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Economics Quiz

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

What is the opposite of scarcity?

a)

Limited Resources

b)

Abundance

c)

Shortage

d)

An economic problem

2.

If the demand for a product increases and supply remains high, producers typically increase the price of their goods.

a)

True

b)

False

3.

Banks deposit money.

a)

True

b)

False

4.

How do banks make money?

a)

Making loans, accepting deposits, apply interest on loans given

b)

Apply interest on loans given, make loans, accept deposits

c)

Accept deposits, make loans, apply interest on loans given

d)

Accept deposits, apply interest on loans given, make loans

5.

Which of the following is NOT an example of human capital?

a)

Higher education

b)

Health

c)

Vacation

d)

Abilities

6.

What is human capital?

a)

Human clothes and shoes

b)

Human skills and knowledge

c)

Human money

d)

Human cars

7.

Producing is cheap in the United States so most sellers produce their products here.

a)

True

b)

False

8.

What is not an external cost?

a)

Environmental degradation

b)

Health problems

c)

Materials needed to create a product

d)

Unemployment due to increased technology

9.

What is a capital good?

a)

any good used to help increase future production

b)

any goods used by consumers and have no future productive use

10.

Wood is an example of a capital good.

a)

True

b)

False

11.

Exports are goods and services that are made in a country and sold outside its borders.

a)

True

b)

False

12.

Why does trade lead to economic interdependence?

a)

Countries rely on one another to supply products that they cannot produce themselves.

b)

Countries want to trade with other countries so that they can become allies.

c)

Countries are afraid of other countries so they decide to trade with them to be safe.

d)

Countries can settle wars with other countries by agreeing to trade with one another.

13.

WTO stands for World Trade Organization.

a)

True

b)

False

14.

Which answer below is NOT one of the roles of the WTO (World Trade Organization)?

a)

Promotes and manages free trade.

b)

Settles disputes between countries.

c)

Manages negotiation for new agreements.

d)

Gives money to the best countries.

15.

Who does the United States import a majority of its goods from?

a)

Japan

b)

China

c)

Chile

d)

India

16.

NAFTA stands for North American Free Trade Agreement.

a)

True

b)

False

17.

What is the best definition of a cost?

a)

Something you give up to obtain something else

b)

Something you receive from someone else

c)

An amount of dollars

d)

An amount of cents

18.

What is the best definition of a benefit?

a)

Something you give away

b)

Something that you receive

c)

Something that meets your wants

d)

Something that you need

19.

Imagine that you were going to have a birthday celebration at your house. In order to do this, you need to miss dance practice to clean the house. Is “missing dance practice to clean for your party” an example of a cost or a benefit?

a)

Cost

b)

Benefit

20.

Imagine your parents bought a brand new car that was very small. Although you don’t love small cars, it’s a lot easier to fit into parking spots than the old van was. Is the fact that “this car is easier to park” an example of a cost or benefit?

a)

Cost

b)

Benefit

21.

Identify whether this is an example of a good or service in the community?: Purchasing fresh green apples

a)

Good

b)

Service

22.

Identify whether this is an example of a good or service in the community?: Getting a haircut at the local hair salon.

a)

Good

b)

Service

23.

Which of the following is an example of a natural resource?

a)

A pair of jeans

b)

A computer

c)

A plant

d)

A kitchen sink

24.

Which is not a role of financial institutions:

a)

Monitor the Monetary System

b)

Allow a higher level of economic activity

c)

Loan Money Out

d)

None of the above

25.

The top five countries that the United States imports goods from are China, Canada, Mexico, Japan, and Germany.

a)

True

b)

False