Grade 10 Final

Abigail and Luna are planning their monthly budget for a fun adventure. Can you help them figure out the main difference between their needs and wants?

• Needs are essential for survival, while wants are non-essential but desirable.

• Needs are always physical items, while wants are emotional desires.

• Wants are necessities for long-term goals, while needs are temporary.

• Needs require financial resources, while wants do not.

Answer explanation

The correct choice highlights that needs are essential for survival, such as food and shelter, while wants are non-essential desires, like entertainment or luxury items. This distinction helps Abigail and Luna prioritize their budget.

In a lively economics class, Isla and Oliver are on a quest to uncover the secrets of production. Can you help them figure out which of the following is NOT a factor of production?

• Land

• Capital

• Taxes

• Labor

Answer explanation

Taxes are not a factor of production. The main factors of production are land, labor, and capital, which are essential for creating goods and services.

Charlotte, along with her friends Abigail and Elijah, is on an exciting quest to choose the perfect college. What is the primary purpose of using the PACED decision-making process in their adventure?

• To make decisions quickly and without evaluation

• To ensure decisions are logical and consider all factors

• To reduce options and simplify decision-making

• To evaluate past decisions for future improvements

Answer explanation

The PACED decision-making process helps Charlotte and her friends ensure their choices are logical and consider all relevant factors, leading to well-informed decisions about their college options.

Michael's factory is buzzing with activity as he and his team, including Mason and Evelyn, work on producing the latest electronic gadgets. Can you spot an example of scarcity in their production process?

• Unlimited supply of natural resources

• Limited access to a critical component for production

• Surplus of products in a market

• Equal availability of all resources

Answer explanation

Scarcity occurs when resources are limited. In this case, 'Limited access to a critical component for production' highlights a shortage that can hinder the production of electronic gadgets, making it the correct choice.

Emma is embarking on an exciting entrepreneurial adventure and needs to tackle some crucial decisions. What are the three basic economic questions she should ponder?

• What to produce? How to distribute? How to price?

• What to produce? How to produce? For whom to produce?

• What to create? When to produce? Where to sell?

• How to design? Who to employ? What to deliver?

Answer explanation

The correct choice is 'What to produce? How to produce? For whom to produce?' These are the fundamental economic questions that guide production decisions in any entrepreneurial venture.

Benjamin is teaming up with his friends Mason, Kai, and Samuel to launch a new business venture. They're curious about the economic playground they'll be diving into. Which of the following best captures the essence of free enterprise?

• An economic system where government owns all resources

• A system where businesses operate in competition with minimal government interference

• A model where production is centrally planned by the government

• A system focusing on communal resource distribution

Answer explanation

The essence of free enterprise is captured by a system where businesses operate in competition with minimal government interference, allowing for innovation and consumer choice.

Elijah loves apples, but he notices that when the price of apples at his local market goes up, he tends to buy fewer apples. What economic principle does this illustrate?

• Demand increases as price increases.

• Demand decreases as price decreases.

• Demand decreases as price increases.

• Demand remains constant regardless of price changes.

Answer explanation

Elijah's behavior illustrates the principle that demand decreases as price increases. When the price of apples rises, he buys fewer, showing that higher prices lead to lower demand for the product.

Emma's bakery is bustling with the sweet aroma of freshly baked cakes, but oh no! She's baked way more than her customers, like Mia and Benjamin, can devour. What happens when supply exceeds demand in this delicious dilemma?

• Prices rise to match the excess supply.

• Prices fall to balance the market.

• Supply continues to grow.

• Demand adjusts to meet supply levels.

Answer explanation

When supply exceeds demand, prices typically fall to encourage more customers to buy the excess goods, thus balancing the market. This is why the correct answer is that prices fall to balance the market.

Emma and Sophia are on a quest to uncover the secrets of economic systems for their class project. Can you help them figure out which of the following is NOT a characteristic of a free enterprise system?

• Private ownership of resources

• Profit motive

• Centralized economic planning

• Competition

Answer explanation

Centralized economic planning is NOT a characteristic of a free enterprise system, which emphasizes private ownership, profit motive, and competition. In contrast, centralized planning involves government control over economic decisions.

Noah is running a lemonade stand, and his friends Zoe, Luna, and Michael are his best customers. What does economic equilibrium represent in this fun lemonade adventure?

• When demand for lemonade exceeds supply

• The price at which the amount of lemonade Noah is willing to sell equals the amount customers like Zoe, Luna, and Michael want to buy

• The highest price customers will pay for lemonade

• The lowest price Noah will accept for his lemonade

Answer explanation

Economic equilibrium in Noah's lemonade stand occurs when the price aligns with the quantity he is willing to sell and the quantity his friends want to buy, ensuring a balance between supply and demand.