Economics-Level 2

Which of the following is an example of a good?

• A haircut

• A book

• A dance class

• A car wash

What is the main difference between a need and a want?

• Needs are optional, wants are necessary

• Needs are necessities, wants are desires

• Needs are desires, wants are necessities

• Needs and wants are the same

Which of the following is an example of a service?

• A loaf of bread

• A pair of shoes

• A doctor's appointment

• A toy car

What does a consumer do in a market?

• Produces goods

• Buys goods and services

• Sells goods

• Lends money

Which of the following is an example of borrowing?

• Buying a toy with cash

• Promising to repay a loan

• Selling lemonade

• Saving money in a bank

What is the role of a producer in the economy?

• To consume goods

• To produce goods and services

• To borrow money

• To pay taxes

Which of the following is an example of credit?

• Paying for groceries with cash

• Using a credit card to buy a book

• Receiving a gift

• Earning a salary

What is the purpose of taxes?

• To save money for the future

• To pay for government services

• To increase personal income

• To reduce spending

Which of the following is an example of spending?

• Earning interest on savings

• Buying a new bicycle

• Receiving a paycheck

• Lending money to a friend

What is barter?

• Trading goods or services for money

• Trading goods or services without money

• Saving money in a bank

• Borrowing money from a bank