SS Economics Daily Grade 2

Which of the following are true about supply and demand?

• If demand is greater than supply, then prices are lower.

• If supply is greater than demand, then prices are lower.

• If supply is equal to the demand, then prices are higher.

• If supply is greater than demand, then prices are higher.

Why do local, state, and federal governments collect taxes?

• To take away citizens’ rights

• To provide services to citizens

• To support church youth groups

• To make sure laws are being followed

Which of the following is the BEST completes the graphic?

• Consumers pay taxes to producers.

• Consumers loan money to producers.

• Consumers make goods for producers.

• Consumers buy the goods of producers.

Why do countries create currency?

• so people can become wealthy

• so people can buy goods and services

• so people can pay taxes to the government

• so people can trade labor for goods and services

Jewel wants to use her money to buy a skateboard and a bicycle. She can only afford one of them. She decides to buy a skateboard. Which of the following is one of Jewel's opportunity costs?

• owning a bicycle

• riding a skateboard

• earning money in the future

• spending money at the store

Which of the following BEST completes the boxes?

• Miguel saves money; Julio spends money.

• Karen makes slime; Carly buys the slime.

• Mike buys the Xbox 360; Diego makes the Xbox 360.

• Jamal earns an allowance; Larry works for his income.

Donald lives in a small town in Georgia. His town has no factories. One day, Donald sees a commercial for a new pair of basketball shoes. He goes to a shoe store near his house and finds the shoes. What is the MOST LIKELY reason that the store has the shoes?

• The shoes were made by the local government using taxes.

• The shoes were made by workers at the store and put on sale.

• The shoes were made by the local basketball team and set to the store.

• The shoes were made in another part of the country and sent to the store.

Who benefited from this exchange?

• Only Trish benefited

• Only Greg benefited

• Both Trish and Greg benefited

• Neither Trish nor Greg benefited

Lilly has been saving up her money for a new PS5. She has enough to buy it, but her old Playstation still works just fine. What is Lilly’s opportunity cost if she decides to go ahead and buy the new PS5?

• Lilly will have a new PS5.

• Lilly will have a smaller amount of money in her savings.

• Lilly will have two playstations that she can play with.

• Lilly will have more than she did before buying the new PS5.

What are the baseball hat and the skateboard?

• They are goods.

• They are services.

• They are producers.

• They are consumers.