6th Grade Economics Pretest

Scarcity is...

• A situation in which someone can meet the needs of their civilization but can't meet the needs of anyone else.

• Having everything you want and need.

• A situation in which wants exceed the resources available to fulfill those wants; when supply is less than demand

• Only applying to goods and not services.

 The choices consumers and businesses make have both present and future consequences.

• True

• False

In economics, costs and benefits apply to...

• Money and time

• Enjoyment and Energy

• Materials

• All of the above.

You have $20 dollars and can either spend it on a new game or a new shirt. You spend your money on the game. What is your opportunity cost?

Trade off is...

• The result of giving up one thing for another as part of a compromise.

• The exact same thing as opportunity cost.

• What happens in sports.

Productive resources can not be used in different ways to produce different goods and services.

• True

• False

Economic incentives such as wanting to acquire money or goods and services and wanting to avoid loss, powerfully affect the way people behave.

• True

• False

An example of a negative economic incentive would be:

• Having lunch detention after breaking a rule at school.

• Having to pay a fine when speeding.

• Getting grounded when you fail a test.

• Getting paid $10 for shoveling.

An economic loss is:

• When a business loses buyers.

• When you can't find your wallet.

• When a business loses the product they are producing.

• When the revenues entrepreneurs receive from selling the products they sell do not cover the costs of production.

The decisions of businesses are influenced by various factors. What are some of them?

• What people want and the competition the business has.

• How much profit the business can make and what resources are available to them.

• None of these.

• Both blue and green.