WorksheetsMarket and Trade Study Guide
Total questions: 16
Worksheet time: 1hrs 20mins
Which of the following is an example of a voluntary exchange?
making your favorite candy at home
buying candy at the candy store that offers a variety of choices
buying candy from the government store that limits the types of candy
not buying candy because the laws forbid candy from being sold where you live
In a market economy, what are prices based on?
supply and demand
the government's rules
goods traded for services
all products at the same price
Exchanging one good or service for something else is called
produce
trade
import
export
How does the government pay for items such as public schools and libraries?
taxes
donations
tuition and fees
prints their own money
How does trade help both a producer and a consumer?
Both make a lot of money by trading with each other.
Consumers make more money by selling goods that producers want.
Both get something they need in exchange for something they did not need.
Producers make money by selling consumers something they do not want or need.
What is the definition of supply?
the desire to buy goods
the amount of items available
the price you pay for something
the amount of money it costs to make something
How are police, fire, and military services related?
They are all public services paid for with taxes.
They are all private services paid for with taxes.
They are all public services billed to individuals each time they use the services.
They are all private services billed to individuals each time they use the services.
Which of the following is the BEST example of depending on others?
growing your own food
owning a large piece of land
moving west for farm land
shopping at the grocery store
What word defines the idea of exchanging goods or services when a person needs or wants something?
Money
Taxes
Trade
Dependence
Trading objects or ideas is called what?
In a voluntary exchange system, what does the term interdependent mean?
Dependent on others for goods
Dependent on yourself for goods
Dependent on your family for goods
Dependent on the government for goods
You pay your sister $5 to clean your messy bedroom. This is an example of...
Good
Service
Which of the following descriptions BEST explains supply and demand?
A candy company makes one kind of candy bar. It never changes what it makes.
A candy company only makes the type of candy bars that the government tells it to make.
A candy company went out of business because their chocolate supplier went out of business.
A candy company changes the kind of candy bars they make depending on what kind of candy bars kids are buying.
If the price of a product increases, what is likely to happen to the demand for that product?
Demand will increase
Demand will decrease
Demand will stay the same
Demand will become unpredictable
Trade is the exchange of goods and __________.
business
services
What is the basic rule of supply and demand?
When supply increases, demand decreases.
When demand increases, supply decreases.
When supply increases, prices decrease.
When demand increases, prices decrease.
