What is Economy?
Which best explains what causes someone to become a consumer?
A. A person needs or wants something.
B.A person has spent time deciding what to purchase.
C. A person wants to make money by selling something.
D. A person has made something and wants to share it with others.
A. A person needs or wants something.
Bartering is __________.
A. the type of money used in a particular place
B. the profit that a business earns over a period of time
C. the exchange of one type of good or service for another
D. the risk an entrepreneur takes when starting a new business
C. the exchange of one type of good or service for another
Which statement expresses the meaning of scarcity?
A Working at a job like babysitting can earn you money.
B The amount of something you want or need may be limited.
C When you buy something, you give up the value of something else.
D Businesses try to get you to buy something by putting a product on sale.
B The amount of something you want or need may be limited.
A woman who owns a business in which the government sets the prices operates in a __________.
A market economy
B command economy
C free enterprise system
D private property system
B command economy
If a bakery buys equipments, and materials for making bread, this is a business ____________________.
expense
For a consumer, which is part of making an economic choice?
A The consumer makes goods and services to sell to others.
B.The consumer moves to a place that has very few businesses.
C. The consumer purchases everything he or she needs or wants.
D. The consumer weighs his or her needs and wants before spending money.
D. The consumer weighs his or her needs and wants before spending money.
The price of various goods has been steadily rising for months. As a result, people are not able to buy things they need for the same amount of money as they could a year ago. This is evidence of __________.
A profit
B inflation
C supply and demand
D bartering and borrowing
B inflation
Which is an example of a negative incentive?
A A frozen yogurt shop opens up next door to a school.
B A famous athlete appears on a commercial for running shoes.
C A smartphone store is running a “buy-one-get-one-free” offer.
D The cost of an airplane ticket goes up the longer you wait to book it.
D The cost of an airplane ticket goes up the longer you wait to book it.
A good that is shipped from the United States to another country and then sold there is called an __________.
Export
Anaya has her own bakery. After she paid for the electric bill, water bill, materials for baking, and her employees. She has $25,000NT left. This is her _______________.
profit.
In a free enterprise system, what is the answer to the economic question, “How should goods and services be produced?”
A. They should be produced by the government.
B. They should be produced by the largest sector.
C. They should be produced by producers in the market.
D. They should be produced by consumers in the market.
C. They should be produced by producers in the market.
Which example shows how a business can make a profit?
A produce a book for $0 and sell it for $0
B produce a book for $5 and sell it for $5
C produce a book for $5 and sell it for $15
D produce a book for $15 and sell it for $5
C produce a book for $5 and sell it for $15
Which is an example of an economic decision?
A seeing an advertisement
B helping a farmer plant or pick crops
C purchasing a certain cereal over another
D wanting to cheer for your favorite team at a game
C purchasing a certain cereal over another
Greater productivity results in products being cheaper to produce. A product is cheaper to produce results in the price of the product decrease. The price of the produce decrease results in ___________________.
Consumers have more money to spend on other products.
Janice wants to buy a new car. She uses that money she earned at work to buy groceries, pay rent, pay bills. She cannot buy the car, the car is her __________.
opportunity cost.
What sector of the economy includes teachers?
A services sector
B tourism sector
C entertainment sector
D manufacturing sector
A services sector
Which reason explains why an entrepreneur’s business might fail?
A Materials were too cheap.
B The company was not profitable.
C A bank would not loan any money.
D There was not enough competition.
B The company was not profitable.
Why do banks offer interest to their customers?
A Interest is a positive incentive for customers to keep their money at that bank.
B Customers who earn interest are more likely to buy stocks in companies that the banks own.
C Banks use the interest customers earn and loan it to the Federal Reserve in exchange for profits.
D As interest is subtracted from customers’ bank accounts, the Federal Reserve replaces it at a higher rate.
A Interest is a positive incentive for customers to keep their money at that bank.
The effect of scarcity is:
A Consumers pay less for a product.
B Consumers see their incomes go down.
C Consumers are faced with fewer opportunity costs.
D Consumers are less likely to have their needs and wants met.
D Consumers are less likely to have their needs and wants met.
Emma works at Bao-Chen shoe factory, she is in charge of tying the shoe laces. This is an example of __________.
Specialization.
A public park is an example of __________.
A. a good produced by the government that is available to everyone
B. a service provided by the government that protects private property
C. a good consumed by the government that supports private companies
D. a service produced by the government that is available only to property owners
A. a good produced by the government that is available to everyone
A successful business must create a product or service that has enough __________ to meet a high __________.
A supply; price
B demand; profit
C profit; demand
D supply; demand
D supply; demand
Going to college is an economic incentive for some people because a college education can __________.
A lead to fewer opportunity costs
B be required to get a high-interest bank loan
C help people make more important economic choices
D result in skills that are required for higher-paying jobs
D result in skills that are required for higher-paying jobs
An Uber driver's job is a type of _______________ job.
A. demandC. service
Globalization.