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WorksheetsSmart Economics Review
Total questions: 38
Worksheet time: 42mins
A(n) (a) has the role of buying goods and paying for services in an economy.
When someone opens a cupcake bakery, what role would they play in the economy?
researcher
analyst
economist
producer
One way to determine the strength of the economy is to watch how consumers and producers are acting. An economy can be considered strong when (a)
What is a sign of a strong economy?
Prices of goods and services are rising quickly
Factories are expanding and restaurants are doing well
Unemployment rate is high since many people are looking for jobs
House prices drop since people are not buying them
As a business owner, Marlon analyzed the economy to determine if it is a good time to open a new shop. What facts probably helped him realize that it is a good time do it?
Low unemployment rate and prices are rising slowly
High unemployment rate and prices are rising quickly
Few homes are being sold and restaurants are closing
Prices aren't changing and factories are shrinking
What is an example of a market economy?
When government agencies set prices of goods and services
When businesses set prices based on what they want to earn
When the law of supply demand sets prices of goods and services
When consumers only buy goods and services in a market not a mall
In a market economy, supply is (a)
How does the law of supply and demand affect a consumer?
It can affect the production costs when consumers make things
It has no effect on the consumer since they are not demanding things
It can affect the price and availability of goods and services
It has no effect on the consumer since they are only supplying things
If an item is scarce, how does this affect how it is priced in a market economy?
The price will decrease
The price will increase
The price will not change
The price will be up and down
Martin has a clothing store and he has managed to get the only pair of sneakers that everyone wants to buy. How is he most likely going to price these shoes?
He will keep the price the same as his other shoes to be fair
He will lower the price since demand is very low and there is a surplus
He will raise the price since demand is high and supply is scarce
He will raise the price since demand is very low and supply is scarce
Close
What does Gross Domestic Product (GDP) measure?
The percentage of people who do not have jobs but are actively looking for one during a set time
The amount an interest rate changes by a central bank in order to reduce inflation over one year
The total amount of goods and services produced and sold in a country during a set time
The amount of time a country has had a weak economy in order to determine if a recession is happening
What type of economy do you have If the Gross Domestic Product (GDP) is growing?
Strong
Weak
Contracting
Inflationary
What is one sign that inflation is happening?
Prices are rising slowly
Prices are rising quickly
Prices are staying the same
Prices are falling slowly
Jamal is trying to open a new business and he is looking for signs that the economy is strong. He notices that GDP is decreasing and prices are rising quickly. What conclusion is Jamal most likely to make based on this evidence?
The economy is strong since inflation is high and GDP is shrinking
The economy is weak since inflation is high and GDP is shrinking
The economy is weak since inflation is low and GDP is growing
The economy is strong since inflation is low and GDP is growing
Why would a government’s central bank raise interest rates when inflation is high?
To encourage people to spend less which can bring prices down
To encourage people to spend more which can bring prices down
To encourage people to spend less to increase demand and push prices up
To encourage people to spend more to increase demand and push prices up
How does lowering interest rates by a government’s central bank affect the economy?
It makes the economy weaker since it makes loans and credit cards more expensive and increases inflation
It helps strengthen the economy since it doesn't change the way people spend money
It helps strengthen the economy since loans and credit cards are cheaper and spending money is easier
It helps make the economy weaker since loans and credit cards are cheaper and spending money is more difficult
Which of the following are programs funded by taxes?
Book stores, amusement parks and lawn mowing
Electricity, solar panel installation, and septic tanks
Television, newspapers, internet and radio stations
Schools, roads, the military, and social security
Why are there different types of taxes, such as property, income, and sales?
Each tax is based on the amount of money you earn which is why everyone pays different tax amounts while shopping
Each tax is based on where you live which is why you're asked to share your zip code when shopping
Each tax is based on what you buy which can be different depending on where you decide to shop
Each tax serves a different purpose for different local, state and federal governments
How does sales tax impact consumers?
It increases the total costs of some items when shopping
It calculates the amount you owe based on the value of your home
It subtracts an amount of money automatically from your paycheck
It increases the amount of your medical insurance payments
Mitchell is running for public office. Everyone tells him taxes are too high and they need to be cut. What would be a consequence of cutting all collected taxes?
There would not be any money for private schools
People would shop less since goods would be expensive
There would not be funding for public services
Businesses would shut down since consumer spending would decline
(a) is the voluntary exchange of goods and services?
What best describes what a supply chain is?
A chain that can limit trade from chosen producers
It's a type of tariff that is only added to suppliers that are importing goods
It's another name for a storage facility for stores keep all their supplies
A series of trades from the producer to the consumer
Which of these is the most specialized company in a supply chain?
An apple orchard that grows, picks, and cooks apples in their own restaurant
A company that transports cherries on trucks domestically
A mine that digs, polishes, and sets diamonds in rings and sells online
A fisherman that grills and sells his daily catch on the beach every day for lunch
Alex was planning on buying a new TV. She kept putting off her purchase, so she was surprised six months later that the price had increased! What is one possible change in the supply chain that would most likely increase the price of her new TV?
There's a shortage of rare metals used to make TVs
There's a surplus of cardboard boxes used to ship the TVs
The price to use refrigerated trucks has skyrocketed
The cost of remote controls has been steady over time
(a) is the term to describe items that are produced and sold within your own country?
In a free market with no government-added charges, what is one reason why imported goods might be more expensive than domestic goods?
Increased tariff charges
Quotas restrictions
Surplus of imported goods
Long-distance travel costs
What is an example of a tariff?
A fee a business adds to imported goods in their shop to earn more money
A tax a government adds to imported goods to make them more expensive
A limit a local business puts on certain goods to save space on their shelves
A limit set by the government on how much of a good can be imported
Why would a government want to make imported goods more expensive?
To protect and support domestic jobs and businesses
To protect and support international jobs and businesses
To make luxury goods feel more fancy with a higher price
To donate money to local schools and playgrounds
If goods or services are scarce, how will the price most likely change?
It will decrease a little
It will crash a lot
It will go up
It will not change at all
Marcus really loves to eat seafood but he lives in a mountain town thousands of miles from the ocean. Which statement best describes his relationship to trade?
He doesn't need trade since he can just order seafood delivery
He benefits from trade since seafood can't be caught where he lives
He can't participate in trade since there is no supply chain where he lives
He benefits from trade since he goes to the ocean once a year for seafood
Close
Match the following
macroeconomics
economic decisions that affect a nation
microeconomics
economic decisions that affect locals
resource
used to produce goods and services
service
an action that someone does for payment
goods
items that can be bought or sold
Match the following
demand
items wanted for purchase
supply
number of items ready for sale
consumers
people who buy/use goods/services
producers
people that provide goods/services
Match the following
surplus
supply is greater than demand
scarcity
when demand is greater than supply
quotas
assigned number of goods/service to make
entrepreneurs
business owners
Match the following
market economy system
consumers/producers make decisions
traditional economic system
culture/customs drive decisions
command economic system
government makes decisions
The (a) economic system is the method used in the United states.
Scarcity causes the price of an item to (a) .
Surplus causes the price of an item to (a) .
Production is the process of changing (a) materials into economic goods.
