Economics Review

Which is a natural resource?

• A police officer

• Wood

• A chain saw

• money

Which one is a human resource?

• a teacher

• a building

• money

• rocks

Both natural resources and human resources are used in economics. Which of the following is an example of a human resource?

• people shopping in a bakery

• workers in a factory

• water

• wood

Which is the main way communities are able to build new schools and fix roads?

• gifts

• tax dollars

• yard sales

• bake sales

What is tax?

• money collected by the government

• a plan on how to spend money

• a bank that stores money

• selling products

Taxes help pay for all of the following except

• parks

• police stations

• restaurants

• fire stations

If people really want something, they will probably pay more for it. Which of the following is true based on this statement?

• If the demand is high, the price will go down

• If the demand is high, the price will go up.

• If the demand is low, the price will go up.

• If the demand is low the price will not change.

A bubble gum factory makes 500 packs of gum a day. They sell quickly, and store owners have lists of people wanting to buy more bubble gum. The factory owner decides to hire more workers to make more gum. This is an example of

• supply and demand

• specialization

• buying and seling

Which of the following would make the price of an item decrease (go down)?

• The demand is greater than the supply of an item.

• The supply of the item is greater than the demand.

• The price of the natural resource needed to make the item increases.

Why is it important for the government to collect taxes?

• So they can use the money to build fire stations, parks, police stations and libraries. All of these things are important to the community.

• If taxes were not collected then people would make too much money.

• Without taxes we could not have coffee shops and shopping malls to shop at.