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Economics Post-Test

Answer all the questions the best you can. This test will be graded.

1. What is economics?

2. Which item is not a good or a service?
a. Pants
b. Pencil
c. Garbage
d. Haircut

3. Which item is a service?
a. Book
b. Gold
c. Dress
d. Haircut

4. Businesses provide the goods and services we want by:
a. Saving them
b. Wanting them
c. Producing them
d. Borrowing them

5. The three basic kinds of productive resources used to produce a house are:
a. Capital resources, money resources, human resources
b. Natural resources, human resources, capital resources
c. Natural resources, capital resources, government resources
d. Money resources, human resources, government resources

6. Which of the following is an example of capital?
a. Oil
b. Water
c. Work
d. Tractor

7. In economics, something is scarce when:
a. No one wants it
b. You can get it at no cost
c. Everyone has what they want
d. There is not enough for everyone to have all they want

8. Opportunity cost means:
a. The best thing you give up when you choose something
b. Your best choice
c. The price of your best choice
d. The price of productive resources

9. At the toy store, there are many things Sam wants to buy. When he chooses a toy to buy, there will:
a. Always be an opportunity cost
b. Never be an opportunity cost
c. Sometimes be an opportunity cost
d. Be two opportunity costs

10. With her $2.00 Sally wants to buy one of these three things: a comic, a bag of candy, or a yo-yo. Her first choice is the candy, and she buys that. The yo-yo was her second choice, and the comic was her third choice. What was the opportunity cost of her choice to buy the candy?
a. The comic
b. The yo-yo
c. The yo-yo and the comic
d. The price of the candy

11. Mr. Smith runs a business. He can produce chairs or windows. He decides to produce chairs. The opportunity cost of producing the chairs is:
a. The price of the chairs
b. The cost of paying many workers
c. The windows he now cannot produce
d. The price of the wood used to build chairs

12. Money is very important in our economy because it:
a. Is difficult to earn
b. Helps people to trade
c. Can be traded for gold
d. Is expensive to produce

13. Thomas is deciding which pet to buy. What should he do first?
a. Consider the costs and benefits of each pet
b. Pick a name for his pet
c. Look on the internet and pick the pet that is most popular
d. Buy the first animal he thinks of

14. Tanya can't afford to rent a video every weekend. Her problem is an example of:
a. Production
b. Taxes
c. Scarcity
d. Income

15. Jason wants to build a bird house. The hammer, saw, and paint brush he will use will are examples of:
a. Human resources
b. Capital resources
c. Currency
d. Natural resources

16. Which of these statements is most likely true?
a. Businesses and consumers both like to see items sell at high prices
b. Businesses and consumers both like to see items sell at low prices
c. Businesses like to sell at high prices and consumers like to buy at low prices.
d. Businesses like to sell at low prices and consumers like to buy at high prices.

17. When there is a lot of something, what would most likely occur?
a. The price would go down
b. The price would go up
c. Less people would want it
d. Both a and c

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18. We all experience scarcity? T F

19. Trees are producers? T F

20. People are both consumers and producers? T F

21. Computers are an example of a resource? T F

22. Weather can affect price? T F

23. As demand goes up, supply goes down? T F

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You want to buy a bicycle that costs $300. You only have $50 saved so far. You get an allowance of $10 a week. You can make $5 and hour babysitting or mowing lawns.

24. The lawn mower used to mow lawns is an example of
a. Capital resource
b. Natural resource
c. Human resource
d. Producer

25. When you baby-sit or mow a lawn, you are providing a
a. Job
b. Service
c. Producer
d. Good

26. Several months later, you have $300. You decide to buy a new video game that cost $25. What is the opportunity cost of your decision?
a. The video game
b. The bike you now can't afford
c. The $300
d. The $275

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27. Draw a line from the step to what to do at that step in making a decision based on the model we used in class.

28. List two things you learned about economics from this unit.
1.

2.