Economics

All 18 kids in Mrs. Grubb's class want to use a new pen, but there are only 2 pens. This is an example of ---

• profit

• scarcity

• free market

• donation

Henry Ford sold more cars at a lower price by doing what?

• using cheaper materials

• making smaller cars

• using an assembly line

• paying his employees less

Mrs. Truong's class is having a bake sale and very few people are buying cupcakes. Which is the best way for the class to sell more cupcakes?

• Raise the price

• Lower the price

• Make more cupcakes

• Eat the extra cupcakes

What does "free enterprise system" mean?

• The government places very few restrictions on business owners.

• The government tells owners what they have to sell.

What is a free market?

• Prices are determined by the government.

• Prices for goods and services are determined by the open market and the consumers (buyers)

Emily wants a new video game. When she arrives at the store, she sees a sign saying, "We're sorry, our shipment has been delayed for the next two weeks." What effect might the scarcity of the video game have on Emily?

• Emily will get the game tomorrow.

• Emily will get the game in a week.

• Emily will have to wait for two weeks and come back to see if the game is back in stock.

• Emily will have to come back in a month.

Emily wants a new video game. When she arrives at the store, she sees a sign saying, "We're sorry, our shipment has been delayed for the next two weeks." What effect might the scarcity of the video game have on the store?

• The store will lower the price to sell the game faster.

• The store will increase the price because of the high demand.

• The store will do nothing and keep the price the same.

• The store will decide to stop selling the game.

Ms. Tan makes bracelets. It costs her 50 cents to make a bracelet, but she sells them for $4.00. What might happen to her profits if she uses beads that cost $1.00?

• Her profits will stay the same.

• Her profits will go up because she is spending more on materials.

• Her profits will go down because she is spending more on materials.