WorksheetsMarkets, Money, and Businesses
Total questions: 20
Worksheet time: 10mins
What is a market in economics?
A place where only food is sold
A system where buyers and sellers exchange goods and services
A store
A government office
What is the main function of money?
To keep people happy
To store data
To serve as a medium of exchange
To limit trade
Which of the following is a feature of capitalism?
Government ownership of all businesses
No competition
Private property rights
Fixed prices
Free enterprise means...
Government controls all business decisions
People can start and run their own businesses freely
Only one business per town
No taxes at all
Which is a disadvantage of a sole proprietorship?
High government support
Difficult to manage employees
Unlimited personal liability
Shared decision making
What is a corporation?
A business owned by one person
A business owned by two people
A legally separate entity owned by shareholders
A nonprofit group
Which of the following is a responsibility of businesses?
Avoid paying taxes
Hire only family members
Provide safe working conditions
Ignore customer feedback
How do businesses help the economy?
By avoiding competition
By creating jobs and goods/services
By raising prices only
By eliminating small stores
What is a union?
A group of customers
A group of business owners
A group of workers joining together to protect their rights
A political party
Why might workers join a union?
To increase competition
To lower wages
To get better working conditions and pay
To shut down their business
What are the main types of money?
Only coins
Paper, coins, and digital money
Checks only
Gold and diamonds
Which of the following is a financial institution?
A coffee shop
A car dealership
A bank
A movie theater
What can be complicated about using money?
It’s always the same color
Managing credit, saving, and spending wisely
Carrying too much cash
Knowing how to print it
Who controls the supply of money in the U.S.?
The President
The Department of Labor
The Federal Reserve
The IRS
What is income inequality?
When everyone makes the same money
When some people earn more than others
When businesses are equal
When all workers go on strike
What could help reduce income inequality?
Reducing education
Raising the minimum wage
Firing employees
Closing businesses
What is one argument for increasing the minimum wage?
It reduces employee motivation
It helps workers afford basic needs
It increases company profits
It lowers unemployment
What is one argument against increasing the minimum wage?
It may cause businesses to hire more people
It could increase consumer spending
It might lead to fewer jobs
It improves worker satisfaction
How does the government affect businesses?
By giving out free products
By making laws and regulations
By running every business
By writing commercials
Why is competition good in a free market?
It raises all prices
It limits consumer choices
It encourages better quality and prices
It reduces business profits
