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Chapter 1
1.
What kind of loan is where the interest is not charged until you graduate? Subsidized loan
2. Demand is the ___willingness___ and __ability__ of consumers to buy goods and services.
3. What is any money you receive from an outside source to help pay for education? Financial aid
4. A Follow-up is a _thank you_ email contact to a prospective employer after your interview.
5. What is money offered by the government for your educational expenses that you do not repay?
Grant
6. If you spend time observing a worker in a job that interests you, you are __job shadowing_.
7. Market economies are based on the laws of __supply___ and ____demand____.
8. Informal education where you’re learning a job as you do the work is called on the job training_.
9. A _reference__is a person who has known you and can vouch for your character, skills and
achievements. If listing them on a resume, be sure to get their _____permission__first.
10. A gift of money or other aid awarded to a student from various sources to help pay for education
is called a scholarship_______.
11. Your skill set is the unique _skills___ and ___abilities_____that you bring to the job market.
12. __Soft__ Skills are non-technical skills needed by most workers for success on the job.
List 3 examples: _______leadership, communication, public speaking, organization____
13. _Hard_ Skills are measurable physical and mental abilities that allow you to complete a specific
job. List 3 examples:___Baking cakes, performing surgery, building homes_______
Chapter 2
1. What are forms of pay other than salary or wages that are meaningful to an employee?
Benefits
2. A __commission____is a percentage of sale paid to an employee based on how much he/sells.
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3. An___entrepreneur_____is someone who takes the risks of being self-employed and owning a
business. Two types of businesses are ___lifestyle_____ and __venture____.
4. What is the “short” tax return form designed for single and joint filers with no dependents or
itemized deductions; typically your first tax returns will be this. ______1040EZ_________.
5. What do we call the total salary or wages you earned during a pay period? Gross Pay
When you have a savings or other investment fund that grows each month, you are earning
__interest_____ income. (it’s a type of unearned income)
7. After all deductions are taken out of your paycheck, the amount left is called your _net pay_.
6.
Name at least one synonym of this: __take home pay______
8. What is the pay you receive in addition to regular pay for each hour worked over 40 hours?
overtime
9. _Public Goods are government provided good and services paid for by your tax dollars (ex. Roads,
parks, police)
10. What optional deduction can you contribute a portion of your earnings to save for future, where the
money is taken out of paycheck and put in savings before taxes are deducted (pre-tax)? (ex: 401k,)
Retirement Plan
Chapter 3
1.
Cost-plus pricing sets a price based on production _costs_ plus a _markup_.
This helps a business reach a desired profit margin.
2. __Cost-recovery____pricing sets an introductory price high to recover the Research
& Developments costs.(R&D)
3. The type of inflation that you and I contribute to is the _demand-pull__ inflation, which means
higher prices as a result of consumers wanting to buy more goods and services than in supply.
(Note: This is the most common type of inflation)
4. You are __economizing___when you are saving as much as possible and spending only when
necessary.
5. What type of inflation is characterized by out of control rapidly rising prices at 50%+/year?
hyperinflation
6. The term for the increase in the general level of prices for goods and services is inflation_.
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7. Market-based pricing sets prices to be competitive with prices of _similar_products.
8. Markup is the percentage amount added to ___production costs___ to figure the selling price of
an item (a.k.a. profit margin)
9. You are ___optimizing____ when you are getting the highest value for the money you spent.
10. Using your own best self-interests to select goods and services based on need, want and logical
choice is called ____rational buying______.
11. If a resource’s scarcity is causing the price to be inflated, this type is called _realcost____inflation.
12. High prices followed by lower prices and then high prices again is called __reflation____
Name an example of this type of inflation:_Gas prices going up and down___
13. This concept says that a dollar you receive in the future will be less than a dollar you receive
today: _____Time Value of Money___________
Complete the following:
1. List at least 4 factors that may affect your earning potential: Ch.1
 Natural talent
 Education
 Hard Skills
 Soft Skills
2. List 4 college degrees in the order of how much time it takes to earn them (least to greatest)
Ch.1
 Associate’s Degree
 Bachelor’s Degree
 Master’s Degree
 Doctorate Degree
3. List the different criteria that scholarships are based on: Ch.1
 High grades or test scores
 Financial Need
 Athletic Ability
4. List 7 items that may be deducted from your paycheck and indicate whether it is a required
deduction or optional (Ch. 2)
 Social Security tax (required)
 Federal Income tax (required)
 State Income Tax (required)
 Medicare (required)
 Health Insurance (optional)
 Life Insurance (optional)
 Retirement fund (optional)
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5. What kind of tax is considered a progressive tax? Income tax
6. What kind of raise provides an increase in your purchasing power? Merit Raise or Bonus
7. What kind of raise helps keep you equal with inflation? Cost of Living Adjustment (COLA)
Fill in where blank and KNOW these concepts well:

____Ethics_______ refers to a set of moral values that people consider acceptable. (Ch. 1)
It is important to follow this code when filling out financial aid and tax forms.

Inflation basics:
o When prices are rising faster than your income, you (lose or gain?) purchasing power.
lose
o A __COLA___raise helps keep you equal with inflation and does not increase your
purchasing power
o A ___Merit_ raise in addition to a COLA raise will increase your purchasing power
o CPI stands for ______Consumer Price Index_________and is the measure of inflation
that the government calculates each year.

Good advice regarding resumes: (Ch. 1)
o Do you send the same exact resume to every job you are applying? No. Have a master
resume and then tailor it for each job you apply for
o What advice would you give regarding fancy fonts and style elements? Don’t do it!
o How many pages should a resume be and where do you place the most important info?
One page. Important info at the top 1/3 of the page
o And…Always proofread carefully!

Good advice regarding job interviews: (Ch.1)
o Before going, what should you practice? practice answering possible open-ended
questions where you talk about yourself
o Should you smile and act relaxed? Yes What if you are nervous? Use relaxation
techniques and fake it!
o
How could you show your interest in the company? Take time to research the
company to show your interest
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o Should you talk a lot or take your time and answer questions carefully to the point?
Take your time and keep answers to the point

__Advertising___ is what businesses use to create or stimulate demand. (Ch. 3)
(Sometimes creates a desire we didn’t know we had)

Be ready to answer a few consumer math computations like the ones we have done in class
Net Income = Gross Pay – Current Deductions
Unit Cost = Price / Quantity
Other Methods Of Review: Key Terms, PowerPoint Notes, Jeopardy Game on my website.
***I BELIEVE YOU CAN DO AWESOME ON THIS TEST – Study this!***
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