Multiple Choice
What can people use credit cards for?
a. order products from the Internet
b. make investments
c. deposit money in the bank
a. order products from the Internet
A company produces a comic book that becomes very popular. Many people want to buy it. What will the company probably do next?
a. lower the price of the comic book
b. give the comic book away
c. make more comic books
a. lower the price of the comic book
This allows a bank to pay a seller with money from the buyer's account
a. check
b. investment
credit card
a. check
this is part of a system that lets people buy goods and services now and pay for them later
a. mint
b. savings
c. credit card
c. credit card
Which of the following best describes a free market economy?
a. the products and services that businesses provide
b. the supply does not meet the demand of a product
c. people can make and sell any product or service allowed by law
c. people can make and sell any product or service allowed by law
What usually happens when a product becomes scarce?
a. its demand goes down
b. its price goes up
c. its producers lose money
b. its price goes up
this is money that is put in a bank to keep it safe
a. demand
b. savings
c. competition
b. savings
this is an amount of money that may grow in value
a. mint
b. investment
c. check
b. investment
Which of the following is one way a person can invest his or her money?
a. buying a small part of another person's business
b. purchasing a service
c. ordering goods over the Internet
a. buying a small part of another person's business
this is what happens when businesses sell the same goods and services in one area
a. check
b. credit card
c. competition
c. competition
What is one reason that people put their savings in a bank?
a. to lend money to the bank
b. to learn how to spend their money wisely
c. to make extra money from the investment
c. to make extra money from the investment
this is when consumers want to buy a good or a service
a. mint
b. savings
c. demand
c. demand
What is one effect of competition between companies?
a. the quality of the goods get worse
b. producers earn more money
c. prices stay low enough to attract consumers
c. prices stay low enough to attract consumers
Which of the following sentences uses the word demand correctly?
a. When many consumers want a good, a demand is created for it.
b. A person can create a demand as a plan for spending money.
c. Most families use their demand to pay for things they need everyday.
a. When many consumers want a good, a demand is created for it.
What can people use credit cards for?
a. order products from the Internet
b. make investments
c. deposit money in the bank
a. order products from the Internet
this is what money earns in a savings account at a bank
a. interest
b. demand
c. competition
a. interest
A company produces a comic book that becomes very popular. Many people want to buy it. What will the company probably do next?
a. lower the price of the comic book
b. give the comic book away
c. make more comic books
a. lower the price of the comic book
Which of the following sentences uses the word demand correctly?
a. When many consumers want a good, a demand is created for it.
b. A person can create a demand as a plan for spending money.
c. Most families use their demand to pay for things they need everyday.
a. When many consumers want a good, a demand is created for it.
Which of the following is one way a person can invest his or her money?
a. buying a small part of another person's business
b. purchasing a service
c. ordering goods over the Internet
a. buying a small part of another person's business
Which of the following best describes a free market economy?
a. the products and services that businesses provide
b. the supply does not meet the demand of a product
c. people can make and sell any product or service allowed by law
c. people can make and sell any product or service allowed by law