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Worksheets

Economics Test Review

Total questions: 45

Worksheet time: 23mins

Name
Class
Date
1.

You vacuum the house, your sister cleans the bathroom, and your father folds the laundry. This is an example of:

a)

productive capacity

b)

scarcity

c)

division of labor

d)

opportunity cost

2.

The grocery store normally gets 700 pounds of bananas. This week it gets 2,000 pounds of bananas. What is likely to happen next?

a)

people will buy fewer bananas

b)

the price of bananas will go down

c)

the price of bananas will go up

d)

the store will stop selling bananas

3.

How much sales tax does a poor person pay on a car compared to a rich person?

a)

the rich person pays more tax

b)

the poor person pays more tax

c)

they both pay the same amount

d)

neither one pays anything

4.

What is one reason an entrepreneur might take risks?

a)

she likes working for other people

b)

she does not have new ideas

c)

she does not want to lose money

d)

she wants to work for herself

5.

Most people in the United States

a)

live beyond their means

b)

pay for college out of savings

c)

save enough to stop working

d)

live within their means

6.

People usually borrow money from banks to buy

a)

clothes

b)

furniture

c)

a home

d)

food

e)

water

7.

Spending money the right way takes knowledge and practice. What is the MOST likely reason that people comparison shop?

a)

to pay more for what they buy

b)

to get the best deal

c)

to borrow money

d)

to budget

8.

Saving money in the bank earns interest for your account. Why does the bank pay interest?

a)

because you cannot use your money for a long time

b)

because it is hard to get your money out of the bank

c)

because it is using your money when you do not

d)

because the bank is not open on most days

9.

Companies in the U.S. and Canada often buy and sell things to one another. This is an example of

a)

supply and demand

b)

voluntary trade

c)

division of labor

d)

entrepreneurism

10.

What is the MAIN benefit of having a checking account?

a)

carrying cash wherever you go

b)

keeping your cash safe from theft or loss

c)

being able to borrow money from the bank anytime

d)

saving up money for a large purchase in the future

11.

McDonald's sells hamburgers, while Nike sells shoes. This is an example of:

a)

supply and demand

b)

recession

c)

specialization

d)

opportunity costs

12.

When prices are high, demand goes down. When prices are low, demand goes up. If there is a shortage of basketballs on the market, the price of basketballs

a)

should go up

b)

should go down

c)

should stay the same

d)

should be cut in half

13.

The store has decided to raise the price of televisions. What do you think will happen next?

a)

fewer people will buy televisions from this store

b)

fewer people will sell televisions at this store

c)

more people will buy televisions at this store

d)

no one will buy televisions at this store

14.

What is the government’s role in the economy?

a)

to collect taxes

b)

to buy products

c)

to work

d)

to save

15.

What is your role in the economy?

a)

to work

b)

to save money

c)

to spend money

d)

to pay taxes

16.

What is a business's role in the economy?

a)

collect taxes

b)

produce and sell goods

c)

consume goods

d)

work

17.

A limited amount of money that someone earns for their work?

a)

budget

b)

income

c)

opportunity cost

d)

comparison shop

18.

A plan for how much money will be spent?

a)

income

b)

credit card

c)

labor

d)

budget

19.

If you want something not in your budget the best plan would be...

a)

save for what you want

b)

borrow money from your parents

c)

use a credit card

d)

get a loan from the bank

20.

Which is not a main reason to save money?

a)

retirement

b)

things you want

c)

taxes

d)

emergencies

21.

What you give up by choosing one way of using resources instead of another.

a)

opportunity cost

b)

comparison shopping

c)

item analysis

d)

labor

22.

Looking for items that are similar to the one you want to buy.

a)

opportunity cost

b)

income

c)

budget

d)

comparison shop

23.

When you work to make money your work is called?

a)

income

b)

labor

c)

budget

d)

savings

24.

When you work to make money, your money is called?

a)

income

b)

labor

c)

budget

d)

shopping

25.

The total amount of things a group of people can produce?

a)

maximum capacity

b)

productive capacity

c)

inductive capacity

d)

capital goods

26.

Something that can be used to improve productive capacity.

a)

employer

b)

surplus

c)

budget

d)

resource

27.

Tools needed for making things.

a)

division of labor

b)

specicalization

c)

capital goods

d)

entrepreneur

28.

Different workers doing different parts of a job.

a)

division of labor

b)

opportunity cost

c)

income

d)

budget

29.

This is determined by how much a product costs and how difficult it is to get?

a)

cost

b)

price

c)

amount

d)

supply

30.

When a product is hard to find.

a)

supply

b)

scarce

c)

surplus

d)

demand

31.

When there is more of a product than is wanted by the consumer.

a)

supply

b)

surplus

c)

demand

d)

scarcity

32.

Which of the following are not capital goods?

a)

tractors

b)

computers

c)

people

d)

machinery

33.

The total amount of a product that producers are willing and able to produce.

a)

surplus

b)

demand

c)

scarcity

d)

supply

34.

A business that makes a product.

a)

employer

b)

producer

c)

consumer

d)

competition

35.

A person who buys a product.

a)

buyer

b)

competition

c)

consumer

d)

government

36.

Rivalry between two or more different companies creates...

a)

businesses

b)

free market economy

c)

problems

d)

competition

37.

The United States has which type of economy?

a)

command

b)

demand

c)

free market

d)

supply

38.

When people trade with each other once they both agree.

a)

voluntary exchange

b)

sales tax

c)

income

d)

goods and services

39.

A tax on the goods that you buy?

a)

income tax

b)

supply tax

c)

goods tax

d)

sales tax

40.

A tax on the money that you earn?

a)

Income tax

b)

sales tax

c)

business tax

d)

credit tax

41.

An account in which you put money in the bank so you take it out over time?

a)

bank account

b)

checking account

c)

savings account

d)

money market account

42.

What is a percentage of the total amount of money?

a)

loan

b)

account

c)

interest

d)

income

43.

Money that you borrow from the bank.

a)

income

b)

interest

c)

savings

d)

loan

44.

This works like a credit card, but the money is withdrawn from your account immediately.

a)

savings account

b)

debit/ ATM card

c)

gift card

d)

cash

45.

Most trades in the United States are for..

a)

supply and demand

b)

free market economy

c)

goods and services

d)

resources and technology