Lesson: Economics

Lesson Topic: Introduction to Economics

Chloe wants to buy a new pair of shoes, and there is a specific brand of shoes she wants. At Juan’s Shoe Store, the shoes are $40. At
Stephanie’s Sporting Goods, the shoes are $48. Chloe decides to buy the shoes from Juan’s Shoe Store. How does this example show how a
free market economy works?

Chloe decided the type of shoes she wanted to buy.

The shoe stores decided how much to sell the shoes for.

Chloe decided which store to buy the shoes from.

Chloe wanted to buy a new pair of shoes.

Question 2:

In North Korea, the government owns and runs all of the businesses. Does North Korea have a free market economy?

yes, because the government controls all of the businesses in a free market economy

yes, because every country in the world has a free market economy

no, because individuals own and run businesses in a free market economy

no, because none of the countries in Asia have a free market economy

Question 3:
 In the summer Carla wants to buy a new bike, but it is too expensive for her to buy. In the winter Carla notices that the bike has gone on sale,
and she can now afford it. Carla wonders why the bike went on sale. What is the most likely explanation?

Fewer people want to buy the bike in the winter.

Fewer people wanted to buy the bike in the summer.

More people want to buy the bike in the winter.

More people wanted to buy the bike in the summer.

Question 4:

Imagine there is a sudden decrease in demand for Bell’s cars. Which of the following may have contributed to this?

Consumers discovered that the brakes on the cars are not working properly.

The company released a new sound system for its cars.

The company lowered the prices of the cars.

A new advertisement for the cars was aired on television.

Question 5:

Lightning Cable begins offering cable Internet and television in South Lake. Now, consumers in South Lake can choose between Central Cable
and Lightning Cable. What will Central Cable most likely do as a result?

stop selling cable

lower the price of their cable

offer more television channels

advertise more

increase the speed of their Internet

Question 6:

What is an economy?

the rate at which goods and services are produced

a system of producing, selling, and buying products

the natural, capital, and human resources used to make products

Question 7:

What is a free market economy?

an economy in which there are only a few major industries that producers and consumers participate in

an economy in which individuals make the decisions about what should be produced and how much products should cost

an economy in which the government makes the decisions about what should be produced and how much products should cost

an economy in which producers never compete with each other to sell products, and the cost of products never change

Question 8:

What is a producer?

a person who buys goods and services

a person who is highly skilled in his or her job

a person who makes goods or provides services

a person who does not participate in the economy

Question 9:

What is a consumer?

a person who buys goods and services

a person who starts his or her own business

a person who does not participate in the economy

a person who is highly skilled in his or her job

Question 10:

What is supply?

the amount of a product that is available

the amount of a product that consumers want to buy

the price of a product that is set by the producer

Question 11:

What is demand?

consumers’ need or desire to buy a product

producers' need or desire to sell a product

the price of a product that is set by the consumer

the price of a product that is set by the producer

Question 12:

What is competition?

the constant changing of prices due to supply and demand

an agreement between producers that determines the price at which goods will be sold for

the influence of government on the economy

rivalry between producers to attract more customers and make the most money

Question 13:

Brenna’s family is traveling to Florida during her school’s spring break. A plane ticket from Wisconsin to Florida is $700 during the week of her
spring break. The week before spring break it is only $400. Why might this be?

The airline company has a high supply of plane tickets during spring break.

There is an increase in demand for plane tickets during spring break, so the airline company increased the prices.

There is a decrease in demand for plane tickets during spring break, so the airline company increased the prices.

Question 14:
 Adam and Jennifer own a bike company. They have 200 bikes to sell, but only 100 people want to buy the bikes. What will Adam and Jennifer
most likely do?

lower the price of the bikes and make fewer bikes

lower the price of the bikes and make more bikes

increase the price of the bikes and make more bikes

increase the price of the bikes and make fewer bikes

Question 15:

A new construction company, Brittany’s Builders, opens in Silver Harbor. How will the cost of construction in Silver Harbor most likely change
as a result?

The cost of construction will decrease.

The cost of construction will increase.

The cost of construction will not change.

Question 16:

Correct the statement below:

In a free market economy, producers and consumers make choices about which products to buy and sell.

In a free market economy, the government makes choices about which products to buy and sell.

In a free market economy, only consumers make choices about which products to buy and sell.

In a free market economy, only producers make choices about which products to buy and sell.

This statement is already correct.

Question 17:
 Jada owns a clothing store. She buys clothes from factories and sells them to customers. Which of the following statements correctly describes
Jada?

Jada is a consumer.

Jada is a producer.

Jada is both a consumer and a producer.

Jada is neither a consumer nor a producer.

Question 18:

Which of the following affect the prices of goods in a market economy?

Check all that are true.

the government

the demand for a product

competition between producers

the supply of a product

Question 19:

The Sunglass Stand has 25 pairs of sunglasses to sell, but 100 people want to buy the sunglasses. This means that the supply of the
sunglasses is __________, and the demand for the sunglasses is __________.
 high; low

low; high

high; high

low; low

Question 20:

The Sunglass Stand has 25 sunglasses to sell, but 100 people want to buy the sunglasses. What will the owners of The Sunglass Stand most
likely do?

Check all that are true.

make fewer sunglasses

decrease the price of the sunglasses

increase the price of the sunglasses

make more sunglasses

Question 21:

Which of the following will most likely happen as a result of competition between producers?

Check all that are true.

The prices of products are lowered.

The quality of products is lowered.

The prices of products increase.

The quality of products increases.

Lesson: Economics
Lesson Topic: Introduction to Economics
Question 1:
The shoe stores decided how much to sell the shoes for. | Chloe decided the type of shoes she wanted to buy. | Chloe decided which store to buy the shoes from.

Question 2:
no, because individuals own and run businesses in a free market economy

Question 3:
Fewer people want to buy the bike in the winter. | More people wanted to buy the bike in the summer.

Question 4:
Consumers discovered that the brakes on the cars are not working properly.

Question 5:
lower the price of their cable | offer more television channels | increase the speed of their Internet | advertise more

Question 6:
a system of producing, selling, and buying products

Question 7:
an economy in which individuals make the decisions about what should be produced and how much products should cost

Question 8:
a person who makes goods or provides services

Question 9:
a person who buys goods and services

Question 10:
the amount of a product that is available

Question 11:
consumers’ need or desire to buy a product

Question 12:
rivalry between producers to attract more customers and make the most money

Question 13:
There is an increase in demand for plane tickets during spring break, so the airline company increased the prices.

Question 14:
lower the price of the bikes and make fewer bikes

Question 15:
The cost of construction will decrease.

Question 16:
This statement is already correct.

Question 17:
Jada is both a consumer and a producer.

Question 18:
competition between producers | the supply of a product | the demand for a product

Question 19:
low; high

Question 20:
increase the price of the sunglasses | make more sunglasses

Question 21:
The prices of products are lowered. | The quality of products increases.