Economics Review- Sixth Grade Squad

Which two countries would be likely to trade with one another?

• Two countries that are located far away from each other

• Two countries that both have about the same population

• Two countries that speak the same language

• Two countries that each specialize in producing different goods

What is the main reason that different countries trade with one another?

• Most countries produce too many goods and must get rid of them

• Different countries specialize in producing different kinds of goods

• Different countries have different numbers of people living in them

• The different countries of the world are united by a shared banking system

How are prices set in a market?

• Only businesses set prices

• Only customers set prices

• The government sets prices

• Supply and demand set prices

There is only one gas station on a stretch of highway. Then two more gas stations open next to the first. Demand for gas does not change during this time. What will happen to the price of gas on this stretch of highway and why?

• The price of gas will increase because there is less competition among businesses

• The price of gas will decrease because there is less competition between businesses

• The price of gas will increase because there is more competition among businesses

• The price of gas will decrease because there is more competition among businesses

Does the following characteristic describe supply or demand?

The amount of a good consumers are willing and able to purchase

• supply

• demand

Does the following characteristic describe supply or demand?

As price increases, quantity decreases

• supply

• demand

Does the following characteristic describe supply or demand?

As price increases, quantity increases

• supply

• demand

Does the following characteristic describe supply or demand?

The amount of a good a producer is willing and able to make available

• supply

• demand

In which of these situations will the price of oil go up?

• Some companies reduce the amount of oil export

• More countries invest in regional oil production

• New technology makes drilling for oil easier

• New oil reserves are discovered in Russia

What are the 3 fundamental /basic questions of economics?

• When to produce?

• How to produce?

• Who to produce for?

• What to produce?

• How much to sell for?