Pre-Test: Unit 6 - Economics

1. Which of these is the BEST example of a producer?

• a. person watching T.V.

• b. person cutting hair in a barbershop

• c. person taking a vacation at the beach

• d. person eating an ice cream cone at a restaurant

2. Which of these is a type of human resource that may have helped make a cake?

• a. the chef who baked it in the oven

• b. the customer who bought it in the store

• c. the consumer who ate it in a restaurant

• d. the person who saw the commercial for cake

3. Which of these services would be provided by the government at the local level?

• a. police department

• b. health insurance

• c. U.S. Military helping with hurricane relief

• d. making currency (coins and bills)

4. Which of these taxes would MOST likely be paid by all citizens?

• a. sales tax

• b. income tax

• c. property tax

• d. extra tax

5. Which of these would be considered a natural resource in the production of a car?

• a. electrical grid

• b. rubber

• c. auto worker

• d. assembly line

6. This term refers to the overall increase in the price of goods and services.

• a. appreciation

• b. deflation

• c. depreciation

• d. inflation

7. Franklin has been saving for a bike a long time. He goes to the store where there are many bikes to choose from. What is the most likely step that will happen next?

• a. he will trade his old bike for a new one

• b. he will beg the storeowner to give him bike

• c. he will purchase a bike with money he has saved

• d. he will wait for the store to give the old bikes away for free

8. During the summer people begin purchasing bathing suits in large numbers. What causes this change? Explain your thinking and provide an example.

9. Daniel wants to buy a new bicycle. He is going to wait until the bicycle he wants is on sale. Describe the MAIN reason Daniel is willing to wait?