Understanding Economics for Year 6

What happens to the price of a good when the demand increases but the supply remains the same?

• The price decreases

• The price increases

• The price stays the same

• The price becomes unpredictable

Which of the following is an example of a service?

• A loaf of bread

• A haircut

• A bicycle

• A book

If a consumer has $50 and wants to buy a toy that costs $55 and a book that costs $30, what is the consumer's choice?

• Buy both the toy and the book

• Buy only the toy

• Buy only the book

• Save money by purchasing both items at the same time

What is the main purpose of money in an economy?

• To create wealth

• To serve as a form of exchange

• To be stored in banks

• To be given as gifts

Which of the following is an example of a good?

• A taxi ride

• A concert

• A smartphone

• A cooking class

What is the term for the amount of a product that producers are willing to sell at a certain price?

• Demand

• Supply

• Exchange

• Trade

If the supply of a product increases and the demand remains the same, what is likely to happen to the price?

• The price increases

• The price decreases

• The price stays the same

• The price becomes unpredictable

Which of the following is a factor that can influence consumer choices?

• Weather conditions

• Personal preferences

• Financial situations

• All of the above

What is the term for the exchange of goods and services without using money?

• Trade

• Barter

• Sale

• Purchase

Which of the following is a basic principle of money management?

• Spend more than you earn

• Save a portion of your income

• Avoid budgeting

• Ignore financial goals