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Ch. 4 - Economics Grade 4 (Pearson)

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

Which items are "goods"?

a)

car salesman, nurse, teacher

b)

car, refrigerator, bicycle

c)

car, medicine, doctor

d)

police officer, governor, newspaper

2.

Which items are "services"?

a)

car salesman, nurse, teacher

b)

car, refrigerator, bicycle

c)

car, medicine, doctor

d)

police officer, governor, newspaper

3.

The USA operates in a ________________ economy.

a)

demand

b)

market

c)

command

d)

supply

4.

What sector of the economy includes actors?

a)

service sector

b)

tourism sector

c)

entertainment sector

d)

manufacturing sector

5.

In a free enterprise system, what is the answer to the economic question, "how should goods and services be produced?

a)

The should be produced by the government.

b)

The should be produced by the largest sector.

c)

They should be produced by the producers in the market.

d)

The should be produced by the consumers in the market.

6.

If supply of a product is low and demand high the price will probably ______________.

a)

fall

b)

stay the same

c)

rise

7.

If the supply of a product is greater than the demand the price of the product will probably _____________.

a)

fall

b)

stay the same

c)

rise

8.

For a consumer, which is part of making an economic choice?

a)

The consumer makes goods and services to sell to others.

b)

The consumer moves to a place that has very few businesses.

c)

The consumer purchases everything he or she needs or wants.

d)

The consumer weighs his or her needs and wants before spending money.

9.

Opportunity cost is ________________.

a)

what product you didn't want to begin with

b)

what you give up when you chose one thing over another

c)

the most popular product on the market

d)

the product you chose over another

10.

Which example shows how a business can make a profit?

a)

produce a toy for $10 and sell it for $5

b)

produce a toy for $5 and sell it for $5

c)

produce a toy for $5 and sell it for $15

d)

produce a toy for $0 and sell it for $0

11.

A successful business must create a product or service that has enough __________ to meet a high _________.

a)

supply; price

b)

demand; profit

c)

profit; demand

d)

supply; demand

12.

One effect of increasing productivity is lower cost of a product. What is another effect?

a)

consumers have more money to spend on other products

b)

consumers purchase a smaller quantity of the product

c)

demand for the product decreases

d)

supply of the product decreases

13.

A prediction is __________________.

a)

a guess informed by what you already know

b)

based on analyzing images

c)

an educated guess based on certain clues

d)

a guess that is usually funny or humorous

14.

Productivity is defined as _____________________.

a)

the cost of producing a product

b)

an amount a company can produce with a certain amount of labor

c)

a government service

d)

an amount of supply of goods and services

15.

What causes great productivity ? (choose all that apply)

a)

specialization

b)

division of labor

c)

overtime

d)

high supplies

16.

What is the effect when a business raises its prices too high? (choose all)

a)

lower sales

b)

greater sales

c)

consumers may buy from competitors with lower prices

d)

the business may fail

17.

Which is an example of a negative incentive?

a)

The cost of a hotel room goes up the longer you wait to book it.

b)

An ice cream shop opens up next to your school.

c)

A famous movie star appears in a commercial for gym shoes.

d)

A movie theater is offering a "buy-one-get-one-free" offer.

18.

Which expresses the meaning of scarcity?

a)

Working at a job like babysitting can earn you money.

b)

The amount of something you want or need may be limited.

c)

When you buy something, you give up the value of something else.

d)

Businesses try to get you to buy something by putting a product on sale.