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AMS Gr 7 Economics Vocabulary Practice

Total questions: 58

Worksheet time: 30mins

Name
Class
Date
1.

Which term means the amount of a good or service available from sellers?

a)

Supply provided by producers

b)

Scarcity limiting all resources

c)

Demand from eager consumers

d)

Equilibrium where lines meet

2.

Which term describes how much people want or need a good or service?

a)

Supply available to markets

b)

Demand from consumers

c)

Tariff added to imports

d)

Incentive motivating action

3.

What is the equilibrium point in a market?

a)

Where tariffs are removed

b)

Where supply equals demand

c)

Where imports exceed exports

d)

Where producers outnumber consumers

4.

Opportunity cost refers to which idea?

a)

The total price paid with tax

b)

The advantages of all trade-offs

c)

The goods produced domestically

d)

The next best alternative given up

5.

Free trade is best defined as which policy?

a)

Government limits on exports

b)

No tariffs or quotas

c)

Only domestic sales allowed

d)

Invisible Hand in action

6.

Which statement about trade-offs is accurate?

a)

They are goods sold abroad

b)

They are the choices given up

c)

They are taxes on imports

d)

They are services people perform

7.

Which phrase summarizes cost/benefit analysis?

a)

Measuring only production

b)

Comparing costs and benefits

c)

Tracking consumer feelings

d)

Setting nationwide tariffs

8.

Adam Smith is known for which contributions?

a)

Inventing modern tariffs

b)

Authoring The Wealth of Nations

c)

Developing the Invisible Hand

d)

Creating the idea of free trade

9.

The Invisible Hand metaphor suggests what outcome in markets?

a)

Scarcity disappears entirely

b)

Tariffs protect all workers

c)

Self‑interest guides cooperation

d)

Government plans set prices

10.

Which is the best example of a good?

a)

A haircut service

b)

A downloadable song

c)

A tax on imports

d)

A tutoring session

11.

Which option is a service rather than a good?

a)

A music streaming subscription

b)

A chocolate bar

c)

A video game disc

d)

A bicycle helmet

12.

What does scarcity mean in economics?

a)

Prices always stay equal

b)

Unlimited resources available

c)

Limited resources, unlimited wants

d)

Imports always exceed exports

13.

Who is a producer in an economy?

a)

The shopper comparing prices

b)

The company that makes goods

c)

The country that taxes imports

d)

The person who buys items

14.

Which choice best defines a consumer?

a)

One who uses or buys things

b)

One who exports to others

c)

One who produces services

d)

One who writes price laws

15.

Import means what for a country?

a)

Taxing goods at the border

b)

Producing goods domestically

c)

Bringing goods in to sell

d)

Sending goods out for sale

16.

Export means what for a country?

a)

Selling goods to another

b)

Buying goods at home

c)

Removing all market prices

d)

Bringing goods in to sell

17.

Which option shows an incentive?

a)

A bonus for high grades

b)

A tariff on foreign shoes

c)

An import from a neighbor

d)

A service by a barber

18.

Domestic trade refers to activities that occur where?

a)

Only in international waters

b)

Between producers and buyers

c)

Within a single country

d)

Across multiple continents

19.

What is a tariff designed to do?

a)

Protect domestic jobs

b)

Add a tax to imported goods

c)

Generate local government revenue

d)

Eliminate scarcity entirely

20.

Which term means a government sets a limit on how much of a product can be imported or exported?

a)

Embargo on all trade

b)

Sanction against a nation

c)

Quota on trade amounts

d)

Tariff on foreign goods

21.

A tariff is best described as which policy tool?

a)

A penalty to change behavior

b)

A tax on imported goods

c)

A total trade ban

d)

A limit on export quantity

22.

Which action is a government punishment designed to pressure another country to change behavior and can be partial?

a)

Sanction restricting trade

b)

Quota on shipments

c)

Embargo with full ban

d)

Tariff raising prices

23.

What is an embargo?

a)

A tax added at borders

b)

A total or near-total ban

c)

A limit per company

d)

A rule about labeling

24.

Protectionism most likely includes which combination of policies?

a)

Open borders for goods

b)

Quotas limiting amounts

c)

Tariffs on imports

d)

Sanctions without limits

e)

Embargoes blocking trade

25.

Gross Domestic Product (GDP) measures which idea?

a)

Total population size

b)

Total value of yearly production

c)

Number of employed adults

d)

Average household income

26.

GDP per capita helps compare wealth by doing what?

a)

Subtracting taxes from GDP

b)

Adding exports to GDP

c)

Dividing GDP by population

d)

Dividing GDP by households

27.

Which indicator best reflects the degree of wealth and material comforts available to people in a community?

a)

Infant Mortality

b)

Life Expectancy

c)

Literacy Rate

d)

Standard of Living

28.

Literacy rate is defined as which measurement?

a)

Percent who finished college

b)

Percent over 15 who read and write

c)

Share of teachers per student

d)

Number of schools per city

29.

Infant mortality rate reports which statistic?

a)

Doctors per 10,000 people

b)

Babies born each year

c)

Deaths per 1,000 births

d)

Hospitals built annually

30.

The poverty line is the minimum money needed to afford which level of needs?

a)

All services for free

b)

Luxury goods only

c)

Some wants and extras

d)

Only the basic needs

31.

Life expectancy shows which aspect of a nation?

a)

Average age at first job

b)

Average age people live to

c)

Average family size reported

d)

Average years of schooling

32.

A country with high infant mortality and low life expectancy most likely faces which challenge?

a)

Limited healthcare and sanitation

b)

High literacy and schooling

c)

Strong medical care access

d)

Advanced infrastructure coverage

33.

If most jobs are in agriculture, what is a likely characteristic of those jobs?

a)

Office-based professional work

b)

Hard physical labor outdoors

c)

Technology design in labs

d)

Legal services in cities

34.

Jobs in the service sector typically involve which feature?

a)

Mining underground resources

b)

Supporting other careers and services

c)

Farming on large plots

d)

Manufacturing with machines

35.

Infrastructure includes which items necessary for society to operate?

a)

Police and fire departments

b)

Hospitals and schools

c)

Private savings accounts

d)

Movie theaters and malls

e)

Roads and bridges

36.

A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?

a)

The supply will probably go up

b)

The supply will probably go down

37.
The graph represents: Demand or Supply?
a)
Demand
b)
Supply
38.

How does an increase in consumer population affect the demand for most products?

a)

demand decreases

b)

prices go down

c)

demand increases

d)

prices go up

39.

If the Price of a # 1 at Whataburger cost $17.10 and the Quantity Demanded is LOW what will happen to the Quantity Demanded at the price $12.54?

a)

It will not change

b)

It will decrease

c)

It will increase

d)

It will stay the same

40.

The demand schedule for sodas shows that -

a)

as price increases the demand decreases

b)

as price increases the demand increases

c)

as price increase the supply decreases

d)

sodas are good

41.

If the Price for movie tickets are $20.76 the Quantity Demanded is LOW if the price decreases to $12.43 what will happen to the Quantity Demanded?

a)

It will decrease

b)

It will increase

c)

Stay the same

d)

No change at all

42.

If the Price of a Panthère de Cartier purse is at $100 and the Quantity Demanded is HIGH (cause steal) but then changes to $3,000 what happens to the Quantity Demanded?

a)

It will not change

b)

It will increase

c)

It will decrease

d)

It will stay the same

43.

Which of these is an example of a shortage?

a)

Farmers produce more corn that consumers want or need.

b)

Grocery stores have enough bottled water to meet demand.

c)

Overfishing makes it difficult to catch a popular type of fish.

d)

A builder has the right amount of lumber to construct a house.

44.

amount of product available for sale?

a)

Supply

b)

Demand

c)

Surplus

d)

Deficit

45.

If the class lowers the supply of doughnuts to 10 doughnuts a day, what do you think they could do with the price?

a)

Raise it

b)

Leave it the same

c)

Lower it

46.

What can cause a change in demand?

a)

changes in consumer tastes

b)

Changes in income

c)

changes in the price of substitute goods

d)

All answers are correct

47.
When there is a shortage the price will usually? 
a)
rise
b)
fall
c)
remain the same
d)
equilibrium
48.

Economics can be described as the study of

a)

Only Food and Money

b)

The Choices We Make

c)

Graphing

d)

Price ceilings and Price floors

49.

I had to choose between ordering pizza or Chinese, since I didn't have enough money for both. I chose pizza. What was the opportunity cost of my decision?

a)

The pizza I ordered

b)

The Chinese food I didn't order

c)

Both the pizza and Chinese food

d)

None of the above

50.

Limited Resources + Unlimited Wants =

a)

Scarcity

b)

Productivity

c)

Opportunity Cost

d)

Efficiency

51.

Emily is deciding what to do after high school. Right now her two options are: go to college or enter the workforce/get a job. She can only choose one. Emily decides to get a job. Which of the following is the opportunity cost of her decision?

a)

money

b)

job

c)

time

d)

college

52.

When "wants are greater than the resources available to satisfy them," it is called...

a)

Scarcity

b)

Needs

c)

Opportunity Cost

d)

None of these answers

53.

Because of scarcity, people are forced to make _________ about how to use resources.

a)

Choices

b)

Opportunities

c)

Houses

d)

Desires

54.

In March 2020, due to Covid, toilet paper, paper towels, and Lysol wipes were extremely difficult to find in stores. This is an example of:

a)

Unfortunate situation...

b)

Shortage

55.

A large influx of people moving to our area has caused increased traffic and congestion on our roads. There is a _______ of available land to build new roads or railways.

a)

Scarcity

b)

Shortage

56.

In 2018, the most popular Christmas present was the PS4. Parents discovered that they could not find a PS4 for sale anywhere in their area. In this example, there was a _________ of the PS4.

a)

Scarcity

b)

Shortage

57.

The word economists use to describe the problem of limited resources and people's unlimited wants and needs is...

a)

trade-off

b)

opportunity cost

c)

scarcity

d)

values

58.

Economics is defined as...

a)

The study of money and finance

b)

The study of how society uses its limited resources

c)

The study of the Wu-Tang song "Cash Rules Everything Around Me"

d)

The study of how financial institutions lend and borrow money