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Economy Lessons 3&4 STUDY

Total questions: 22

Worksheet time: 17mins

Name
Class
Date
1.

What does the term "tradeoff" mean in economics?

a)

The price needed to get something

b)

Giving up one thing for another

c)

A useful result

d)

A person's skills, knowledge, and experience

2.

What is meant by "opportunity cost"?

a)

A job

b)

Something you need to live

c)

What you have to give up to get something else

d)

Something you would like to have

3.

Which of the following best defines "benefit"?

a)

A useful result

b)

The price needed to get something

c)

Giving up one thing for another

d)

A person's skills, knowledge, and experience

4.

What is the difference between a "need" and a "want"?

a)

Need is something you must have to live, want is something you would like to have

b)

Want is something you must have to live, need is something you would like to have

c)

Both are things you must have to live

d)

Both are things you would like to have

5.

What does "invest" mean in economic terms?

a)

A job

b)

To spend now in the hope of future reward

c)

What you have to give up to get something else

d)

A useful result

6.

What is "human capital"?

a)

A job

b)

The price needed to get something

c)

A useful result

d)

A person's skills, knowledge, and experience

7.

What does "occupation" refer to?

a)

A person's skills, knowledge, and experience

b)

A job

c)

The price needed to get something

d)

Something you would like to have

8.

What is a need in economics?

a)

Something you want very much

b)

Something essential for survival

c)

A luxury item

d)

A type of currency

9.

In a scenario where a person buys a loaf of bread, what role are they playing?

a)

Producer

b)

Consumer

c)

Banker

d)

Investor

10.

What does it mean to save money?

a)

To spend money on toys

b)

To keep money for future use

c)

To borrow money from a bank

d)

To earn interest on toys

11.

For example, if you are given $20 and you choose to go to the movies and spend that $20. Your next choice would have been buy candy. Your Opportunity Cost would be

a)

buy candy

b)

buy McDonalds

c)

Save the money

12.

What is the definition of a want?

a)

the good things about a choice

b)

the amount of item that a store has in stock

c)

what you must pay for an item

d)

something you would like to have

13.

Billy was trying to make a choice between a new game for his Wii or a new skateboard. He decided to use his money to buy a new game for his Wii. He had to give up the skateboard for the Wii game. The skateboard was his

a)

scarcity

b)

benefit

c)

opportunity cost

14.

Consumers

a)

use and pay for goods and services

b)

make or grow goods and sell services

c)

want to grow goods and sell services

d)

are people who live in neighborhoods

15.

Producers

a)

use and pay for goods and services

b)

make or grow goods and sell services

c)

want to grow goods and sell services

d)

are people who live in a neighborhood

16.
It's important to spend money on things you need before spending money on things you want.
a)
True
b)
False
17.

Which is a need?

a)

Soda

b)

Starbucks

c)

Water

18.

Are headphones a need or want?

a)

Need

b)

Want

19.

exchanging one thing for another

a)

trade- off

b)

income

c)

savings account

d)

sacrifices

20.

Put money into a bank account.

a)

withdraw

b)

deposit

21.

Take money out from your bank account.

a)

withdraw

b)

deposit

22.

an institution that receives deposits and makes loans

a)

bank

b)

loans

c)

savings account

d)

checking accounts

e)

deposit