Economic Basics Practice

Match the scenario with the correct label.

Ms. Thrasher goes to the store and buys a new backpack.

• Supply & Demand

• Competition

• Consumer

• Scarcity

Match the scenario with the correct label.

Mr. Stokes invents a new type of cupcake and starts selling them for $10 each.

• Scarcity

• Opportunity Cost

• Profit

• Producer

Match the scenario with the correct label.

Mrs. Hitz spends $10 on lemonade mix and ice. On a hot day, she sets up a lemonade stand in her yard. At the end of the day, she sold $20 worth of lemonade.

• Scarcity

• Opportunity Cost

• Profit

• Producer

Match the scenario with the correct label.

Mrs. Cho's gas station sells gas for $3.75/gallon. Across the street, Mr. Darr’s gas station sells it for $3.74/gallon. Mrs. Cho lowers her price to $3.74.

• Supply & Demand

• Competition

• Consumer

• Scarcity

Match the scenario with the correct label.

Mr. Ostenfeld owns a car company that made thousands of cars this year, but people haven’t been buying as many cars. All of his lots are full!

• Supply & Demand

• Competition

• Consumer

• Scarcity

Match the scenario with the correct label.

Mr. Powell could make $24 this afternoon by babysitting, or he could attend his grandma’s birthday party. He decides to attend the birthday party. He didn’t make any money, but his grandma is very happy to see him. 

• Scarcity

• Opportunity Cost

• Profit

• Producer

Match the scenario with the correct label.

It’s the holidays, and the hottest toy of the year sells out. Mrs. Grausz pays ten times what it’s worth online!

• Scarcity

• Opportunity Cost

• Profit

• Producer

Does this person have an incentive to make the decision they are considering?

Ms. Hine is thinking of getting some raspberries, but they’re out of season and cost $6 for a tiny box. Does she have an incentive to buy? 

• Yes

• No

Does this person have an incentive to make the decision they are considering?

Ms. Terry’s computer company is thinking of making touch- screen computers. She could make computers for $500 each, and then sell them for $2,000. Does she have an incentive to produce?

• Yes

• No

Does this person have an incentive to make the decision they are considering?

Mr. Bolt is thinking of making cars that run on water. It will cost $100,000 to make one car, but people won’t pay more than $40,000. Does he have an incentive to make cars? 

• Yes

• No