EVERFI SmartEconomics Modules 1-3 Take Home Test

Who has the role of buying goods and paying for services in an economy?

• economist

• consumer

• producer

• analyst

When someone opens a cupcake bakery, what role would they play in the economy?

• researcher

• analyst

• economist

• producer

One way to determine the strength of the economy is to watch how consumers and producers are

acting. When can an economy be considered strong?

• when consumer spending is low

• when producer spending is high

• when consumer spending is high

• when production of goods is low

What is a sign of a strong economy?

• Prices of goods and services are rising quickly

• Factories are expanding and restaurants are doing

  well

• Unemployment rate is high since many people are

  looking for jobs

• House prices drop since people are not buying them

As a business owner, Marlon analyzed the economy to determine if it is a good time to open a new

shop. What facts probably helped him realize that it is a good time do it?

• Low unemployment rate and prices are rising slowly

• High unemployment rate and prices are rising

  quickly

• Few homes are being sold and restaurants are

  closing

• Prices aren't changing and factories are shrinking

What is an example of a market economy?

• When government agencies set prices of goods and

  services

• When businesses set prices based on what they

  want to earn

• When the law of supply demand sets prices of

  goods and services

• When consumers only buy goods and services in a

  market not a mall

In a market economy, what is supply?

• Goods and services that are offered by producers

• Goods and services that are offered by consumers

• Consumers who buy goods and services

• Producers who buy goods and services

How does the law of supply and demand affect a consumer?

• It can affect the production costs when consumers

  make things

• It has no affect on the consumer since they are not

  demanding things

• It can affect the price and availability of goods and

  services

• It has no affect on the consumer since they are only

  supplying things

If an item is scarce, how does this affect how it is priced in a market economy?

• The price will decrease

• The price will increase

• The price will not change

• The price will be up and down

Martin has a clothing store and he has managed to get the only pair of sneakers that everyone wants

to buy. How is he most likely going to price these shoes?

• He will keep the price the same as his other shoes to

  be fair

• He will lower the price since demand is very low and

  there is a surplus

• He will raise the price since demand is high and

  supply is scarce

• He will raise the price since demand is very low and

  supply is scarce