Economy and Scarcity Quiz

Which is the best evidence of a healthy economy?

• An economy in which businesses are closing

• An economy in which many people are employed

• An economy in which people have a scarcity of goods

• An economy that must import all goods from other countries

"Scarcity limits the amount of goods and services that are available. Scarcity means there is not a lot of something. For example, certain kinds of food can be scarce when there is a drought. People make choices based on their needs and wants. Scarcity can limit their choices." What is the meaning of the word scarcity?

• when a budget shows there are more expenses than there is income

• when people do not have enough money to pay for goods and services

• when there are not enough goods and services to meet consumer demand

• when consumers make choices based on their wants rather than their needs

Why is it a good idea for people to put their money in a bank? (Part A)

• A bank budgets people's money for them.

• Banks work with governments to keep sales taxes low.

• Bank managers help people choose which things to buy.

• People can earn money by putting it in a bank that pays interest.

Which sentence best supports the correct response to Part A?

• Banks pay a small fee called interest to the owner of the money.

• Banks charge interest on loans so people will pay back more money than they borrow.

• Banks also loan money to people who want to buy items that have a high cost, such as a home or a car.

• Companies use advertising to try to influence the choices consumers make and to get people to buy what they are selling.

Which statements give reasons that the United States imports coffee beans from Colombia? Choose two statements.

• Colombia specializes in growing coffee.

• Colombia’s supply of coffee suffers from scarcity.

• The United States does not tax imported coffee beans.

• The climate of the United States is not good for growing coffee.

• There is little consumer demand for coffee in the United States.

The United States Mint produces coins. If you see a 'P' on a coin, what does it likely mean?

• The coin is a penny.

• The coin has been taken out of circulation.

• The coin was minted in Philadelphia, Pennsylvania.

• The coin was designed by a person whose name begins with 'P'.

Which is a way that the economy can affect people who are helping their community?

• It may be difficult to raise money for a charity if the economy is thriving.

• Since volunteers do not get paid, they do not contribute to society.

• Local businesses are less likely to donate products and services in a good economy.

• When the economy does well, people are more likely to have money to donate to a cause.

Which two factors impact the decisions people make about choosing a career?

• Personal interests and skills

• Salary and job stability

• Location and work environment

• Company reputation and benefits

What is one reason people might choose to work in a particular industry?

• Because it is the only job available in their area

• Because they have a passion for the work

• Because it requires no skills or training

• Because it offers the shortest working hours

Import means

• buying goods from another country
• selling goods to another country
• only making one kind of product