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Economics #1

Total questions: 17

Worksheet time: 11mins

Name
Class
Date
1.

Cassie is going to start a business and can buy either wood or cloth. If she buys wood, she can make toy boats. If she buys cloth, she can make dolls. What is the opportunity cost of Cassie’s buying cloth?

a)

The cost of making toy boats and dolls

b)

The opportunity to make toy boats

c)

The cost of starting a business

d)

The opportunity to make dolls

2.

Based on the map above, what is a major source of income for Ohio?

a)

Mining

b)

Tourism

c)

Industry

d)

Fishing

3.

Tom, the owner of Tom’s Pizza, recently bought a faster dough maker and a larger pizza oven for his shop. His sales have doubled. Which statement describes why Tom decided to buy a faster dough maker and larger pizza oven?

a)

As a producer, he invested in capital goods to increase production

b)

As a producer, he paid less for ingredients to make a profit

c)

As a consumer, he wanted to have a successful restaurant

d)

As a consumer, he wanted to spend less time cooking

4.

Which conclusion can be made from the data in the two graphs above?

a)

Income changed more than unemployment did.

b)

There were many wealthy people from 1928 to 1933.

c)

Average income decreased as unemployment increased.

d)

Unemployment increased the most between 1932 and 1933.

5.

A company makes a popular fruit juice. It makes cough drops. A main ingredient in both products is oranges. Because of a drought, the company has enough oranges to produce only fruit juice or cough drops. The company chooses to make fruit juice. What is the opportunity cost of the company’s decision to make fruit juice?

a)

The demand for fruit juice will increase.

b)

The company will earn less money selling fruit juice.

c)

The farmers will decrease the amount of oranges that they grow.

d)

The company will be unable to earn money by selling cough drops.

6.

What does an increase in supply of an item usually mean for consumers?

a)

The item will be bought by fewer customers.

b)

The item will be removed from the market.

c)

The item will be difficult to buy.

d)

The item will be lower in price.

7.

How does division of labor affect production?

a)

It helps them make products faster and for less money.

b)

It slows down production so things can be made more efficiently.

c)

It lowers the quality and safety of products.

d)

It raises the price and quality of products.

8.

Using income for purchases, expenses, and debt

a)

Spending

b)

Savings

c)

Services

d)

Goods

9.

A product that is brought into a country to be sold is called an import.

a)

True

b)

False

10.

The money people earn for their work.

a)

Deposit Ticket

b)

Endorse

c)

Income

d)

Personal Check

11.

When the demand for a product is very high and is increasing, but the seller does not have enough of the product, the price goes

a)

Up

b)

Down

c)

Stays the same

12.

The iPhone 7 came out a few years ago, the demand for it is down, so the price is now...

a)

Up

b)

Down

c)

The Same

13.

Scarcity is

a)

When a consumer is afraid to spend money.

b)

When there is a surplus of goods.

c)

When there is not enough of something for everybody.

d)

When there is not enough money in the bank.

14.

You went to the store and noticed that the price of something you have wanted to buy has gone up. Why did this happen?

a)

The demand for the item increased.

b)

The demand for the item decreased.

c)

The number of items available to buy decreased.

d)

The number of items available to buy increased.

15.

How can a worker get more money?

a)

Gaining new knowledge, skills, and experiences.

b)

Getting a different job.

c)

Quitting their job.

d)

Trading jobs with somebody.

16.

The class took a vote on their favorite sports and created a pie graph. How many total students are in the class?

a)

24

b)

25

c)

10

d)

28

17.

When you spend your money to buy a piece of candy, you are acting as a...

a)

Producer

b)

Importer

c)

Consumer

d)

Exporter