Young Ameritowne Final Test Practice

The study of the ways people produce, distribute, and consume goods and services is the definition of:

• Entrepreneur

• Economics

• Investment

• Resource

Which of the following is NOT an example of the flow of money in the economic cycle?

• A business sells a product to a consumer.

• A business pays its employees for their work.

• A company goes out of business.

• A consumer buys goods from a business.

Which business provides goods to consumers?

• A doctor.

• A computer technician.

• A grocery store.

• A hair stylist.

If bad weather causes most of the orange trees to die, the price of orange juice will probably rise.

• True

• False

If bad weather causes most of the orange trees to die, the price of orange juice will probably rise.

• True

• False

For a business to be successful, it is important to know_____________.

• How much consumers are willing to save.

• People with a lot of money.

• Which goods were popular a long time ago.

• What consumers want to buy and how much they are willing to spend.

Which of the following is an example of a service:

• A jewelry store sells a bracelet.

• A bank cashes a check for an account holder.

• A clothing store sells a T-shirt.

• A bookstore sells a book.

What are the three branches of government?

• Economics, administration, and politics

• Executive, legislative, and judicial

• Congressional, banking, and legal

• Producer, consumer, and entrepreneur

Your check register shows you have a checking account balance of $5.00. You have $2.00 in cash. You may _______________.

• Write a check to the Containers Shop for $7.00 to buy a briefcase.

• Write a check to the Snack Shop for a drink and chips for $6.00.

• Pay $3.00 in cash to buy an address book.

• Write a check for $5.00 to the Sign and Print Shop for a bottle of magic ink.

The prices for products in Young Ameritowne are determined (set/changed) by ________________________.

• Salaries.

• Supply and demand for items.

• Cost of supplies.

• Cost of advertising.