Economics - Unit 4 Assessment

1. If the price of an item is extremely high, how is the consumer most likely to react if he/she/they must have the item today?

• The consumer may realize the demand is high and wait until next time to buy.
• The consumer decides to wait until they are on sale.
• The consumer buys many of the items at once.
• The consumer purchases a similar item at a lower cost.

2. Which of the following is not a service?

• hair stylist
• automobile mechanic
• pet groomer
• potato chips

3. Which of the following is an example of a natural resource?

• chairs
• water
• teacher
• scissors

4. Which of the following is an example of a capital resource?

• assembly line
• police officer
• oil
• bus

5. Which of the following is an example of a human resource?

• baker
• table
• wind
• money

6. In a market economy, consumers can do which of the following?

• set their own income
• spend their money in only the United States
• shop in different places to find the best value for their money
• shop only at one store

7. When more than one business sells the same good or service it is called __________________________.

• supply
• demand
• competition
• resources

8. Which is not an example of an incentive?

• sale
• coupons
• income
• discounts

9. The assembly line changed the way cars were made. It allowed manufacturers to ___________________________.

• increase the price of automobiles
• hire more workers to build cars
• allow robots to takeover the entire factory
• decrease the amount of time it takes to build a car

10. Hot Cheetos are the most popular item in the school store. They always run out before everyone who wants them is able to buy them. This is an example of which of the following?

• opportunity cost
• competition
• substitute goods
• supply and demand