Students reason about supply and demand, opportunity cost, and economic roles. Part A has four multiple-choice questions about a toy shortage and price, an item someone chose not to buy, and the best example of a service. Part B has five fill-in-the-blank problems about price rising when supply is low, earning an income, and clothing as a need.
Predicting price changes from supply and demand scenarios requires applying economic logic rather than simply recalling definitions.
Style:
Economics Basics
Part A: Multiple Choice
Circle the best answer for each question.
1. A toy store has only five dolls left and twenty children want one. What will most likely happen to the price?
A) The price will go down.
B) The price will stay the same.
C) The price will go up.
D) The store will give them away.
2. Maria wants to buy a book and a puzzle but only has enough money for one. The item she does not pick is her ___?
A) supply
B) demand
C) opportunity cost
D) service
3. Which of the following is the best example of a service?
A) A loaf of bread from a bakery.
B) A librarian helping you find a book.
C) A pair of sneakers from a shoe store.
D) A bicycle from a toy shop.
4. A farmer grows tomatoes and sells them at a stand. In this example the farmer is a ___?
A) consumer
B) buyer
C) producer
D) saver
Part B: Fill in the Blank
Write the correct answer on each line.
1. When supply is low and demand is high, the price usually goes up.
2. A person who earns money by working at a job is earning an income.
3. Clothing is a need because people must wear it to stay safe and warm.
4. A lemonade stand owner who makes and sells drinks is a producer.
5. Choosing to save your money now so you can buy a bike later shows good planning.
Economics Basics
★ Part A: Multiple Choice
Circle the best answer for each question.
1. A toy store has only five dolls left and twenty children want one. What will most likely happen to the price?
A) The price will go down.
B) The price will stay the same.
C) The price will go up.
D) The store will give them away.
2. Maria wants to buy a book and a puzzle but only has enough money for one. The item she does not pick is her ___?
A) supply
B) demand
C) opportunity cost
D) service
3. Which of the following is the best example of a service?
A) A loaf of bread from a bakery.
B) A librarian helping you find a book.
C) A pair of sneakers from a shoe store.
D) A bicycle from a toy shop.
4. A farmer grows tomatoes and sells them at a stand. In this example the farmer is a ___?
A) consumer
B) buyer
C) producer
D) saver
★ Part B: Fill in the Blank
Write the correct answer on each line.
1) When supply is low and demand is high, the price usually goes up.
2) A person who earns money by working at a job is earning an income.
3) Clothing is a need because people must wear it to stay safe and warm.
4) A lemonade stand owner who makes and sells drinks is a producer.
5) Choosing to save your money now so you can buy a bike later shows good planning.
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9 Questions
12-18 minutes
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