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Glossary of Economic Terms pt. 1

Total questions: 100

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

The definition of 'Abilities' is:

a)

Skills or talents that a person possesses

b)

A type of physical strength

c)

An academic degree

d)

A type of food

2.

What are 'Abundant Resources'?

a)

Resources that are scarce and hard to find

b)

Resources that are available in large quantities

c)

Resources that are expensive to obtain

d)

Resources that are non-renewable

3.

What does 'Account' mean in economic terms?

a)

A record of financial transactions

b)

A type of economic policy

c)

A measure of economic growth

d)

A financial institution

4.

What does it mean to 'Advertise'?

a)

To promote products or services to the public

b)

To create a new product

c)

To sell products directly to consumers

d)

To conduct market research

5.

What is an 'Advertisement'?

a)

A form of communication intended to persuade an audience

b)

A type of personal diary

c)

A scientific research paper

d)

A historical document

6.

What are 'Alternatives'?

a)

Different options or choices available

b)

A type of question

c)

A mathematical term

d)

A programming language

7.

What does 'Appreciation' mean in economics?

a)

An increase in the value of an asset

b)

A decrease in the value of an asset

c)

A stable value of an asset

d)

A fluctuating value of an asset

8.

An 'Assembly Line' is:

a)

a method of production where workers and machines are arranged in a sequence to assemble a product efficiently

b)

a type of public transportation system

c)

a line of people waiting for a service

d)

a type of computer programming language

9.

An 'Asset' is:

a)

A liability

b)

An item of value owned

c)

A type of expense

d)

A form of debt

10.

What does 'ATM' stand for?

a)

Automated Teller Machine

b)

Automatic Transaction Machine

c)

Automated Transfer Method

d)

Automatic Teller Mechanism

11.

The role of an 'Auditor' is to:

a)

prepare financial statements

b)

conduct independent assessments of financial records

c)

manage company operations

d)

develop marketing strategies

12.

A 'Bank' is:

a)

a financial institution that accepts deposits and channels the money into lending activities

b)

a place where animals are kept

c)

a type of food

d)

a musical instrument

13.

'Barter' means:

a)

Exchange goods or services without using money

b)

A type of currency

c)

A form of investment

d)

A method of saving

14.

A 'Bear Market' is:

a)

a market condition where prices are falling, encouraging selling.

b)

a market condition where prices are rising, encouraging buying.

c)

a market condition where prices are stable, with little movement.

d)

a market condition where prices are unpredictable and volatile.

15.

What is a 'Benefit'?

a)

A type of cost

b)

A type of advantage

c)

A type of disadvantage

d)

A type of risk

16.

A 'Bookkeeper' is responsible for:

a)

Managing financial records and transactions

b)

Designing marketing strategies

c)

Developing software applications

d)

Conducting scientific research

17.

What does it mean to 'Borrow money'?

a)

To lend money to someone

b)

To take money from someone with the intention of returning it

c)

To give money as a gift

d)

To invest money in a business

18.

What is a 'Budget'?

a)

A financial plan for a defined period

b)

A type of investment

c)

A government policy

d)

A type of currency

19.

What is a Bull Market?

a)

A market characterized by rising prices

b)

A market characterized by falling prices

c)

A market with stable prices

d)

A market with fluctuating prices

20.

What is a Business?

a)

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

b)

A type of government organization.

c)

A non-profit organization focused on charity.

d)

A social club for community activities.

21.

What is Capital?

a)

A city where a region's government is located

b)

A factor of production: Man-made resources used in the production of goods and services.

c)

A large letter in writing

d)

A type of punishment

22.

What are Capital Goods?

a)

Goods used for personal consumption

b)

Tools, machinery, buildings, etc., used to produce final goods or services.

c)

Goods that are consumed quickly

d)

Goods that are intangible

23.

What are Capital Resources?

a)

Tangible assets used in production (Goods made by people used to produce other goods and services.

b)

Natural resources like water and minerals

c)

Human skills and labor

d)

Financial investments and stocks

24.

What is Capitalism?

a)

An economic system where trade and industry are controlled by private owners for profit

b)

A political system where the government controls all aspects of life

c)

A social system where community ownership is prioritized over individual ownership

d)

A cultural system focused on traditional values and customs

25.

Cash is a form of:

a)

Credit

b)

Digital currency

c)

Physical currency

d)

Investment

26.

What is Cash Price?

a)

The price of an item before any discounts or taxes are applied, if a person pays with cash.

b)

The price of an item after discounts but before taxes,

c)

The price of an item after taxes but before discounts

d)

The price of an item including both discounts and taxes, whether or not they use cash.

27.

What is a Check?

a)

A written, dated, and signed instrument that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee.

b)

A type of savings account.

c)

A loan given by a bank.

d)

A credit card transaction.

28.

A Check Card is:

a)

a type of credit card

b)

a type of debit card

c)

a type of prepaid card

d)

a type of gift card

29.

A Check Register is:

a)

a booklet used to record all checks issued and deposits made to a bank account

b)

a type of bank account

c)

a financial statement

d)

a type of loan

30.

A Checking Account is:

a)

A type of savings account

b)

A type of bank account that allows easy access to funds

c)

An investment account

d)

A retirement account

31.

A checklist is a tool used for:

a)

Organizing tasks and ensuring nothing is missed

b)

Creating complex algorithms

c)

Designing user interfaces

d)

Writing creative stories

32.

Choice is a concept that involves making a decision between two or more possibilities. It relates to which of the following?

a)

A process of elimination

b)

A concept of decision-making

c)

A random selection

d)

A predetermined outcome

33.

The definition of Circular Flow in economics is:

a)

A model that shows the flow of goods and services and the interaction among households, businesses, and the government.

b)

A theory that explains the movement of planets in the solar system.

c)

A concept that describes the circular motion of a spinning object.

d)

A diagram that illustrates the water cycle in nature.

34.

Who is a Clerk according to the given definition?

a)

A person who manages financial records

b)

A person who assists in administrative tasks

c)

A person who oversees construction projects

d)

A person who provides legal advice

35.

What is a Coin, in the economic sense?

a)

A flat, round piece of metal used as currency.

b)

A tool for decision making

c)

A collectible item

d)

A symbol of wealth

36.

What does Commission refer to in the context of services?

a)

A fee paid for services rendered (sometimes a percentage)

b)

A type of service

c)

A discount on services

d)

A service guarantee

37.

What does it mean to Compare in economic terms?

a)

To evaluate the similarities and differences

b)

To determine the exact value of an economic entity.

c)

To predict future economic trends.

d)

To create economic policies.

38.

How is Competition defined in the provided text?

a)

Competition is defined as a struggle for resources or customers.

b)

Competition is defined as a cooperative effort.

c)

Competition is defined as a random event.

d)

Competition is defined as a peaceful negotiation.

39.

What characterizes a Competitive Market?

a)

A large number of buyers and sellers, and nothing keeping anyone from participating.

b)

A single seller dominates the market

c)

Government controls prices

d)

Only a few buyers

40.

Who is considered a Competitor?

a)

A person or entity that competes with others

b)

A person who observes a competition

c)

A person who organizes a competition

d)

A person who sponsors a competition

41.

What is Compound Interest according to the text?

a)

A method of calculating interest where the interest earned is added to the principal for future interest calculations.

b)

A fixed percentage of the principal amount paid as interest annually.

c)

Interest calculated only on the initial principal amount.

d)

A type of interest that decreases over time.

42.

Conservation in the context of natural resources means:

a)

Preservation and protection of resources

b)

Exploitation of resources for economic gain

c)

Ignoring the depletion of resources

d)

None of the above

43.

What does it mean to Consume goods or services?

a)

To produce goods or services

b)

To purchase or use goods or services

c)

To sell goods or services

d)

To destroy goods or services

44.

Who is a Consumer as per the given definition?

a)

A person who buys goods or services for final use

b)

A person who sells goods or services

c)

A person who produces goods or services

d)

A person who distributes goods or services

45.

What is meant by Convenience in the text?

a)

The ease of use or accessibility of something

b)

The cost associated with a product or service

c)

The quality and durability of a product

d)

The brand reputation and popularity

46.

How is Cost defined in the provided text?

a)

Cost is the total expenditure incurred.

b)

Cost is the value of the next best alternative foregone.

c)

Cost is the amount paid to acquire something.

d)

Cost is the price of goods and services.

47.

Credit in economic terms refers to:

a)

A promise of payment at a future time in return for goods/ services now

b)

A type of currency people use to buy things.

c)

A form of investment

d)

A government policy

48.

A Credit Card is:

a)

A type of loan that must be paid back on demand.

b)

A payment card issued to users to enable the cardholder to pay a merchant for goods and services .

c)

A savings account which draws interest.

d)

A type of investment

49.

What is Credit Price?

a)

The cost of borrowing money

b)

The interest rate on a loan

c)

The total amount of a loan

d)

The price of a credit card

50.

A Credit Union is a:

a)

A bank owned by shareholders.

b)

A cooperative group that holds savings and makes loans to its members.

c)

A government financial institution

d)

private investment firm

51.

Criteria are:

a)

a set of principles or standards by which something may be judged or decided

b)

a type of fruit

c)

a mathematical equation used to solve an economic problem.

d)

a historical event

52.

What is Currency?

a)

Part of the money supply: paper bills.

b)

A type of food preparation served in many Asian countries.

c)

A form of transportation using rivers or waterways.

d)

A style of music

53.

Customer Service is:

a)

The level of service provided to satisfy customers.

b)

A type of product customers can buy for a fee.

c)

A marketing strategy used to appeal to consumers.

d)

A financial service

54.

A Customer Survey is a tool used to:

a)

gather customer feedback

b)

increase sales

c)

train employees

d)

advertise products

55.

Decision Making is the process of:

a)

choosing between alternatives to reach a conclusion

b)

gathering information without making a choice

c)

avoiding making any decisions

d)

randomly selecting an option

56.

A Debit Card is:

a)

A card that allows you to borrow money from a bank

b)

A card that allows you to make purchases using funds directly from your bank account

c)

A card that is used to earn rewards points

d)

A card that is only used for online transactions

57.

Debt is:

a)

A financial obligation or amount owed by one party to another.

b)

A type of investment that guarantees returns.

c)

A form of currency used in international trade.

d)

A method of saving money for future expenses.

58.

Deflation is:

a)

a decrease in the general price level of goods and services

b)

an increase in the general price level of goods and services

c)

a measure of economic growth

d)

a type of inflation

59.

What is Demand?

a)

The amount that consumers are able and willing to buy at all possible prices at a given time.

b)

The supply of goods available in the market

c)

The cost of production of goods

d)

The government regulation on prices

60.

What is a Demand Deposit?

a)

A type of deposit into a bank account from which funds can be withdrawn at any time without any notice.

b)

A long-term investment account in a bank or other institution with fixed interest rates.

c)

A type of loan provided by banks to businesses.

d)

A savings account with a fixed withdrawal limit.

61.

The term 'Deposit' in banking refers to:

a)

A type of loan given by the bank

b)

Money placed into a bank account

c)

A fee charged by the bank

d)

An investment in stocks

62.

A 'Deposit Ticket' is also known as a ______ and represents a document used to record the deposit of funds into a bank account.

a)

Deposit Slip

b)

Withdrawal Slip

c)

Cheque

d)

Bank Statement

63.

What does it mean to 'Depreciate' in terms of assets?

a)

To increase in value over time

b)

To decrease in value over time

c)

To remain constant in value

d)

To be written off completely

64.

Which of the following best describes 'Disposable Income'?

a)

The total income before taxes are deducted

b)

The amount of money available after paying taxes

c)

The money spent on essential goods and services

d)

The savings accumulated over a lifetime

65.

Explain the term 'Distribution' in the productive process.

a)

Distribution refers to the allocation of resources in production.

b)

Distribution is the process of getting goods to consumers.

c)

Distribution involves the creation of goods and services.

d)

Distribution is the management of production facilities.

66.

A 'Distributor' is responsible for:

a)

Manufacturing products

b)

Distributing products to retailers

c)

Retailing products to consumers

d)

Designing products

67.

What is meant by 'Division of Labor'?

a)

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

b)

The process of dividing a company into different departments.

c)

The separation of ownership and management in a corporation.

d)

The allocation of resources in a planned economy.

68.

What are 'Durable Goods'? Give examples.

a)

Durable goods are items that last for a long time, such as cars and appliances.

b)

Durable goods are perishable items like food and flowers.

c)

Durable goods are intangible services like education and healthcare.

d)

Durable goods are items that are used once and discarded, like paper plates.

69.

'Economical' means:

a)

Efficient use of resources or money

b)

Wasteful use of resources or money

c)

Irrelevant to resources or money

d)

Excessive use of resources or money

70.

Economic Systems are defined as:

a)

The means by which countries and governments distribute resources and trade goods and services.

b)

A system of government in which priests rule in the name of God.

c)

A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government.

d)

A system where the state owns and controls the means of production.

71.

Economics is the study of

a)

money and banking

b)

human behavior

c)

scarcity and choice

d)

political systems

72.

What does it mean to be 'Efficient' in resource use?

a)

Using resources in a way that maximizes output with minimal waste

b)

Using as many resources as possible regardless of output

c)

Focusing only on reducing costs without considering resource use

d)

Ignoring resource use to focus on speed

73.

Who are 'Employees'?

a)

Individuals who work for a company or organization

b)

People who own a company

c)

Customers of a business

d)

Suppliers of goods

74.

An 'Employer' is:

a)

a person or organization that hires employees

b)

a person who is looking for a job

c)

a person who is self-employed

d)

a person who works for an employer

75.

What does it mean to 'Endorse' a check?

a)

To sign the back of the check to authorize its cashing or deposit

b)

To write a check to someone else

c)

To void the check

d)

To issue a new check

76.

An 'Entrepreneur' is defined as:

a)

A person who organizes and operates a business, taking on financial risks to do so.

b)

A person who works for a company and receives a salary.

c)

A person who invests in stocks and bonds.

d)

A person who manages a team within a corporation.

77.

What does 'Equilibrium Price' mean?

a)

The price at which the quantity demanded equals the quantity supplied

b)

The price at which the quantity demanded exceeds the quantity supplied

c)

The price at which the quantity supplied exceeds the quantity demanded

d)

The price set by the government

78.

Define 'Ethics'.

a)

Ethics is the study of what is morally right and wrong.

b)

Ethics is a branch of physics.

c)

Ethics is a type of art.

d)

Ethics is a form of government.

79.

What is 'Exchange'?

a)

A type of currency

b)

A synonym for trading, it is also used to mean a marketplace for trading

c)

A communication platform used by consumers.

d)

A financial institution

80.

Explain 'Exchange Rate'.

a)

The cost of converting one country's money to another.

b)

A type of financial market.

c)

A method of trading stocks.

d)

A form of digital currency.

81.

FDIC stands for ______ and its purpose is to ______.

a)

Federal Deposit Insurance Corporation; insure deposits in banks and thrift institutions

b)

Federal Department of Insurance and Commerce; regulate insurance companies

c)

Federal Division of Investment and Currency; manage national currency

d)

Federal Directorate of International Commerce; oversee international trade

82.

What are 'Factor Payments'?

a)

Payments made to factors of production for their services

b)

Taxes paid by businesses

c)

Subsidies given by the government

d)

Profits earned by companies

83.

Define 'Factor of Production'.

a)

Any resource used to produce goods and services.

b)

A type of financial instrument used in investment.

c)

A method of calculating economic growth.

d)

A government policy to control inflation.

84.

The role of the 'Federal Reserve Bank' is to:

a)

regulate the stock market

b)

control the national currency and monetary policy by acting as a bank for the other banks.

c)

manage the federal budget

d)

oversee international trade agreements

85.

What are 'Fees'?

a)

A type of currency

b)

A charge for services

c)

A form of tax

d)

A type of investment

86.

What are 'Final Goods and Services'?

a)

Goods and services that are used to produce other goods and services

b)

Goods and services that are sold to the end user

c)

Goods and services that are used for resale

d)

Goods and services that are used for intermediate consumption

87.

What does 'Financial Risk' mean?

a)

The possibility of losing money on an investment or business venture

b)

The chance of making a profit on an investment

c)

The certainty of financial gain

d)

The assurance of no financial loss

88.

What is a 'Finance Charge'?

a)

A fee charged for the use of credit or the extension of existing credit.

b)

A type of investment strategy.

c)

A government tax on financial transactions.

d)

A discount offered by financial institutions.

89.

A 'Financial Institution' is:

a)

a place where financial transactions occur, such as banks and credit unions

b)

a type of government agency

c)

a non-profit organization

d)

a type of educational institution

90.

What is a 'Flow Chart'?

a)

A graphical representation of a process or system

b)

A type of musical notation

c)

A form of written communication

d)

A style of painting

91.

Free Enterprise is defined as:

a)

An economic system where private businesses operate in competition and largely free of state control.

b)

A political system where the government controls all aspects of life.

c)

A social system where communities share resources equally.

d)

A legal system where laws are made by a single ruler.

92.

What is a 'Free Good'?

a)

A good that is available in unlimited quantities and has no opportunity cost.

b)

A good that is scarce and has a high price.

c)

A good that is only available during certain seasons.

d)

A good that is produced by a government.

93.

The functions of money include:

a)

Medium of exchange, store of value, measure of value.

b)

Only medium of exchange

c)

Only store of value

d)

Only measure of value

94.

The purpose of 'Future Consumption' is:

a)

To save for future needs and allocate resources accordingly.

b)

To analyze past consumption patterns.

c)

To reduce current consumption levels.

d)

To increase current consumption levels.

95.

What are 'Goods'?

a)

Items that are produced for sale

b)

Services provided to customers

c)

Digital products only

d)

Natural resources

96.

What is 'Government'?

a)

A system for controlling a country or community

b)

A type of economic policy

c)

A form of artistic expression

d)

A method of scientific research

97.

What are 'Human Resources'?

a)

The quantity and quality of human effort used to produce goods and services. (Also called labor.)

b)

A type of financial resource

c)

A technological tool for project management

d)

A marketing strategy

98.

What is 'Income'?

a)

A type of expense

b)

A type of revenue

c)

A type of investment

d)

A type of liability

99.

Income Tax is a type of tax that is levied on the _______.

a)

income of individuals or businesses

b)

goods and services

c)

property and assets

d)

inheritance and gifts

100.

An 'Individual Retirement Account (IRA)' is:

a)

a type of savings account with tax advantages for retirement savings.

b)

a checking account for daily transactions.

c)

a loan account for purchasing a home.

d)

a credit card account for personal expenses.