Students analyze three economic decision scenarios — opportunity cost of a book choice, reasons a country imports, and effects of business competition. Part B has five fill-in-the-blank problems about opportunity cost, budget function, and why countries trade.
Analyzing opportunity cost, trade motivations, and competition effects requires students to apply economic reasoning to decisions rather than just defining terms — building the applied thinking that connects classroom economics to real-world choices.
Style:
Economics: Supply & Demand
Part A: Multiple Choice
Circle the best answer for each question.
1. Maya has ten dollars and chooses to buy a book instead of a puzzle. What is her opportunity cost?
A) The ten dollars she spent
B) The book she bought
C) The puzzle she did not buy
D) The store she visited
2. Which best explains why a country would import goods from another country?
A) To make its own factories work harder
B) To get products it cannot make as cheaply itself
C) To give away all its own resources
D) To stop its citizens from shopping
3. A town has three pizza shops instead of one. How does this most likely affect pizza buyers?
A) Buyers have fewer choices and pay more
B) Buyers cannot find any pizza to buy
C) Buyers get better prices because shops compete
D) Buyers must travel farther to buy pizza
4. Which situation best shows the problem of scarcity?
A) A store has more shoes than anyone wants to buy
B) A family must choose between a vacation and fixing the roof
C) A factory makes thousands of identical pencils
D) A farmer grows enough food for the whole neighborhood
Part B: Fill in the Blank
Write the correct answer on each line.
1. Opportunity cost is what you give up when you make a choice.
2. A good budget helps a family track income and expenses each month.
3. Countries trade with each other so each can get what it needs.
4. Scarcity forces people to make decisions about how to use resources.
5. An entrepreneur takes risks to start a new business and earn profit.
Economics: Supply & Demand
★ Part A: Multiple Choice
Circle the best answer for each question.
1. Maya has ten dollars and chooses to buy a book instead of a puzzle. What is her opportunity cost?
A) The ten dollars she spent
B) The book she bought
C) The puzzle she did not buy
D) The store she visited
2. Which best explains why a country would import goods from another country?
A) To make its own factories work harder
B) To get products it cannot make as cheaply itself
C) To give away all its own resources
D) To stop its citizens from shopping
3. A town has three pizza shops instead of one. How does this most likely affect pizza buyers?
A) Buyers have fewer choices and pay more
B) Buyers cannot find any pizza to buy
C) Buyers get better prices because shops compete
D) Buyers must travel farther to buy pizza
4. Which situation best shows the problem of scarcity?
A) A store has more shoes than anyone wants to buy
B) A family must choose between a vacation and fixing the roof
C) A factory makes thousands of identical pencils
D) A farmer grows enough food for the whole neighborhood
★ Part B: Fill in the Blank
Write the correct answer on each line.
1) Opportunity cost is what you give up when you make a choice.
2) A good budget helps a family track income and expenses each month.
3) Countries trade with each other so each can get what it needs.
4) Scarcity forces people to make decisions about how to use resources.
5) An entrepreneur takes risks to start a new business and earn profit.
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9 Questions
12-18 minutes
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