5th Grade Economics Review GSE

An agreed upon trade in which both parties benefit is a

• scarcity

• specialization

• voluntary exchange

• opportunity cost

Why did Texas cattle ranchers choose to participate in cattle trails during the turn of the century?

• increase quality of beef (better beef)

• new ways to cook beef

• better ways to perserve (keep) beef longer

• increased beef prices in the East

Barbara works at a mall near her house for a shop that sells clothes. She works 40 hours a week and is paid by the hour. Barbara is earning income by

• making money from an investment

• selling her labor to a private business

• selling her possessions (stuff) to other people

• collecting money from the government

Households are made up of

• people

• factories

• animals

• products

Which sector of the economy offers money services?

• households

• banks

• government

• private businesses

The government makes laws and collects

• food

• goods

• services

• taxes

The government uses tax money to provide private goods and services.

• true

• false

Private businesses offer goods and services in hopes of making a profit.

• true

• false

Banks do not have to obey laws.

• True

• False

These people risk money and time to start a business that offers a good or service.

• economists

• bankers

• entrepreneurs

• consumers