Ch. 4 - Economics Grade 4 (Pearson)

Which items are "goods"?

• car salesman, nurse, teacher

• car, refrigerator, bicycle

• car, medicine, doctor

• police officer, governor, newspaper

Which items are "services"?

• car salesman, nurse, teacher

• car, refrigerator, bicycle

• car, medicine, doctor

• police officer, governor, newspaper

The USA operates in a ________________ economy.

• demand

• market

• command

• supply

What sector of the economy includes actors?

• service sector

• tourism sector

• entertainment sector

• manufacturing sector

In a free enterprise system, what is the answer to the economic question, "how should goods and services be produced?

• The should be produced by the government.

• The should be produced by the largest sector.

• They should be produced by the producers in the market.

• The should be produced by the consumers in the market.

If supply of a product is low and demand high the price will probably ______________.

• fall

• stay the same

• rise

If the supply of a product is greater than the demand the price of the product will probably _____________.

• fall

• stay the same

• rise

For a consumer, which is part of making an economic choice?

• The consumer makes goods and services to sell to others.

• The consumer moves to a place that has very few businesses.

• The consumer purchases everything he or she needs or wants.

• The consumer weighs his or her needs and wants before spending money.

Opportunity cost is ________________.

• what product you didn't want to begin with

• what you give up when you chose one thing over another

• the most popular product on the market

• the product you chose over another

Which example shows how a business can make a profit?

• produce a toy for $10 and sell it for $5

• produce a toy for $5 and sell it for $5

• produce a toy for $5 and sell it for $15

• produce a toy for $0 and sell it for $0