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Unit 1 Day 1

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

Which of the following best describes economics?

a)

The study of plants and animals

b)

The study of how money is created, used, and exchanged in society

c)

The study of weather patterns

d)

The study of ancient history

2.

Which of the following statements is true about economics?

a)

It only involves people who work

b)

It is about how money is created, used, and exchanged

c)

It is not related to families or communities

d)

It does not affect anyone’s choices

3.

Which of the following best explains why everyone has a place in the economy?

a)

Everyone uses goods and services and is part of a community

b)

Only people with jobs are part of the economy

c)

Only people who spend money are part of the economy

d)

Only business owners are part of the economy

4.

Which of the following is an everyday action that connects you to the economy?

a)

Working for wages

b)

Reading a book

c)

Playing sports

d)

Watching TV

5.

Buying goods and services is an example of what?

a)

An action that connects you to the economy

b)

A way to avoid taxes

c)

A form of entertainment

d)

A government policy

6.

How does working for wages connect you to the economy?

a)

It allows you to earn money, which you can use to buy goods and services

b)

It is unrelated to the economy

c)

It only benefits the government

d)

It is a form of entertainment

7.

Which action is directly related to the movement of money in the economy?

a)

Paying taxes

b)

Sleeping

c)

Drawing pictures

d)

Reading novels

8.

Based on the material, which of the following is a way the government is involved in the economy?

a)

By collecting taxes

b)

By selling only goods

c)

By ignoring money movement

d)

By not interacting with businesses

9.

Which of the following is NOT a feature of a barter system?

a)

Using money for exchange

b)

Exchanging goods directly

c)

No use of money

d)

Trading items

10.

Which system relies on the idea that favors will be returned later?

a)

Gift economy

b)

Barter system

c)

Modern money system

d)

Credit system

11.

Why might someone participate in a gift economy?

a)

To build trust and relationships

b)

To earn money quickly

c)

To avoid trading goods

d)

To use credit cards

12.

What is the main motivation for businesses in a market economy?

a)

Economic incentives

b)

Government orders

c)

Social traditions

d)

Random chance

13.

What does “laissez-faire” mean in the context of a market economy?

a)

To let be

b)

To control strictly

c)

To compete

d)

To regulate

14.

What is the role of supply and demand in a market economy?

a)

Determines prices

b)

Sets government policies

c)

Decides business ownership

d)

Controls competition