Economics Daily Grade 2 Review

Jewel wants to use her money to buy a skateboard and a bicycle. She can only afford one of them. She decides to buy a skateboard. Which of the following is one of Jewel's opportunity costs?

• owning a bicycle

• riding a skateboard

• earning money in the future

• spending money at the store

Donald lives in a small town in Georgia. His town has no factories. One day, Donald sees a commercial for a new pair of basketball shoes. He goes to a shoe store near his house and finds the shoes. What is the MOST LIKELY reason that the store has the shoes?

• The shoes were made by the local government using taxes.

• The shoes were made by workers at the store and put on sale.

• The shoes were made by the local basketball team and sent to the store.

• The shoes were made in another part of the country and sent to the store.

Lilly has been saving up her money for a new PS5. She has enough to buy it, but her old Playstation still works just fine. What is lilly's opportunity cost if she decides to go ahead and buy the new PS5?

• Lilly will have a new PS5.

• Lilly will have a small amount of money in her savings.

• Lilly wil have two playstations that she can play with.

• Lilly will have more than she did before buying the new PS5.

Which of the following are true about supply and demand?

• 1. If supply is equal to the demand, then prices are higher. 

• 1. If supply is greater than demand, then prices are higher. 

• If supply is greater than demand, then prices are lower.

• If demand is greater than supply, then prices are lower.

Trish had a pen, but she wanted a pencil.  Greg had a pencil, but wanted a pen.  They voluntarily exchanged the pen and the pencil with each other. Who benefited from this exchange?

• Both Trish and Greg benefited

• Only Trish benefited

• Only Greg benefited

• Neither Trish nor Greg benefited

Food in restaurants like Chick-fil-A and McDonald’s are allocated, or distributed, using _________.

• taxes

• price

• consumer

• lottery

Use the image to answer the question.

Which of the following BEST completes the boxes?

• Mike buys the Xbox 360; Diego makes the Xbox 360.

• Jamal earns an allowance; Larry works for his income. 
  

• 23 Miguel saves money; Julio spends money.

• Karen makes slime; Carly buys the slime.

1. Evan is selling lemonade at his lemonade stand. Around lunchtime, a large line forms at his stand. What should Evan do to the price of his lemonade?

• Keep the price the same

• Increase the price of the lemonade

• 1. Decrease the price of the lemonade

• 1. Drink the lemonade himself

One of the student clubs at Maria's school is running a market to raise money. Maria goes to the market with her friend Paul.  Maria buys a baseball hat, Paul buys a skateboard. What are the baseball hat and the skateboard?

• They are services.

• 1. They are consumers.

• They are producers.

• 1. They are goods.

1. Why is it important that goods are made all over the world?

• 1. It allows businesses to charge higher prices for goods. 

• 1. It makes businesses charge consumers the lowest price possible.

• 1. It gives people access to goods that their community does not make.

• It helps governments grow rich by selling goods.