Economics-Level 3

Imagine you are a producer who makes toys. You want to sell your toys in a market. What is the best strategy to ensure you make a profit?

• Sell the toys at a price lower than the cost to make them.

• Sell the toys at a price higher than the cost to make them.

• Give the toys away for free.

• Only sell the toys to your friends.

You have $10 to spend at the market. You want to buy a book that cost $8 and a toy that costs $5. How can you plan your spending?

• Buy both the book and the toy.

• Buy only the book.

• Buy only the toy.

• Earn $3 from babysitting so you can buy both.

If you are a consumer who wants to buy a new game, but you also need to save money for a school trip, how would you decide what to do?

• Buy the game and forget about the trip.

• Save all your money for the trip.

• Plan to save some money each week for the trip and buy the game later.

• Ask your parents to buy the game for you.

You want to start a lemonade stand. What is a strategic way to attract more customers?

• Set up your stand in a quiet alley.

• Set up your stand in a busy park.

• Only sell lemonade to your family.

• Charge a very high price for each cup.

If you borrow a book from the library, what is your responsibility?

• Keep the book forever.

• Return the book on time and in good condition.

• Sell the book to someone else.

• Write in the book and make notes.

You have a choice to either barter your old toys for new ones or sell them for money. What should you consider when making your decision?

• How much money you can get for the toys.

• How many new toys you can get in exchange.

• Whether you need money or new toys more.

• All of the above.

If you are a producer and you notice that consumers are not buying your product, what should you do?

• Stop producing the product immediately.

• Lower the price or improve the product.

• Increase the price to make more profit.

• Ignore the consumers and keep producing.

You want to save money to buy a new bike. What is a good plan to achieve this goal?

• Spend all your allowance on snacks.

• Save a portion of your allowance each week.

• Ask your parents to buy the bike for you.

• Forget about saving and hope for a gift.

If you are a consumer who wants to buy a service, like a haircut, what should you consider before making a decision?

• The cost of the service.

• The quality of the service.

• The location of the service.

• All of the above.

You have a choice to either spend your money on a new toy or save it for a future need. What is a strategic way to make this decision?

• Spend all your money now.

• Save all your money for the future.

• Consider how much you want the toy and how important the future need is.

• Ask your friends what they would do.