1. What economic opportunity is directly created by a state's geography if it has a long coastline with many natural harbors?
- A. Mining for coal deep underground
- B. Growing wheat on large, open plains
- C. Shipping and fishing industries
- D. Manufacturing computer chips
2. The state of Washington is a leader in the aerospace industry partly because the Boeing company was started there long ago. This fact shows that a state's economy can be shaped by its...
- A. climate alone.
- B. total population.
- C. unique history.
- D. distance from the ocean.
3. A state with many snowy mountains and cold winters would most likely specialize in which industry?
- A. Growing tropical fruits
- B. Businesses related to skiing and winter sports
- C. Cotton farming
- D. Operating beachfront hotels
4. If a state becomes famous for making a certain product, like cheese or cars, because of its resources and history, what is this process called?
- A. Taxation
- B. Scarcity
- C. Budgeting
- D. Specialization
5. Why might a state like Florida be able to specialize in growing crops like oranges and sugarcane?
- A. It has many large, industrial cities.
- B. It is covered by tall mountain ranges.
- C. Its warm climate and fertile soil are ideal for these crops.
- D. Its government passed laws forbidding other industries.
6. A family buys tickets to see a movie at the theater. In this situation, what economic role are they playing?
- A. They are acting as producers of the movie.
- B. They are acting as consumers of a service.
- C. They are creating a budget for the theater.
- D. They are paying taxes directly to the state.
7. What is a plan that helps people decide how to spend or save the money they have earned?
- A. A tax form
- B. A budget
- C. A price tag
- D. A job application
8. Sarah earns an allowance and wants to buy a new book. What should she make to plan how much to spend and how much to save?
- A. A list of all the books in the store
- B. A budget to track her money
- C. A letter to the book's author
- D. A map to the bookstore
9. Which of the following is the best example of a person acting as a consumer?
- A. Building a chair for a customer
- B. Cooking meals in a restaurant
- C. Buying a notebook for school
- D. Teaching a lesson to a class
10. Which activity describes someone acting as a producer?
- A. Eating dinner at a local cafe
- B. A mechanic fixing a car's engine
- C. Shopping for new clothes at the mall
- D. Making a personal list of things to buy