Spending, Saving, and Donating Test

In a small town, there were two bakeries. If one bakery shuts down, what is the most likely effect on the price of baked goods in the town?

• A. Prices will rise.

• B. Prices will fall.

• C. Prices will remain unchanged.

If the demand for a product is low, what will the seller most likely do?

• Lower the price

• Raise the price

• Keep the price the same

Which scenario is likely to cause an increase in the price of a product?

• There is an abundance of apples in the market.

• More people want concert tickets than there are tickets available.

• Many companies are producing the same smartphone model.

A new toy was released in stores today. The toys sold out quickly, leaving many customers without one. More units are expected to arrive soon. If the demand continues to exceed supply, what is likely to happen?

• The price of the toys could increase

• Customers will lose interest in the toy.

• The production cost of the toy could rise.

What impact will an increase in demand for lawn mowing services have on the price Sam can charge?

• Sam can increase his lawn mowing price.

• Sam must decrease his lawn mowing price.

• Sam will have to stop mowing lawns.

• The price Sam charges will remain unchanged.

Which situation BEST illustrates the concept of scarcity?

• A drought has led to a shortage of drinking water.

• New smartphones are being released every year.

• A factory has an excess of unsold products.

Which statement BEST describes what scarcity is?

• A. People buy more products than they need.

• B. People do not earn enough to meet their needs.

• C. People want more resources than there are available.

How can a community manage its limited natural resources effectively?

• By consuming resources rapidly

• By reducing usage and sharing with each other.

• By relocating to another area

• By purchasing additional resources

What creates the demand for products or services?

• The profit

• The consumer's wants or needs

• Supply

• The economy

If there is a high supply of a specific item and a low demand for that specific item, what will most likely happen to the price of the item?

• It will increase by a large amount

• It will increase by a small amount

• It will decrease by a large amount

• It will not affect the price.