Economics Unit Test – Scenario-Based Multiple Choice

Read each scenario carefully. Select the best answer from the options provided. Economic Goods vs Services At a school fundraiser, students sell handmade bracelets and also offer face painting for attendees. Which is an economic service?

• Handmade bracelets
• Face painting
• Selling tickets
• Donating materials

Read each scenario carefully. Select the best answer from the options provided. Economic Resources A bakery needs flour, ovens, employees, and a business owner to operate. Which of these is an example of capital as an economic resource?

• Flour
• Employees
• Ovens
• Business owner

Economics & Economic Activities A town organizes a market day where local farmers sell fruits and vegetables. This is an example of which economic activity?

• Production
• Marketing
• Distribution
• All of the above

Economic Utilities A coffee shop brews drinks and makes them available in convenient to-go cups. Which utility is being created?

• Form utility
• Place utility
• Time utility
• Possession utility

Supply and Demand During winter, the price of snow shovels rises because more people want them. This scenario illustrates:

• Law of Supply
• Law of Demand
• Market equilibrium
• Private enterprise

In a country where the government decides what products are made and how much to produce, which economic system exists?

• Market economy
• Command economy
• Mixed economy
• Traditional economy

Private Enterprise A tech entrepreneur starts a new app business without government interference. This is an example of:

• Command economy
• Private enterprise
• Public enterprise
• Monopoly

Factors Affecting Profit A caf increases sales by introducing a new pastry but also pays higher rent. Which combination affects profit?

• Revenue and costs
• Taxes only
• Competition only
• Government regulations only

Factors Affecting Business Risk A small clothing store faces the possibility of losing money because a new competitor opens nearby. Which factor is increasing business risk?

• Stable economy
• High competition
• Skilled employees
• Low costs

Competition Two local ice cream shops lower prices to attract the same customers. This is an example of:

• Monopoly
• Direct competition
• Indirect competition
• Government regulation