Economics 5th Grade

The law of supply and demand is very important in economics. Which of the following correctly describes supply and demand?

• consumers will buy whatever is produced
• producers will make what consumers demand
• suppliers will make whatever they decide to
• investors will put money into any business

What is given up when a choice is made is:

• price incentive
• rationing
• specialization 
• opportunity cost

The cost a consumer pays to purchase a good or service from a producer

• price
• cost
• incentive
• income

Which is not an example of a price incentive?

• a sale on cereal
• a new candy display
• a "buy one, get one free" offer
• a coupon offering one dollar off

____________ is a way to keep track of spending.

• a savings account
• a budget
• an investment
• a price incentive

a person who starts and runs their own business

• investor
• producer
• entrepreneur 
• inventor

money earned through employment (job) and investments

• incentive
• taxation
• income
• costs

Goods-or-Services:
doctors
lawyers
barbers
electricians
Wi-Fi

• Goods
• Services

Goods-or-Services:
food
cars
clothes 
cellphone
pencils

• Goods
• Services

What would MOST LIKELY increase a store’s sales of a product?

• reducing the store's hours
• reducing the store's employees
• lowering the price of the product
• limiting advertising of the product