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Economics Review

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

The system in which goods and services are bought and sold is called

a)

scarcity.

b)

a market

c)

economy

d)

competition

2.

Why is this called a market?

a)

It is outdoors.

b)

It has a lot of fruit.

c)

It is interesting to visit.

d)

It brings buyers and sellers together.

3.

Which of the following people is earning money by providing a service?

a)

Anthony grows fruit to sell.

b)

Laura sews stuffed animals.

c)

Carl sells lemonade he makes.

d)

Marie teaches a third grade class.

4.

Which of the following will increase the profit at a lemonade stand?

a)

using cheaper lemons

b)

using more ingredients

c)

selling during cold weather

d)

giving glasses away for free

5.

If consumers can't get what they need, this creates...?

a)

scarcity

b)

interest

c)

supply

d)

goods

6.

What is my best option when looking to buy tomatoes?

a)

high price and fresh tomatoes

b)

low price and fresh tomatoes

c)

low price and small/bruised tomatoes

d)

high prices, but small tomatoes

7.

If you save money, you are

a)

setting it aside for later.

b)

using it on things you want now.

c)

inventing new machines.

d)

buying expensive toys.

8.

Money that you put in a savings account

a)

can be stolen.

b)

earns interest.

c)

is gone forever.

d)

is put in a piggy bank.

9.

Which of the following is a way that a business can use its money wisely?

a)

It can use more expensive resources.

b)

It can buy machines to make goods.

c)

It can decide not to fix things that are broken.

d)

all of the above

10.

At Christmas the seller sets the price high for the latest unicorn toy because there are many buyers. This is apart of the concept of...

a)

supply and demand

b)

profit and incentive

c)

invest and spend

d)

budget and donate

11.

What is a budget?

a)

a plan for how to use money

b)

a place where you can save money

c)

a list of goods you need to buy

d)

a type of work that earns you money

12.

People can donate some of the money they earn. Donating is

a)

throwing a party for your friends.

b)

giving money to someone in need.

c)

buying something expensive for yourself.

d)

saving your money by putting it in the bank.

13.

Peter saved money in a bank. The money he saved earned ( interest / invest )

a)

interest

b)

invest

14.

A business wisely chooses to fix a broken machine. This is an example of...

a)

interest

b)

invest

15.

A business buys inventions that will help them compete with other companies. This is an example of...

a)

interest

b)

invest

16.

Jamie put $20 in her savings account, but now she has $21. This is because of ( interest / investing ).

a)

interest

b)

investing