Economics for First Graders: Understanding Money and Jobs

Question 1

Which of these is NOT a job that people do?

Accepted Answer

Animal

Answer

Doctor

Answer

Teacher

Question 2

What is an example of supply and demand?

Accepted Answer

A farmer grows more corn because the price has increased.

Accepted Answer

A factory produces more cars because people want to buy them.

Answer

A store sells fewer apples because the government has given them money.

Answer

A family buys a new house because they have more money.

Question 3

How does globalization help businesses?

Accepted Answer

It makes it easier for businesses to sell goods and services around the world.

Answer

It makes it harder for people to find jobs in their own countries.

Answer

It makes the economy less stable.

Question 4

If you were the mayor, what could you do to create more jobs in your city?

Accepted Answer

Invest in education and training

Accepted Answer

Offer tax breaks to businesses that create new jobs

Answer

Raise taxes on businesses

Answer

Hire more government workers

Question 5

We can't make everything we want because we don't have enough of everything. What is this called?

Accepted Answer

Scarcity: We don't have enough of everything.

Answer

Abundance: We have too much of everything.

Answer

Variety: We have many different things.

Answer

Excess: We have more than enough of everything.

Question 6

What is financial literacy and why is it important for everyone to know about it?

Accepted Answer

Financial literacy is the ability to manage money and make smart financial choices.

Answer

Financial literacy is the study of how businesses make money.

Answer

Financial literacy is only important for grown-ups.

Answer

Financial literacy is about learning how to get rich quickly.

Question 7

How can natural resources like trees and water help a country's economy?

Accepted Answer

Provide raw materials for businesses to make products

Accepted Answer

Attract visitors, bringing money into the country

Accepted Answer

Be sold to other countries for money

Answer

Don't help a country's economy grow

Question 8

How do we know if a country's economy is getting stronger?

Accepted Answer

We look at how much money the country makes.

Answer

We count how many people live in the country.

Answer

We see how many new businesses open.

Question 9

Imagine you have a lemonade stand. How can you make more lemonade available to sell?

Accepted Answer

Make a bigger batch of lemonade.

Accepted Answer

Get more lemons to make more lemonade.

Answer

Charge more money for the lemonade.

Answer

Wait for more people to come and buy lemonade.

Question 10

What is one way the government helps the economy?

Accepted Answer

Set taxes for businesses and people

Answer

Set prices for things

Answer

Give jobs to everyone

Answer

Print extra money

Question 11

How do banks help people take care of their money?

Accepted Answer

Banks keep our money safe and let us get it when we need it.

Answer

Banks only give money to adults.

Answer

Banks make all the money in the world.

Question 12

When prices of things we buy, like toys or groceries, go up over time, what is that called?

Accepted Answer

Inflation

Answer

Deflation

Answer

Shortage

Answer

Recession

Question 13

When the government spends more money than it gets from taxes, what is that called?

Accepted Answer

A budget deficit

Answer

A balanced budget

Answer

A budget surplus

Question 14

How do new machines and tools affect the number of jobs available?

Accepted Answer

Machines and tools can create new jobs that people didn't have before.

Accepted Answer

Machines and tools can replace some jobs that people used to do.

Answer

Machines and tools have no impact on the number of jobs available.

Question 15

When the government makes it less expensive for businesses to borrow money, what do businesses do?

Accepted Answer

Borrow more money and hire more workers.

Answer

Borrow less money and hire fewer workers.

Answer

Nothing changes in the job market.

Question 16

When the price of a toy goes down, what will most likely happen?

Accepted Answer

People will buy more toys.

Answer

People will buy fewer toys.

Answer

The store will earn more money.

Answer

The toy will be made of better materials.

Question 17

What does GDP stand for, and what does it measure?

Accepted Answer

GDP stands for Gross Domestic Product and measures the total value of goods and services produced in a country in a year.

Answer

GDP stands for Gross Domestic Pay and measures the total amount of money earned by people in a country.

Answer

GDP stands for Gross Domestic Population and measures the total number of people living in a country.

Answer

GDP stands for Gross Domestic Power and measures the military strength of a country.

Question 18

When we save money in the bank, why do we earn more money over time?

Accepted Answer

The bank uses our money to earn more money and shares some of that money with us.

Answer

The bank gives us free money.

Answer

The money grows on its own.

Answer

The bank manager is kind and gives us extra money.

Question 19

When people really like something, what do you think will happen to how much of it they want?

Accepted Answer

They will want more of it.

Answer

They will want less of it.

Answer

They will want the same amount of it.

Question 20

You're at the store and see a toy you want. Why is it important to think about the toy's price and how much money you have before buying it?

Accepted Answer

It helps you make wise choices about spending your money.

Answer

It helps you understand why some people have more money than others.

Answer

It helps you predict how the economy will do in the future.

Question 21

In a market economy, how do we figure out what to make and how much of it to make?

Accepted Answer

Prices help us make the decision.

Answer

The government makes the decision for us.

Answer

We decide by flipping a coin.

Answer

We all vote on what to make.

Question 22

When different countries trade goods and services with each other, what can be some of the different challenges and opportunities that come up?

Accepted Answer

It can be hard to find the best prices for goods and services because different countries might have different costs.

Accepted Answer

It can create more jobs in different countries because new businesses might start up to sell the traded goods or services.

Accepted Answer

It can lead to disagreements between countries if they have different rules and ideas about how trade should work.

Answer

It can only happen between countries that are right next to each other.

Question 23

Which of these is NOT a way to earn money?

Accepted Answer

Borrowing money from your friends

Answer

Working a job

Answer

Getting allowance for helping around the house

Answer

Winning a contest prize

Question 24

What is something you cannot do without?

Accepted Answer

Food and water

Answer

A favorite toy

Answer

A new video game

Answer

Tickets to a concert

Question 25

What happens when there is more of something than people want to buy?

Accepted Answer

There is a surplus

Answer

There is a shortage

Answer

The price goes up

Answer

People start buying more of it

Question 26

Which of these is something that we get from nature?

Accepted Answer

Trees

Answer

Books

Answer

Cars

Answer

Computers

Question 27

What do we call it when two people exchange something without using money?

Accepted Answer

Trading

Answer

Sharing

Answer

Buying

Answer

Selling

Question 28

Who helps keep people healthy?

Accepted Answer

Doctors and nurses

Answer

Teachers

Answer

Police officers

Answer

Firefighters

Question 29

What is a plan for how to spend money called?

Accepted Answer

A budget

Answer

A wish list

Answer

A savings account

Answer

A tax form

Question 30

What is a good way to save money?

Accepted Answer

Putting it in a piggy bank or savings account

Answer

Spending it all at once

Answer

Borrowing more money

Answer

Giving it all away

Question 31

Why do we need to pay taxes?

Accepted Answer

It helps the government provide things for everyone

Answer

It makes us rich

Answer

It is a waste of money

Answer

Only grown-ups have to pay taxes

Question 32

How do people earn money?

Accepted Answer

By working a job

Answer

By going to school

Answer

By playing outside

Answer

By watching TV

Question 33

What do we call the things that we want and need to live comfortably?

Accepted Answer

Goods and services

Answer

Money

Answer

Jobs

Answer

Toys

Question 34

When there are more people who want something than there are things available, what happens to the price?

Accepted Answer

It goes up

Answer

It goes down

Answer

It stays the same

Answer

It disappears

Question 35

When we trade something, what do we call the thing we give away?

Accepted Answer

A good

Answer

A service

Answer

Money

Answer

A want

Question 36

Which of these is NOT a type of money we use?

Accepted Answer

Rocks

Answer

Coins

Answer

Paper bills

Answer

Credit cards

Question 37

What is a budget?

Accepted Answer

A plan for how to spend money wisely

Answer

A list of our favorite things

Answer

A way to make money

Answer

A type of game

Question 38

What is the difference between a want and a need?

Accepted Answer

Wants are things we would like to have, while needs are things we must have to survive

Answer

Needs are things we want, while wants are things we do not need

Answer

Wants are more important than needs

Answer

Needs are more expensive than wants

Question 39

Which of these is NOT a way that people earn money?

Accepted Answer

Getting a gift

Answer

Working

Answer

Selling things

Answer

Investing

Question 40

When there is a lot of demand for something, what usually happens to the price?

Accepted Answer

It goes up

Answer

It goes down

Answer

It stays the same

Answer

It becomes free

Question 41

What is the difference between a product and a service?

Accepted Answer

A product is something you can touch, and a service is something you can't.

Answer

A product is something you can't touch, and a service is something you can.

Answer

There is no difference.

Answer

A product is something that helps you, and a service is something that hurts you.

Question 42

Why do people trade with each other?

Accepted Answer

To get things they need or want

Answer

To make new friends

Answer

To have fun

Answer

To learn new things

Question 43

Which of these is a natural resource?

Accepted Answer

Trees

Answer

Cars

Answer

Computers

Answer

Buildings

Question 44

Which of these is a good way to save money?

Accepted Answer

Putting it in a bank

Answer

Keeping it under your pillow

Answer

Spending it all at once

Answer

Giving it away

Question 45

What does the term 'inflation' mean?

Accepted Answer

When prices go up

Answer

When prices go down

Answer

When the economy is doing well

Answer

When the economy is doing poorly

Question 46

What do people use to buy things?

Accepted Answer

Money

Answer

Food

Answer

Friends

Answer

Books

Question 47

When more people want to buy something than there is of that thing, what happens?

Accepted Answer

The price goes up

Answer

The price goes down

Answer

The thing becomes free

Answer

Nothing happens

Question 48

What is a job?

Accepted Answer

Something you do to earn money

Answer

Something you do for fun

Answer

Something you do at home

Answer

Something you do at school

Question 49

What do we call the person who makes something and sells it to others?

Accepted Answer

Producer

Answer

Consumer

Answer

Trader

Answer

Banker

Question 50

What is the name of the place where people buy and sell goods?

Accepted Answer

Store

Answer

Bank

Answer

School

Answer

Park

Question 51

When you save money, what are you doing?

Accepted Answer

Putting it in a safe place

Answer

Spending it on things you need

Answer

giving it away to charity

Answer

throwing it away

Question 52

What is the name of the thing you get when you sell something?

Accepted Answer

Money

Answer

Goods

Answer

Services

Answer

Profit

Question 53

What is the name of the person who buys something?

Accepted Answer

Consumer

Answer

Producer

Answer

Trader

Answer

Banker

Question 54

What is the name of the money that you have in the bank?

Accepted Answer

Savings

Answer

Income

Answer

Profit

Answer

Investment

Question 55

When people want something they don't have, what should they do?

Accepted Answer

Work to earn money to buy it

Answer

Ask someone for it

Answer

Take it without asking

Answer

Wait until it magically appears

Question 56

Which of these is NOT a real job?

Accepted Answer

Tree

Answer

Teacher

Answer

Doctor

Answer

Firefighter

Question 57

When there are more people who want something than there are things available, what happens?

Accepted Answer

The price goes up

Answer

The price goes down

Answer

The price stays the same

Answer

The things disappear

Question 58

What do we call the paper money we use in the United States?

Accepted Answer

Dollar

Answer

Peso

Answer

Euro

Answer

Yen

Question 59

Which of these is an example of trading?

Accepted Answer

Buying a toy at the store

Answer

Receiving a birthday present

Answer

Borrowing a book from the library

Answer

Finding money on the ground

Question 60

What is one important thing that governments do in our economy?

Accepted Answer

Provide services like schools and hospitals

Answer

Make sure everyone has enough money

Answer

Decide what jobs people can have

Answer

Take money from rich people and give it to poor people

Question 61

When people save money, what happens?

Accepted Answer

They have more money to spend later

Answer

The government takes their money

Answer

Their money disappears

Answer

They get a free gift

Question 62

Which of these is a natural resource?

Accepted Answer

Water

Answer

Car

Answer

Computer

Answer

Book

Question 63

What is the difference between a need and a want?

Accepted Answer

Needs are things we must have to live, wants are things we would like to have

Answer

Wants are things we must have to live, needs are things we would like to have

Answer

There is no difference between needs and wants

Answer

Needs are expensive, wants are cheap

Question 64

How does money help us?

Accepted Answer

It allows us to buy things we need and want

Answer

It makes us happy

Answer

It can make us fly

Answer

It is just a piece of paper