1. Social Studies Unit 5 Test 1

2. If many people want a good, then the good has a ________________
High supply
High demand
Low supply
Low demand

3. Why don’t they sell worm flavored ice cream in the United States?
There is a high supply for it
There is no demand for it
It would cost too much
There is a high demand for it

4. Long ago people used to barter to get what they needed
Long ago people used to barter to get what they needed. One person might exchange cabbage for a neighbor’s sheep. Using money makes it easier to get what you need because you
Don’t need to find someone who needs what you have and who has what you want
Can always have enough of what you need
Do not have to work for a living
Didn’t have to travel to find what you want

5. Which of the following is NOT a capital resource?
buildings
money
Computers
water

6. You go to the store and buy some Takis. What are you?
A good
A producer
A consumer
A profit

7. Your parents help you out with your online shoe business by buying you a new computer. Which productive resource are your parents supplying?
Labor
Supply and demand
Natural resource
Capital resource

8. ? Services Which of the following completes the chart? Buying food
Attending school
Visiting friends
Lawn Mowing
Services
House cleaning ?
Babysitting

9. Which of the following is a labor resource needed to produce bread?
The soil
The baker
The oven
The wheat

10. Which of the following is an example of a non-renewable natural resource?
Oil
Cows
Wheat
trees

11. Which of the following is NOT a major good produced in Louisiana?
Sugarcane
Soybeans
Sweet potatoes
Maple syrup

12. Which of following is an example of an opportunity cost?
the price of a new video game goes up because there is not a large supply
You make too many cupcakes so you have to lower the price you sell them for
You decide to use a building to open a candy store instead of a shoe store
The demand of a book goes down because the next book in the series has come out

13. Sabrina has chosen a new iphone 6 that she wants to buy, but she cannot afford it. Her friend, Jacob, tells her to wait because a new version of the phone (Iphone 7) she likes will come out at the end of the year. The new version will run faster and have more storage space than the one Sabrina likes. Jacob says that by then, the Iphone 6 Sabrina wants will be a lot less expensive. Why does the price drop for the iphone 6 Sabrina wants?
New, more advanced phones become available, and it shrinks the demand for the old phones
Demand for these phones grows because businesses find new ways to use them
Stores do not have enough supply of the phones
Phone makers have a hard time making the phones

14. ? Shoes Toys Goods Which of the following completes the chart?
Restaurants
Schools
Stores
Potatoes
Goods
Shoes
Toys ?

15. Why is it important to have a budget?
So you can make sure you have enough money to pay for everything you need
To decrease your inventory
To raise the demand for your product
A budget allows you to buy whatever you want

16. How does a credit card work?
You make a promise that you will come back to the store and pay
You get all items at a lower sale price
You can buy an item now and pay later
You have to pay for half of the item in cash

17. Use the story to answer the next two questions:
In the 1990’s a new toy, the Furby, became very popular. Almost every child, boy or girl, wanted one. When consumers heard that a store received a shipment of these Furbies, many would camp out overnight in front of the store to be one of the first to get one. Often times the store would run out of Furbies within thirty minutes. Days would go by before other stores would get a shipment. These Furbies were like gold, and people would have fist fights in the middle of the store to get one. They could not make the Furbies fast enough for everyone who wanted one to get one.

18. The story you just read is an example of:
Labor
Scarcity
Supply
Bartering

19. A mother wanted a Furby so badly for her daughter that she worked an extra job to save $ so she could buy one from her neighbor. She gave up her time to make more money to buy something her daughter wanted. This is an example of:
A producer
A productive resource
Capital
A trade-off