Economic Choices - Week 25 Assessment

Income is money that someone earns by _________________

• playing

• sleeping

• working

• eating

It is important for people to earn an income because:

• they can purchase goods and meet their needs.

• it allows them to avoid all responsibilities.

• it guarantees happiness.

• it makes them famous.

Complete the graphic organizer. labels: goods; income Cause: People work for an __________ Effect: to be able to purchase __________.

• Cause: income

  Effect: goods

• Cause: goods

  Effect: income

• Cause: purchase

  Effect: work

• Cause: work

  Effect: purchase

I earned money by mowing lawns and used it to buy a video game. How was the money earned?

• By mowing lawns

• By selling lemonade

• By babysitting

• By washing cars

What is the term for keeping income?

• budgeting

• earning

• saving

• spending

What is the definition of 'save'?

• To keep money

• To spend money

• To borrow money

• To waste money

What is the definition of 'spend'?

• To buy goods or services

• To save money

• To earn money

• To borrow money

What is the definition of 'earn'?

• To work for money

• To spend money

• To borrow money

• To lose money

Sasha wants a game that costs $25. She earned $10 doing chores. What should she do?

• Earn more money.

• Buy a different game.

• Ask her friends for money.

• Give up and not buy anything.

Match the term to the correct action: earn -

• Do work or start a business.

• Spend money on shopping.

• Relax and watch TV.

• Borrow money from a friend.