Economics Pretest

Which of the following items is not a good or service?

Which item is a service?

Businesses provide the goods and services we want by:

The three basic kinds of productive resources used to produce a house are :

Which of the following is an example of capital?

In economics, something is scarce when:

Opportunity cost means:

At the toy store, there are many things Sam want to buy. When he chooses a toy to buy, there will:

With her $2.00 Sally wants to buy one of these three things: a book, a bag of candy, or a belt. Her first choice is the candy and she buys that. The books was her second choice, and the belt was her third choice. What is the opportunity cost of her choice to buy the candy?

Mr. Johnson runs a business. He can produce chairs or windows. He decides to produce chairs. The opportunity cost of producing the chairs is:

To be successful, a business must:

Sarah baked some cookies. She traded six cookies to Joe for one of his toy cars. What is true about the trade?














































































































































































































































































































Sarah baked some cookies. She traded six cookies to Joe for one of his toy cars. What is true about the trade?

Money is very important in our economy because it:

Alice, Sam and Susan decided to earn money by making and selling cookies. To make the cookies, they specialized by using an assembly line. Alice missed the dough, Sam cut the cookies, and Susan baked them. They specialized because they wanted to:

What is one of the problems when making cookies by specializing on an assembly line?

Mr. Smith uses only his hands to weed his garden. He decided to buy a hoe to help his weed faster. The hoe will help Mr. Smith increase his:

Farmer Brown uses a hoe to raise corn. He wants to produce more corn so he buys a tractor. This is an example of increasing production by:

Sally is saving her money to purchase a $100 bike to use for her paper route. The opportunity cost of saving her money is:

Eric mows lawns with a push mower to earn money. He has earned $500. He wants a new expensive racing bike that costs $500, but decides instead to purchase a riding lawn mower to replace the push mower. Eric is hoping that purchasing the riding lawn mower will:

Sarah produces and sells birdhouses for $10 each. She sells three birdhouses each week. It costs her $8 to produce one birdhouse. Which of the following would increase the demand for Sarah's birdhouses?

It costs Sarah $8 to produce one birdhouse. How much profit does Sarah make when she sells one birdhouse for $13.00?

Which of the following would cause the cost of producing a birdhouse to change?