Economics for 3rd Graders: Learn the Basics of Supply and Demand

Question 1

When demand for a product goes up, what happens to its price?

Accepted Answer

It goes up.

Answer

It goes down.

Answer

It stays the same.

Question 2

Which of these is a **service**?

Accepted Answer

B. A haircut

Answer

A. A car

Answer

C. A loaf of bread

Question 3

In the circle of money movement, businesses provide products and services to families. What do families give to businesses in return?

Accepted Answer

Work

Answer

Taxes

Answer

Profit

Answer

Natural resources

Question 4

Sometimes, trading goods with other countries can be bad for a country. Why might this be true?

Accepted Answer

It can cause some people to lose their jobs.

Answer

Trading with other countries always helps a country.

Question 5

The government has recently increased the minimum wage. How might this affect businesses and workers?

Accepted Answer

Businesses might raise prices to pay for the higher wages, which could lead to fewer people buying their products or using their services.

Accepted Answer

Workers might have more money to spend on things they need and want, which could help the economy grow.

Answer

The government will raise taxes to pay for the higher minimum wage.

Answer

The minimum wage won't affect businesses or workers at all.

Question 6

When the price of something increases over time, like the candy bar you like going from $0.50 to $0.75, what is that called?

Accepted Answer

Inflation

Answer

Devaluation

Answer

Deflation

Answer

Hyperinflation

Question 7

What is a benefit of a market economy?

Accepted Answer

People can choose from many different products and services.

Answer

The government controls all businesses.

Answer

The government provides all basic needs.

Question 8

What economic indicator tracks the average change in prices of goods and services over time?

Accepted Answer

Consumer Price Index (CPI)

Answer

Gross Domestic Product (GDP)

Answer

Unemployment Rate

Question 9

How does economic stability help a country's economy?

Accepted Answer

Businesses are more likely to invest and create jobs.

Answer

The government always has enough money to spend.

Answer

People are more likely to save money.

Answer

It has no impact on the economy.

Question 10

How can inflation negatively affect consumers?

Accepted Answer

It makes things more expensive

Answer

It creates more jobs

Answer

It means interest rates go down

Answer

It helps people save more money

Question 11

A store has a lot of toys that aren't selling. What should the store do to encourage customers to buy them?

Accepted Answer

Lower the price of the toys to make them more attractive.

Answer

Raise the price of the toys to earn more money.

Answer

Stop selling toys and switch to selling something else.

Question 12

How does the government impact how income is shared among people in a society?

Accepted Answer

By setting taxes and offering support programs

Answer

By managing the amount of money in circulation and interest rates

Answer

By setting rules for businesses and trade

Answer

By providing education and job training

Question 13

You have a lemonade stand with 10 cups of lemonade to sell to 10 customers. How can you sell all the lemonade and earn the most money?

Accepted Answer

Charge different prices to different customers based on how much they are willing to pay.

Answer

Sell all the lemonade at the same price.

Answer

Give away the lemonade for free to attract more customers.

Answer

Make more lemonade so you have enough for everyone.

Question 14

If the number of a product available suddenly goes down, what effect will it have on the price?

Accepted Answer

The price will increase

Answer

The price will decrease

Answer

The price will stay the same

Answer

There is not enough information to say

Question 15

What is something consumers do in an economy?

Accepted Answer

Buy the goods and services that businesses make

Answer

Make goods

Answer

Control how much money is in the economy

Answer

Set the prices of goods

Question 16

How can you tell if something is a need or a want?

Accepted Answer

Needs are things you have to have to survive, while wants are things you would just like to have.

Answer

Wants are things you have to have to survive, while needs are things you would just like to have

Answer

There is no difference between needs and wants

Answer

Wants are more important than needs

Question 17

How do we decide who gets what goods and services in a market economy?

Accepted Answer

The price of the goods and services decides

Answer

The government decides

Answer

We draw names out of a hat

Answer

The oldest person in the community decides

Question 18

Prices are an important part of the marketplace. What is NOT something that can affect the supply of goods or services?

Accepted Answer

Personal preferences

Answer

Weather conditions

Answer

Taxes

Answer

Changes in technology

Question 19

Imagine your favorite video game. When the price of your game increases, what is likely to happen to the number of people who buy it?

Accepted Answer

Fewer people will want to buy the game

Answer

More people will want to buy the game

Answer

The number of people who want to buy the game will stay the same

Answer

It's hard to say

Question 20

When we talk about economics, we often talk about different kinds of things. Which of these is an example of something that helps businesses make more products?

Accepted Answer

Computer

Answer

Energy drink

Answer

Toy train

Answer

Comic book

Question 21

What's the difference between something you really need and something you just want?

Accepted Answer

You can't live without a need, but a want isn't necessary.

Answer

Wants are more important than needs.

Answer

Needs are different for each person.

Answer

There is no difference between a need and a want.

Question 22

Imagine you're planning a birthday party. What is the main reason you might create a budget?

Accepted Answer

To figure out how much money you have and how to spend it

Answer

To make sure you have enough money for a fancy cake

Answer

To save money for a future party

Answer

To show your friends how much money you have

Question 23

How do producers and consumers differ?

Accepted Answer

Producers create goods while consumers use or enjoy them.

Answer

Consumers create goods while producers use or enjoy them.

Answer

Producers and consumers are the same thing.

Answer

There's no difference between producers and consumers.

Question 24

When the price of a product goes up, what usually happens to demand?

Accepted Answer

Demand decreases.

Answer

Demand stays the same.

Answer

Demand increases.

Answer

It is impossible to predict.

Question 25

Which type of economy provides the most control over the economy to the government?

Accepted Answer

Communism

Answer

Capitalism

Answer

Socialism

Answer

Mixed economy

Question 26

What is the primary goal of a business?

Accepted Answer

To earn a profit

Answer

To help others

Answer

To protect the environment

Answer

To create new items

Question 27

What's the main difference between a need and a want?

Accepted Answer

A need is essential for survival, while a want isn't.

Answer

A want is essential for survival, while a need isn't.

Answer

They are the same thing.

Answer

There's no difference at all.

Question 28

What is the main goal of consumers?

Accepted Answer

Getting the highest satisfaction

Answer

Spending as little as possible

Answer

Supporting local businesses

Answer

Helping the economy grow

Question 29

What typically happens to the price of a product when there is more demand for it than there is supply?

Accepted Answer

It increases

Answer

It decreases

Answer

It stays the same

Answer

It becomes negative

Question 30

What is the main role of producers in an economy?

Accepted Answer

To create goods and services

Answer

To consume goods and services

Answer

To regulate the economy

Answer

To distribute goods and services

Question 31

Which of these is a characteristic of a market economy?

Accepted Answer

Individuals and businesses make economic decisions

Answer

Government controls most economic decisions

Answer

All goods and services are owned by the government

Answer

There is no competition between businesses

Question 32

What is the main purpose of taxes?

Accepted Answer

To fund government programs

Answer

To punish businesses

Answer

To increase economic growth

Answer

To control inflation

Question 33

What is the difference between a need and a want?

Accepted Answer

A need is something that is essential for our survival, while a want is something that is not

Answer

A need is something we can live without, while a want is something we cannot live without

Answer

A need is something that we can afford, while a want is something that we cannot afford

Answer

A need is something that we desire, while a want is something that we need

Question 34

What is the law of diminishing marginal utility?

Accepted Answer

The more of a good or service we consume, the less satisfaction we get from it

Answer

The more of a good or service we consume, the more satisfaction we get from it

Answer

The less of a good or service we consume, the more satisfaction we get from it

Answer

The less of a good or service we consume, the less satisfaction we get from it

Question 35

What is the purpose of a budget?

Accepted Answer

To keep track of how much money we earn and spend

Answer

To save money

Answer

To invest money

Answer

To get out of debt

Question 36

What is something you can buy in a store?

Accepted Answer

A car

Answer

A service

Answer

An idea

Answer

A feeling

Question 37

When there are more toys than children want to buy, what will happen to the price of the toys?

Accepted Answer

Decrease

Answer

Increase

Answer

Stay the same

Answer

Fluctuate

Question 38

Which of these is NOT a way to make more things?

Accepted Answer

Make products worse

Answer

Buy new machines

Answer

Hire more people

Answer

Work smarter

Question 39

What is something you must have to survive?

Accepted Answer

Water

Answer

A toy

Answer

A house

Answer

A car

Question 40

When a factory dumps harmful chemicals into a river, what is this an example of?

Accepted Answer

A negative effect on the environment

Answer

A positive effect on the environment

Answer

A government program to help businesses

Answer

A market that works perfectly

Question 41

In our country, who decides what items (like toys, clothes, and food) will be produced?

Accepted Answer

People who purchase items (like you and your family)

Answer

The President

Answer

People who manufacture items (like factory workers)

Answer

Banks

Question 42

How does the financial system help businesses expand and the economy grow?

Accepted Answer

It allows businesses to borrow money for investments.

Answer

It helps people save money for the future.

Answer

It protects money from losing value over time.

Answer

It makes it easier for people to buy homes.

Question 43

What information do economic indicators provide about the economy?

Accepted Answer

Prices of goods and services, and income levels

Answer

Public opinion about the economy

Answer

Weather conditions

Question 44

Which economic system allows individuals the greatest freedom to make their own choices?

Accepted Answer

Market economy: Individuals have the freedom to make their own economic decisions, including what to buy, sell, and produce.

Answer

Traditional economy: Jobs and roles are assigned based on family or social status, limiting individual choice.

Answer

Command economy: The government controls economic decisions, restricting consumer and business choices.

Answer

Mixed economy: While the government has some influence, individuals still retain significant economic freedom.

Question 45

Which of these things do people usually want but don't really need to have?

Accepted Answer

Smartphones

Answer

Food

Answer

Clothing

Answer

Water

Question 46

What usually happens to a product's price when there is more of it than people want?

Accepted Answer

The price goes down

Answer

The price goes up

Answer

The supply goes up

Answer

The demand goes down

Question 47

What is the government's main job when it comes to the economy?

Accepted Answer

To help out with important things and make sure businesses follow the rules

Answer

To control the economy completely

Answer

To stop companies from competing

Answer

To own all the businesses

Question 48

Which of these is NOT something that the government does in a command economy?

Accepted Answer

Lets businesses own themselves

Answer

Controls what and how much gets made

Answer

Sets the prices for things

Answer

Makes all the decisions about the economy

Question 49

What is the main difference between a good and a service?

Accepted Answer

Goods are things you can touch, while services are things you can't touch.

Answer

Services usually cost more than goods.

Answer

Goods are always important, while services aren't.

Answer

There is no difference between goods and services.

Question 50

What do we call the money used in the United States?

Accepted Answer

Dollar

Answer

Euro

Answer

Pound

Answer

Yen

Question 51

What is the difference between a producer and a consumer?

Accepted Answer

Producers make things, while consumers buy them.

Answer

Consumers make things, while producers buy them.

Answer

Producers and consumers do the same thing.

Answer

There is no difference between producers and consumers.

Question 52

What do we call things that you can touch, like a toy or a book?

Accepted Answer

Goods

Answer

Services

Answer

Emotions

Answer

Experiences

Question 53

When there are lots of toys available in a store, but not many people want to buy them, what usually happens to the price of the toys?

Accepted Answer

The price goes down.

Answer

The price goes up.

Answer

The price stays the same.

Answer

The toys disappear.

Question 54

Which of these is something that we find in nature, like trees or water?

Accepted Answer

Oil

Answer

Money

Answer

A computer

Answer

A song

Question 55

Which of these lets you choose what you buy and sell?

Accepted Answer

A market economy

Answer

A command economy

Answer

A mixed economy

Answer

A traditional economy

Question 56

What do we use to keep track of our money coming in and going out?

Accepted Answer

A budget

Answer

A wish list

Answer

A savings account

Answer

A piggy bank

Question 57

Who makes things that we use, like toys or clothes?

Accepted Answer

Producers

Answer

Consumers

Answer

Parents

Answer

Teachers

Question 58

How does technology help improve the economy?

Accepted Answer

It creates new and better products for people to buy and use.

Accepted Answer

It helps businesses produce goods at a lower cost.

Accepted Answer

It helps businesses produce more goods.

Answer

It does not contribute to economic growth.

Question 59

What is the meaning of opportunity cost?

Accepted Answer

The thing you don't get when you choose something else

Answer

The cost of buying something

Answer

The money earned from selling something

Question 60

When there is a lot of a product available, what usually happens to the price?

Accepted Answer

It decreases

Answer

It increases

Answer

It stays the same

Question 61

What is an example of a good?

Accepted Answer

A book

Answer

A service

Answer

A feeling

Question 62

When people buy more of a product than is available, what happens to the price?

Accepted Answer

It increases

Answer

It decreases

Answer

It stays the same

Question 63

Which of the following is NOT a factor that can affect supply?

Accepted Answer

Luck

Answer

Weather

Answer

Technology

Question 64

When people want more of a product than is available, what happens to the price?

Accepted Answer

It increases

Answer

It decreases

Answer

It stays the same