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Economics Chapter 1

Total questions: 65

Worksheet time: 2hrs 2mins

Name
Class
Date
1.
Economics is...
a)
studying goods, services, and how people can get them.
b)
studying trees, bushes, and other plants.
c)
studying animals and wildlife.
d)
studying food, and how food is made.
2.
Which of these is a good?
a)
Librarian
b)
Teacher
c)
Computer
d)
Mechanic
3.
Which of these provides a service?
a)
Pumpkins
b)
Mailman
c)
Turtles
d)
Cars
4.
The people who grow or create goods are called...
a)
producers
b)
consumers
c)
banker
d)
traders
5.
The people who buy goods and services are called...
a)
producers
b)
consumers
c)
banker
d)
traders
6.
Which of the following is a need?
a)
Crayons
b)
Video Games
c)
Basketballs
d)
Houses
7.
If video games are not a need, what are they?
a)
a wish
b)
a dream
c)
a want
d)
a necessity
8.
All people have the same wants and needs.
a)
True
b)
False
9.
How do most people obtain goods or services today in America?
a)
Money
b)
Trading
c)
Bartering
10.
I want to buy new shoes for $20. I only have $5. How can buy the shoes?
a)
Pay $5
b)
Save my money
c)
Trade my old shoes for the new shoes
11.

Which of these examples is a service?

a)

Mr. Farr sells guitars.

b)

Mr. Swenson gives art supplies to consumers.

c)

Coach provides lessons for different sports.

d)

Ms. Miller writes books.

12.

Jenny has hundreds of stuffed animals to sell. The stuffed animals are considered the _________.

a)

supply

b)

demand

c)

buyer

d)

seller

13.

Why would a business want to spend their money to invent new items?

a)

They can save money

b)

They will fix broken items

c)

They can buy cool goods

d)

They can make new goods to sell

14.

Tyler wants to help homeless people. He decides to get friends together to put together boxes with supplies in them. Tyler and his friends then give the supply boxes to people in need. What are they doing?

a)

They are spending the supplies.

b)

They are donating the supplies.

c)

They are earning the supplies.

d)

They are borrowing supplies.

15.

What is supply?

a)

the amount of an item you have

b)

how many people want your good/service

c)

the money you have left over after you paid your bills

d)

none of these

16.

What is demand?

a)

the amount of an item you have

b)

how many people want your good/service

c)

the money you have left over after you paid your bills

d)

none of these

17.

What is profit?

a)

the money you have left over after you paid your bills

b)

how many people want your good/service

c)

the amount of an item you have

d)

none of these

18.

What does it mean when you save money?

a)

You buy a new outfit.

b)

You put money away for later.

c)

You invent a new good.

d)

You give money to help animals.

19.

Opal saved money in the bank. From doing this, she earned _______.

a)

Interest

b)

Invest

20.

Some companies _______ in inventions that will help them compete with other companies.

a)

Interest

b)

Invest

21.

Apple saved some of their money to create the new iPhone X. This choice means Apple _______ in their company.

a)

Interest

b)

Invest

22.

Ms. Miller put $200 into her account, but now she has $230. This is because of ______.

a)

Interest

b)

Invest

23.

Which of the following will increase your profit for selling hot chocolate?

a)

Use expensive materials

b)

Lower the price

c)

Give each buyer more hot chocolate

d)

Use cheaper materials

24.

Money that you put in a savings account______.

a)

can never be spent

b)

can earn interest

c)

will be stolen

d)

is going to be donated

25.

Which of these is a way that a business can use its money wisely/invest in their business?

a)

It can use more expensive resources.

b)

It can invent new goods.

c)

It can buy machines to make goods.

d)

All of the above

26.

iPhone X just came out and many people want it. What will happen to the price?

a)
b)
27.

A new bakery comes to town. Now there are more options for a bakery. What will happen to the price?

a)
b)
28.

For the market, Opal is selling brownies. Dyamonde is also selling brownies. What will happen to the price?

a)
b)
29.

Halloween is almost here! The supply of candy is going down. What will happen to the price?

a)
b)
30.
Trading something for something else - no currency involved
a)
demand
b)
barter
c)
goods
d)
market
31.
Tools we use to make products
a)
capital resources
b)
human resources
c)
natural resources
d)
entrepreneurs
32.
A person who buys goods and services
a)
consumer
b)
entrepreneur
c)
resource
d)
currency
33.
another word for money
a)
barter
b)
economics
c)
currency
d)
price
34.
How much people want something
a)
supply
b)
demand
35.
The making, buying and selling of goods and services
a)
economics
b)
inflation
c)
market
d)
barter
36.
Individuals who come up with a new idea for a good or service, then they make it a reality
a)
resource
b)
human resources
c)
consumer
d)
entrepreneur
37.
The resources required to make a product (good or service)
a)
economics
b)
consumption
c)
four factors of production
d)
scarcity
38.
Something we pay for that we can touch
a)
goods
b)
services
39.
A general increase in prices
a)
price
b)
inflation
c)
scarcity
d)
demand
40.
Something we use from nature
a)
natural resource
b)
human resource
c)
capital resource
d)
entrepreneur
41.
The amount of money we pay for a good or service
a)
currency
b)
price
c)
inflation
d)
economics
42.
Something we use
a)
resource
b)
scarcity
c)
demand
d)
supply
43.
The idea that resources are limited; we don't have an unlimited supply of what we want
a)
scarcity
b)
supply
c)
demand
d)
inflation
44.
Something we pay to use fora certain amount of time
a)
services
b)
goods
45.
The study of resources such as money, materials, and labor
a)
economics
b)
services
c)
producers
d)
goods
46.
What is a need?
a)
Nothing
b)
Something you have to have to live
c)
Something you would like to have
d)
Ice cream
47.
What is a service?
a)
A job
b)
Something someone does for you
c)
A need
d)
Something you do for another person
48.
What is a want?
a)
A person
b)
Something you would like to have but don't need to live
c)
Purple
d)
Something you need to live
49.
Which of the following is not a service?
a)
Dry Cleaner
b)
Car Wash
c)
Clothes
d)
Babysitter
50.

Which of the following is one of the five factors of production?

a)

productivity

b)

goods

c)

entrepreneurship

d)

services

51.

As an economic term, land includes __________________.

a)

work people do

b)

natural resources

c)

machinery

d)

knowledge

52.

Economic models are useful because they _________________.

a)

show the way people react to changes in the economy

b)

provide every detail about a problem to be studied

c)

judge the value of economic events

d)

make testing hypotheses unnecessary

53.

These people take risks in order to reap profits.

a)

Analysts

b)

Stock brokers

c)

Entrepreneurs

d)

Economists

54.

To an economist, a want is _________________________.

a)

something you do not have

b)

something other than a basic survival need

c)

something you must have to survive

d)

something most people have

55.

Which of the following describes what economists do?

a)

predict which policies will be good or bad

b)

consider every detail of a problem

c)

offer solutions to economic problems

d)

rely on public opinion

56.

Different schools of economic thought exist because _____________.

a)

economics deals with values

b)

personal beliefs influence how economists apply facts to theories

c)

political leaders determine economic theories

d)

economists evaluate different kinds of data

57.

In a trade-off, opportunity cost is the value of the ________________.

a)

factors of production

b)

action that was chosen

c)

scarce resources

d)

next best alternative

58.

The need to make choices arises because ________________.

a)

some things are not limited

b)

everything that exists is limited

c)

shortages are a constant situation

d)

people need to share their resources

59.

The basic problem of economics is ________________.

a)

scarcity

b)

lack of choice

c)

shortages

d)

overabundance

60.

Tangible objects that can satisfy people's wants.

a)

land

b)

labor

c)

capital

d)

goods

61.

Advance in knowledge leading to new and improved goods and services and better ways of producing them.

a)

land

b)

labor

c)

capital

d)

technology

62.

The study of how individuals and societies make choices about ways to use scarce resources to fulfill their needs and wants.

a)

macroeconomics

b)

microeconomics

c)

economics

d)

technology

63.

Human effort directed toward producing goods and services.

a)

land

b)

labor

c)

goods

d)

capital

64.

Value of the next best alternative given up for the alternative that was chosen.

a)

trade-off

b)

opportunity cost

c)

time

d)

labor

65.

Previously manufactured goods used to make other goods and services.

a)

land

b)

labor

c)

capital

d)

technology