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Free Enterprise System Vocabulary

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

______ is how much of a good there is for people to buy.

a)

demand

b)

supply

c)

scarcity

d)

surplus

2.

_____ is the amount of a good or service that consumers are willing to purchase.

a)

demand

b)

surplus

c)

scarcity

d)

supply

3.

What is the money left over after a business pays all its expenses called?

a)

spendings

b)

earnings

c)

cost

d)

profit

4.

A free enterprise system means __________.

a)

The government DOES NOT tell the people what they can make or sell.

b)

The government DOES tell the people what they can make or sell.

5.

What is the situation when the demand for something is higher than the supply?

a)

demand

b)

scarcity

c)

supply

6.

______ refers to obtaining money in the form of a loan or credit card.

a)

spending

b)

borrowing

c)

saving

d)

income

7.

An example of a good is ______.

a)

swim lessons

b)

a lawn service

c)

a haircut

d)

a video game

8.

An example of a service is ______.

a)

clothes

b)

food

c)

a haircut

d)

a video game

9.

What do you call the added cost, you have to pay back, when you borrow money?

a)

savings

b)

interest

c)

surplus

10.

What is one of the primary ways people can earn money?

a)

debt

b)

labor

c)

interest

11.

What do you call the amount of money that is earned as a result of labor?

a)

saving

b)

donations

c)

income

d)

spending

12.

What is the act of giving money, goods, or services to businesses without expecting something in return?

a)

budget

b)

donating

c)

spending

d)

earning

13.

Wendy went the mall and bought a Squishmallow. This is an example of ______.

a)

budget

b)

donating

c)

spending

d)

earning

14.

Bob is mowing lawns this summer. He is paid $20 per lawn. This is an example of _____.

a)

budget

b)

donating

c)

spending

d)

earning

15.

Allison wants a new bike that costs $75. Each week she is ______ $10 from her earnings.

a)

saving

b)

borrowing

c)

spending

d)

earning

16.

A plan for saving and spending money is called a _______.

a)

saving

b)

borrowing

c)

budget

d)

scarcity