Economics Test Review

To sell goods and services in another country

export

Forms of work that people do for other people

services

Things people buy or sell

goods

To depend on each other

interdependent

The amount of money people earn for work

income

A form of money that people in a country use

currency

To buy goods or services from other countries

import

Someone who buys goods and services sold by a producer

consumer

A person who makes and sells goods

producer

Which of the following is NOT an example of a services provided by the government?

a. Restaurant

b. Police department

c. Library

d. School

restaurant

The cotton used to make blue jeans is an example of a(n) ________ resource.

a. Entrepreneur

b. Capital

c. Human

d. Natural

natural

The machine that sews the pockets on a pair of blue jeans is an example of a(n) ___________ resource.

a. Entrepreneur

b. Capital

c. Human

d. Natural

capital

The person who owns the store where the blue jeans are sold is an example of a(n) _________

a. Entrepreneur

b. Capital

c. Human

d. Natural

entrepreneur

How does trading with other countries help consumers?

a. They have more choices.

b. They have fewer choices.

c. They can earn more money.

d. They will make fewer mistakes.

They have more choices.

When does using barter instead of money work?

a. When both parties have the same amount of money.

b. When one person has goods and the other has money.

c. When no one knows what the items cost.

d. When both people want what the other has.

When both people want what the other has.

What would happen to the price of a new TV if the supply decreased and it became hard to find?

a. The price would stay the same.

b. The price would go down.

c. The price would go up.

The price would go up.

At Christmas, a cool new XBOX game came out. However, the company that made it sent only a few copies to the stores. The demand for the game is very high. What is going to happen to the price?

a. The price will go down.

b. The price will go up.

c. The price will stay the same.

The price will go up.

The state of Florida had a very cold winter and it caused there to be very few oranges for customers to buy. What will the customers have to do if they want oranges?

a. Get them from another place

b. Never eat oranges again

c. Grow their own oranges

d. Eat a different fruit

Get them from another place

Jason has been saving his money to buy a new game for his DS. While watching TV, he notices that a new Lego building that he has been waiting for ha come out. He doesn’t have enough money for both items. He decides to get the new Lego building and continue saving for the DS game.

What is the cost of Jason getting the new Lego game?

What is the benefit of Jason getting the new Lego game?

Cost – he doesn’t get the DS game

Benefit – he gets the new Lego building