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Lesson 3: Economic Choices — Practice Questions

  1. 1. What is the main reason you can't have everything you want?

    • A. Things are too expensive.
    • B. There isn't enough for everyone.
    • C. Stores run out of items sometimes.
    • D. People do not share enough.
  2. 2. Maria has two dollars. She wants to buy a juice box and a bag of chips, but she only has enough money for one. What must Maria do?

    • A. Ask for more money.
    • B. Take both items.
    • C. Make a choice between the items.
    • D. Wait for the items to go on sale.
  3. 3. Imagine a baker can only make ten loaves of bread each morning. Why can't everyone in town buy a loaf from her?

    • A. The baker does not want to sell to everyone.
    • B. The bread is a scarce good.
    • C. The people in town do not have enough money.
    • D. The bread is not tasty enough for them.
  4. 4. Scarcity means that our wants are greater than our resources. What is a direct result of scarcity?

    • A. People must make choices.
    • B. All prices for goods go up.
    • C. People stop wanting new things.
    • D. Stores close down for the day.
  5. 5. Which of these situations describes a problem of scarcity?

    • A. A store has many different kinds of cereal to choose from.
    • B. A library lets you borrow as many books as you want.
    • C. Two friends want to buy the last slice of pizza.
    • D. A farmer grows more vegetables than he can sell.
  6. 6. In a cost-benefit analysis, what does the 'cost' of a decision mean?

    • A. The good things that happen from a choice
    • B. How much money an item is worth to a seller
    • C. What you must give up when you make a choice
    • D. The total number of choices you have at a store
  7. 7. When you weigh the good parts of a choice against the things you'll give up to help you decide, what is this process called?

    • A. A cost-benefit analysis
    • B. Selling goods and services
    • C. Creating a new market
    • D. Checking for product scarcity
  8. 8. You have one hour of free time. You can either read a book or play outside. If you choose to play outside, what is a cost of that choice?

    • A. You get fresh air.
    • B. You have fun playing.
    • C. You don't get to read your book.
    • D. You can play a game with a friend.
  9. 9. When you make a choice about what to buy, what is a 'benefit'?

    • A. The money you must pay for an item
    • B. The good thing you get from your choice
    • C. The item that you decide not to buy
    • D. The place where you buy the item
  10. 10. You have $10. You can buy a new soccer ball or a video game. If you choose the soccer ball, what is a benefit of your choice?

    • A. You cannot play the new video game with friends.
    • B. The soccer ball costs you almost all of your money.
    • C. You can play outside and get exercise with your friends.
    • D. The video game might have been more fun to play indoors.