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Unit 1 Day 2

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

If supply is low and demand is high, what usually happens to prices?

a)

Prices drop

b)

Prices rise

c)

Prices stay the same

d)

Prices are discounted

2.

Which term describes how much of something is available?

a)

Demand

b)

Price

c)

Supply

d)

Value

3.

If supply increases but demand stays the same, what is the most likely effect on prices?

a)

Prices rise

b)

Prices drop

c)

Prices stay the same

d)

Prices become unpredictable

4.

Why do prices usually rise when concert tickets are limited and many people want them?

a)

Because supply is high and demand is low

b)

Because supply is low and demand is high

c)

Because supply and demand are equal

d)

Because tickets are free

5.

Which situation would most likely cause prices to drop?

a)

High supply and high demand

b)

Low supply and high demand

c)

High supply and low demand

d)

Low supply and low demand

6.

Which of the following best explains the concept of supply and demand?

a)

The amount of money people have

b)

The relationship between how much is available and how much people want

c)

The number of stores selling a product

d)

The quality of a product

7.

Which of the following is a drawback of market economies?

a)

Large gaps between the wealthy and the poor

b)

Equal distribution of wealth

c)

Guaranteed job security for all

d)

Strict government control over resources

8.

Market economies may lead to which environmental issue?

a)

Overuse of natural resources

b)

Complete conservation of resources

c)

Ban on resource extraction

d)

Unlimited government funding for the environment

9.

How do market economies sometimes affect the environment?

a)

They may focus on profit over environmental protection.

b)

They always prioritize environmental health.

c)

They ban industrial production.

d)

They require companies to plant trees.

10.

Which of the following best summarizes the drawbacks of market economies?

a)

Social and environmental problems can occur.

b)

All citizens are wealthy.

c)

The government provides everything.

d)

There are no disadvantages.

11.

Why might market economies be harmful to the environment?

a)

They may encourage overuse of natural resources.

b)

They always protect endangered species.

c)

They ban pollution.

d)

They require recycling by law.

12.

Which of the following is NOT one of the three things needed to produce goods in a capitalist system?

a)

Technology

b)

Capital

c)

Labor

d)

Resources

13.

If a business in a capitalist system wants to increase its profits, which of the following should it focus on?

a)

Reducing expenses

b)

Increasing government control

c)

Decreasing wages

d)

Ignoring resources

14.

Why are tools and equipment important in a capitalist system?

a)

They are needed to produce goods.

b)

They are used to pay wages.

c)

They are sources of profit.

d)

They are natural materials.

15.

How does labor contribute to the production of goods in capitalism?

a)

By providing human work and skills

b)

By supplying natural materials

c)

By earning profits

d)

By owning businesses