leave of absence
Carrie could take a course on the computer program that her job uses
Carrie could leave this position and look for a new job.
Carrie could try to start her own business independently.

Answer 1

Answer:

1. divisibility

Money can be divided into different smaller values in order to exchange for certain goods or services. Because goods or services come in different range of value, the amount paid for each item also varies. Therefore, money must come in different proportion so that the exchange could be done smoothly.

2. a loan add-on

An interest rate is an additional fee to be paid on top of the actual cost of a loan such as cash, consumer goods, or assets such as vehicle and building. This is the income the lender gets for lending money or goods. It could be paid monthly or annually depending on the deal the lender and borrower agree upon.

3. The government prints too much money.

Printing too much money especially in paying debts will surely trigger inflation. Inflation is defined as a general increase in prices and fall in the purchasing value of money. If there is more demand but less supply, the prices of such commodities also increase.

4. That there has been a decrease in the demand for cars

If interest rates begin to drop over time for car loans, there is a tendency that there has been a decrease in the demand for cars. The car company uses this technique as a marketing strategy to lure possible buyers.

5. Maria will be given a raise, but Thomas will not.

Maria has more chances of being promoted because she is consistent in her performance and is a fast worker having more call volume of 30% compared to Thomas. In addition, Maria is driven by her desire to go more than answering phone calls. The management sees the difference between the two workers and will reward the one who deserves it.

6. wage

Wage is defined as a fixed regular payment, typically paid on a daily or weekly basis , made by an employer to an employee, especially to a manual or unskilled worker. Compound interest, principal and interest are all part of the financial investment and are not a payment form.

7. develop and market a new product

An entrepreneur is a businessman. He or she is out to start or make business of selling a product, be it goods or services. Therefore, his or her expected action would be to create or produce a product and sell it to prospect buyers.

8. entrepreneurs risk going bankrupt trying to meet their business’s costs

Entrepreneurs are risk takers. Successful entrepreneurs are never afraid of taking risks. However, the cost of putting up a business and maintaining it is indeed "costly." If the sales and promotions fail, there is a tendency to go bankrupt which is literally losing what you have invested.

9. Carrie could take a course on the computer program that her job uses

The lack of experience with newer computer programs that slows down Carrie's work can be solved by taking a course on the computer program that her job uses. It may cost her some money but she could regain the money spent on the training as she would soon be able to do her job well and at par with her coworkers.