Economics

Marco and Kayla open a brownie stand. What must occur in order for their business to make a PROFIT?

• The amount of money they earn from selling brownies must be equal to the amount they spent on supplies.
• Marco and Kayla must sell all of the brownies that they made.
• The amount of money they earn from selling brownies must be less than the amount they spent on supplies
• The amount of money they earn from selling brownies must be greater than the amount they spent on supplies.

Suzie has $30 in her purse when she goes to the mall. She wants to buy new shoes and make up. The shoes cost $14 and the make up cost $8. If she decides to buy make up instead of shoes.....

• she will not be able to get as much.
• the shoes will sell out.
• she will be able to buy more items.
• she will not get the make up that she likes.

Which of the following is an example of the effects of competition in the economy?

• A small hardware store closes when a large Home Depot store opens nearby.
• Retired people receive payments from the government.
• Shoppers have to pay sales tax on all items they buy.
• The price of oranges goes up when Florida has a drought.

Eternity is trying to buy a new car. What is the best way for her to do this?

• put her new house up for sale
• put herself on a spending budget
• spend more money to fix her car
• switch jobs to work less hours

Which of the following is an example of a business taking a risk?

• opening a new story in the city
• adding information to the company Web site
• rearranging the furniture in the office
• emailing a newsletter to customers

Which of the following describes an entrepreneur?

• A person who loans the money to a new business just getting started.
• A person who invests in businesses to make money.
• A person who organizes, operates, and takes the risk for starting a new business.
• A person who is hired to work in a factory.

All businesses are motivated by the desire to do what?

• force all other businesses to close
• break even
• lose money
• earn a profit

Identify one item that a taxes are used to pay for.

• a brand new school bus
• designing electronics
• any movies that get made
• someone's brand new computer

Read the passage:
When Lucy goes to the story to buy a candy bar, she sees that the candy bars cost $2.00. She takes one to the cash register to ring it up, and the total price ends up being $2.14. She has $2.25, so she has just enough money to buy the candy.
The candy bar was only $2.00. Why does Lucy have to pay 14 cents more than the candy's price?

• The candy she is buying is special, and not many bars were made.
• She owes the cashier money from the last time that she bought something.
• There is another item that she bought that cost 14 cent.
• She is paying taxes in addition to the price of the candy.

Read the passage:
Arnold has chosen a new game system that he wants to buy, but he cannot afford it. His friend, Mindy, tells him to wait because a new version of the game system he likes will come out at the end of the year. The new version will run faster and have more disk space than the one that Arnold likes. She says that by then, the game system that Arnold wants will be a lot less expensive.
Why does the price drop for the game system Arnold wants?

• Game system makers have a hard time making game systems.
• New, more advanced game systems become available, and it shrinks the demand for the old system.
• Demand for these game systems grows because businesses find new ways to use them.
• Stores do not have enough supply of the systems.