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Chapter 3 Review

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Benjamin, David, and Mason are discussing the concept of a free market in an economy. According to this concept, what does it mean?

a)

It means that people like Benjamin, David, and Mason are free to buy, sell, and produce whatever they want

b)

It means that people like Benjamin, David, and Mason are restricted from buying and selling goods

c)

It means that the government decides what Benjamin, David, and Mason should produce and consume

d)

It means that only certain businesses are allowed to produce goods for people like Benjamin, David, and Mason

2.

Michael started a small business selling handmade crafts. After paying for materials, rent, and other expenses, what does the term 'profit' refer to in his business?

a)

Money before Michael pays for his business expenses

b)

Money after Michael pays for his business expenses

c)

Money Michael uses for his personal budget

d)

Money Michael borrowed from the bank

3.

Ethan, Aria, and Rohan are discussing their personal finances. Rohan asks, 'What is the main purpose of a personal budget?'

a)

To save money for future expenses like Ethan's plan to buy a new car

b)

To pay off debts like Aria's student loans

c)

To invest in the stock market like Rohan's interest in buying shares

d)

To plan for spending income on daily expenses like groceries, rent, and utilities

4.

Oliver, Mason, and Noah live in a village that follows a traditional economy. On what basis do they make their economic decisions?

a)

Based on what the stock market indicates

b)

Based on what the consumers in their village demand

c)

Based on what the village government decides

d)

Based on what has been done in the past in their village

5.

Aria, Mason, and Emma are at a restaurant. Mason wants to pay for the meal. He pulls out a debit card. What is the function of Mason's debit card in this scenario?

a)

To invest in the stock market

b)

To pay off debts

c)

To borrow money from the bank

d)

To easily access money from his checking account

6.

What does the term 'profit' refer to in a business?

a)

Money before business expenses are paid

b)

Money after business expenses are paid

c)

Money used for personal budget

d)

Money borrowed from the bank

7.

What is the main purpose of a personal budget?

a)

To save money for future expenses

b)

To pay off debts

c)

To invest in the stock market

d)

To plan for spending income on daily expenses

8.

What is a free market in an economy?

a)

People are free to buy, sell, and produce whatever they want

b)

People are restricted from buying and selling goods

c)

The government decides what to produce and consume

d)

It's a mix of all different types of economies.

9.

In a traditional economy, what is the basis for economic decisions?

a)

What the stock market indicates

b)

What the consumers demand

c)

What the government decides

d)

What has been done in the past

10.

What is the function of a debit card?

a)

To invest in the stock market

b)

To pay off debts

c)

To borrow money from the bank

d)

To easily access money from a checking account

11.

Emma, Noah, and Oliver are discussing their personal finances. Emma asks, 'What is the main purpose of a savings account?'

a)

To invest in the stock market like Noah's interest in buying shares

b)

To pay off debts like Oliver's student loans

c)

To save money for future expenses like Emma's plan to buy a new house

d)

To plan for spending income on daily expenses like groceries, rent, and utilities

12.

In a command economy, who makes the economic decisions?

a)

What the stock market indicates

b)

What the consumers demand

c)

What the government decides

d)

What has been done in the past

13.

Lucy, Noah, and Oliver are discussing the concept of a mixed economy. According to this concept, what does it mean?

a)

It means that people like Lucy, Noah, and Oliver are free to buy, sell, and produce whatever they want

b)

It means that the government decides what Lucy, Noah, and Oliver should produce and consume

c)

It means that the economy is a mix of free market and command economy

d)

It means that only certain businesses are allowed to produce goods for people like Lucy, Noah, and Oliver

14.

In a mixed economy, who makes the economic decisions?

a)

What the stock market indicates

b)

What the consumers demand

c)

What the government decides

d)

Both the government and the market forces

15.

Emma, Noah, and Oliver are discussing their personal finances. Oliver asks, 'What is the main purpose of a credit card?'

a)

To invest in the stock market like Noah's interest in buying shares

b)

To pay off debts like Emma's student loans

c)

To borrow money from the bank for purchases

d)

To plan for spending income on daily expenses like groceries, rent, and utilities

16.

What is the main function of a checking account?

a)

To invest in the stock market

b)

To pay off debts

c)

To save money for future expenses

d)

To easily access money for daily expenses

17.

Lucy, Noah, and Oliver are discussing the concept of a command economy. According to this concept, what does it mean?

a)

It means that people like Lucy, Noah, and Oliver are free to buy, sell, and produce whatever they want

b)

It means that the government decides what Lucy, Noah, and Oliver should produce and consume

c)

It means that the economy is a mix of free market and traditional economy

d)

It means that only certain businesses are allowed to produce goods for people like Lucy, Noah, and Oliver

18.

In a free market economy, who makes the economic decisions?

a)

What the stock market indicates

b)

What the consumers demand

c)

What the government decides

d)

What has been done in the past

19.

Lucy, Noah, and Oliver are discussing their personal finances. Lucy asks, 'What is the main purpose of a credit card?'

a)

To invest in the stock market like Noah's interest in buying shares

b)

To pay off debts like Oliver's student loans

c)

To borrow money from the bank for purchases

d)

To plan for spending income on daily expenses like groceries, rent, and utilities

20.

What is the main function of a savings account?

a)

To invest in the stock market

b)

To pay off debts

c)

To save money for future expenses

d)

To easily access money for daily expenses

21.

Mrs. Risser chose to invest in stock. This means that she has invested in

a)

starting a savings account

b)

partial ownership of the company

c)

working towards owning the company

d)

a chance to win the lottery

22.

Another name for a business owner is...

a)

employee

b)

CEO

c)

consumer

d)

producer

23.

Another name for a customer is...

a)

consumer

b)

producer

c)

business owner

d)

employee

24.

When people own stock, they invest by buying...

a)

customers

b)

shares

c)

a business

d)

a savings account

25.

A market economy relies on ____ & ______.

a)

supply & command

b)

customers & consumers

c)

supply & demand

d)

business owners & producers

26.

when people borrow the money from the bank to buy something that is more expensive than what they can pay for all at once (car, college, house)

a)

loan

b)

credit card

c)

checking account

d)

stock

27.

What is collected to help the government pay for things like roads, schools, & armed forces

a)

loans

b)

taxes

c)

credit

d)

debit

28.

When someone borrows money from the bank as a laon they now have...

a)

savings

b)

checking

c)

interest

d)

debt

29.

When a person takes out a loan, they agree to pay back the money as well as _____, which is a fee charged for borrowing money.

a)

interest

b)

debit

c)

credit

d)

checking

30.

when a country spends more on imports than it makes on exports

a)

trade surplus

b)

trade deficit

c)

import tax

d)

export tax