Name:
FL Unit 1 Test Study Guide
Date:
Block:
Fill in the blanks and quiz a partner on these Key Terms:
Chapter1
1. Subsidized
student loan
2. demand
Loan where the interest is not charged until after you graduate.
3. financial aid
money you receive from an outside source to help pay for education
4. follow-up
Contact in form of a thank you email to a prospective employer after the interview but before being hired
5. grant
money given to pay for educational expenses that does not have to be repaid
the willingness and ability of consumers to buy goods and services
6. job shadowing spending time observing a worker in a type of job that interests you
7. market
economy
an economy based on the laws of supply and demand
8. on-the-job
training
learning as you do the work, considered to be informal education
9. references
people who have known you and can provide information about your skills, character, and achievements;
When listing them on a resume, be sure to get their permission first.
10. scholarship
a gift of money or other aid awarded to a student to help pay for education
11. skill set
the unique skills and abilities that you bring to the job market
Word Bank for Ch. 1, #1-11
graduate
supply
Thank you
demand
permission
informal
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12. soft skills
Non-technical skills needed by most workers for success on the job
List 3 examples: leadership, communication, organization, public speaking, good with people…
13. hard skills
measurable physical and mental abilities that allow you to complete a job.
List three examples: operating a forklift, plumbing a house, performing surgery, CPR…
Chapter 2
1. benefits
forms of pay other than salary or wages, that benefit an employee.
2. commission
a set fee or percentage of a sale paid to an employee instead of or in addition to salary or wages
3. entrepreneur
One who takes the risks of being self-employed; owning a business -types: lifestyle or venture
4. Form 1040EZ
the short tax return form designed for single and joint filers with no dependents or itemized deductions
5. gross pay
total salary or wages earned during the pay period
6. interest
money earned on savings accounts and other funds – unearned income
7. net pay
the amount of your paycheck after deductions
8. overtime pay
pay received for hours worked in addition to regular hours (1.5 times hourly rate)
9. public goods
government-provided goods and services paid for by your taxes (ex. Education, roads, parks, police)
10. retirement plan
an optional deduction into which employees contribute a portion of their earnings for their retirement;
taken out of paycheck before taxes are deducted (pre-tax dollars) ex:401k, 403b, pension
Paid for
percentage
2
unearned
taxes
Word Bank for Ch.2, #1-10
Lifestyle
Venture
Name:
FL Unit 1 Test Study Guide
Date:
Block:
Chapter 3
1. cost-plus pricing
setting a price based on production cost plus markup (to reach a desired profit margin)
2. cost-recovery
pricing
setting an introductory price high to recover the R&D costs
3. demand-pull
inflation
higher prices as a result of consumers wanting to buy more goods and services than producers supply
4. economizing
saving as much as possible and spending money only when necessary
5. hyperinflation
Rapidly rising prices that are out of control (thankfully not experienced in the U.S.)
6. inflation
increase in the general level of prices for goods and services
7. market-based
pricing
setting prices to be competitive with prices of similar products currently being sold
8. markup
the percentage amount added to production cost to obtain the price of an item (a.k.a. profit margin)
9. optimizing
getting the highest value for the money spent
10. rational buying
process of selecting goods and services based on need, want, and logical choices (using best self-interests)
(Demand-pull is the most common type of inflation)
11. real-cost inflation rising prices due to scarce resources or increased difficulty in obtaining resources
12. reflation
high prices followed by lower prices and then high prices again Ex. gasoline
13. time value of
money
a concept that says a dollar you receive in the future will be worth less than a dollar you receive today
Word Bank for Ch. 3 #1-13
Self-interests
common
Profit margin
percentage
future
gasoline
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Complete the following:
1. List at least 4 factors that may affect your earning potential:
 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)
 Associate’s Degree
 Bachelor’s degree
 Master’s degree
 Doctorate degree (PhD)
3. List the different criteria that scholarships are based on
 High grades or test scores
 Athletic skills
 Need (financial)
4. List 7 items that may be deducted from your paycheck and state whether it is a required deduction or optional
 Social Security tax (required)
 Federal income tax
 State income tax
 Medicare
 Health insurance
 Disability insurance
 Retirement fund
 Life insurance
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
7. What kind of raise helps keep you equal with inflation? COLA
8. Draw a picture of relationship between supply, demand and prices using symbols S, D and P
4
Name:
FL Unit 1 Test Study Guide
Date:
Block:
Read and Know these concepts well:

Advertising is what businesses use to create or stimulate demand

Ethics refers to a set of moral values that people consider acceptable

Inflation basics:
o When prices are rising faster than your income, you lose purchasing power.
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 (Consumer Price Index) is the measure of inflation

Good advice regarding resumes:
o Tailor each resume to the specific job you are applying
o Do not use fancy fonts and style elements – keep it simple and easy to read
o Keep resume to one page with most important info at the top 1/3 of page
o Proofread carefully

Good advice regarding job interviews:
o Before going, practice answering possible open-ended questions where you talk about yourself
o Smile and act relaxed – do not bring tension in
o Take time to research the company to show your interest
o Take time to answer questions carefully and get to the point – do not talk too much

Be ready to answer a few simple computations

OTHER METHODS OF REVIEW: Your Key Terms, PowerPoint Notes, and Jeopardy Review Game posted on my
website.
***I BELIEVE YOU CAN DO AWESOME ON THIS TEST!***
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