Chapter 3 & 4 Review [Grade 7]

The money spent on raw materials used to produce goods or services is called...

• Selling price

• Cost

• Capital

• Revenue

The money received from selling products (goods or services) to the customers is called....

• Cost

• Selling price

• Revenue

• Capital

The money earned after selling price is deducted by costs is called ....

• Profit

• Revenue

• Income

• Cost

Which of the following is the correct understanding of Opportunity Cost?

• Gain maximum benefits with the lowest possible expenses

• payment to be maid once you have decided on something

• production costs

• the value of the next best alternative you give up whenever you make a decision

Which of the following is the correct example of opportunity cost to the economy if the government decides to build a toll road?

• The money spent on building a toll road

• The other projects (e.g. better health care) could have been undertaken had the toll road not been built.

• The overall cost to taxpayers of financing the toll road project.

• The cost of relocating and compensating residents in order to build the toll road.

It is defined as an activity carried by an individual or group of people to consider a sacrifice in order to get what he/she wants.

• Economic motive

• Economic action

• Economic principle

____ are the reasons that encourage individuals to fulfil their needs.

• Economic motive

• Economic actions

• Economic principle