Economics Test Review

People get money by earning an income by trading their time and effort for money

• TRUE

• FALSE

People and countries are interdependent, so they import (into the country) and ___________ (out of the country) many goods and services.

Each country in the world has the same form of currency (bills and coins).

• True

• False

If the supply goes down, the price goes _____________.

• down

• up

• stays the same

If the supply goes up, the price goes _____________.

• down

• up

• stays the same

If the demand goes down, the price goes _____________.

• down

• up

• stays the same

If the demand goes up, the price goes _____________.

• down

• up

• stays the same

Advertising is used to try to increase the ______________ for an item.

• supply

• demand

When you save money in a bank, you ______________ interest.

• pay

• earn

When you borrow money from a bank, you ______________ interest.

• earn

• pay