Economics for Third Graders: Learn about Money and Trade

Question 1

Which of these is something found in nature that we can use?

Accepted Answer

A tree

Answer

A book

Answer

A car

Question 2

What are the four main things needed to produce goods and services?

Accepted Answer

Land, labor, capital goods, and money

Answer

Land, labor, capital goods, and profit

Answer

Land, labor, money, and machinery

Answer

Land, factories, workers, and cars

Question 3

Which country allows people to start their own businesses?

Accepted Answer

Country C, where people can start their own businesses without government ownership

Answer

Country A, where the government owns all businesses

Answer

Country B, where the government only provides essential services like healthcare and education

Question 4

You're at the store with your parents, and you're about to buy a new toy. What type of good is it?

Accepted Answer

Consumer good

Answer

Capital good

Answer

Natural resource

Question 5

When inflation occurs, what happens to the purchasing power of consumers?

Accepted Answer

It goes down.

Answer

It goes up.

Answer

It stays the same.

Answer

It goes up for businesses.

Question 6

When the government sets a price ceiling, what happens to the market?

Accepted Answer

The amount people want to buy (demand) increases, while the amount of the product available (supply) decreases.

Answer

The amount of the product available (supply) increases, while the amount people want to buy (demand) decreases.

Answer

Both the amount of the product available (supply) and the amount people want to buy (demand) increase.

Answer

Neither the amount of the product available (supply) nor the amount people want to buy (demand) changes.

Question 7

How do income, personal preferences, and cultural background influence what people buy?

Accepted Answer

These factors greatly affect consumption because they determine what people can afford, what they like, and what they are used to.

Answer

Only income and personal preferences influence consumption patterns.

Answer

Cultural background is the only factor that determines consumption patterns.

Answer

Income does not affect consumption patterns.

Question 8

How does long-lasting economic growth help people live better lives over time?

Accepted Answer

It creates more jobs, which means higher pay and better living conditions.

Answer

It only helps rich people, not everyday people.

Answer

It doesn't affect people's lives, only businesses.

Question 9

In which economic system do businesses belong to private owners, and the government creates rules to ensure fairness and consumer protection?

Accepted Answer

Market Economy

Answer

Command Economy

Answer

Traditional Economy

Question 10

What is an example of human capital?

Accepted Answer

A person's education

Answer

A factory

Answer

Oil

Answer

Money in a bank

Question 11

When we choose whether to buy something based on its price, which economic concept are we using?

Accepted Answer

Demand

Answer

Scarcity

Answer

Supply

Answer

Trade

Question 12

Imagine there is only one delicious pizza in the world. If many people want to eat it, what does this tell us about how easy it is to get the pizza?

Accepted Answer

It is very hard to get the pizza.

Answer

It is very easy to get the pizza.

Answer

The pizza is not very tasty.

Question 13

How do technological advancements impact production and contribute to economic growth?

Accepted Answer

They make production more efficient, producing more with the same resources.

Accepted Answer

They create new products and services, leading to increased spending and growth.

Answer

They reduce the need for human labor, potentially leading to job losses and inequality.

Answer

They have no impact on economic growth.

Question 14

A new machine is invented that can make cars much faster and at a lower cost. How do you think this invention will affect the supply and demand for cars?

Accepted Answer

Both the supply and demand for cars will increase.

Answer

The supply of cars will increase, but the demand for cars will stay the same.

Answer

The demand for cars will increase, but the supply of cars will stay the same.

Answer

Both the supply and demand for cars will decrease.

Question 15

In a mixed economy, who decides how resources should be used?

Accepted Answer

The government and businesses

Answer

The community

Answer

A single leader

Answer

Chance

Question 16

You have a lemonade stand with 10 cups of lemonade to sell for 50 cents each. If you raise the price to 75 cents each, what will likely happen?

Accepted Answer

You will sell less lemonade.

Answer

You will sell more lemonade.

Answer

You will sell the same amount of lemonade.

Answer

There is not enough information to tell.

Question 17

Which term refers to the total value of all goods and services produced in a country within a year?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Gross National Income (GNI)

Answer

Net National Income (NNI)

Answer

Gross National Happiness (GNH)

Question 18

In a capitalist economy, who owns the businesses and makes the decisions about what to produce?

Accepted Answer

The owners of the businesses

Answer

The government

Answer

The employees of the businesses

Question 19

What do economists use to measure economic growth, which is the increase in a country's production of goods and services over time?

Accepted Answer

Measuring the change in a country's GDP per person

Answer

Counting new businesses started each year

Answer

Measuring the change in the inflation rate

Answer

Measuring the change in the unemployment rate

Question 20

You have $20 to spend. You can either buy a toy car or save the money to buy a bike. If you buy the toy car, what do you miss out on?

Accepted Answer

The bike you could have bought.

Answer

The money you spend on the toy car.

Answer

The time you spend playing with the toy car.

Answer

The fun you could have had playing with the toy car.

Question 21

How can economic principles be used to help people in our community?

Accepted Answer

Support businesses that care about fairness and the environment.

Answer

Avoid buying products from other countries to protect our own businesses.

Answer

Let the government make all economic decisions to ensure fairness.

Answer

Save all our money and never spend it.

Question 22

When something is scarce, what do we have to do?

Accepted Answer

Make choices about how to use it

Answer

Use it as much as we want

Answer

Find more of it

Question 23

Sometimes people make choices about money based on how they feel. What's a word for these kinds of reasons?

Accepted Answer

Emotional

Answer

Governmental

Answer

Market

Question 24

How can international trade and globalization benefit countries' economies?

Accepted Answer

Selling goods and services to other countries earns money to buy needed items.

Accepted Answer

Sharing ideas and technology with other countries teaches new ways to make things.

Accepted Answer

Competing with other countries improves the quality of goods and services.

Question 25

What does it mean when we say an economy is efficient?

Accepted Answer

When all resources are used to make as many goods and services as possible.

Answer

When everyone in a society has the same amount of money.

Answer

When the government controls all the businesses.

Answer

When there are no problems in the economy, like unemployment or inflation.

Question 26

In a mixed economy, who has the most say in what is made and how it is sold?

Accepted Answer

Businesses

Answer

The people

Answer

The government

Question 27

When there's not enough of something but many people want it, what usually happens?

Accepted Answer

The cost increases.

Answer

The cost decreases.

Answer

The government decides the cost.

Question 28

When economists use the circular flow model to explain how the economy works, they assume that:

Accepted Answer

Businesses pay for the resources they use to make goods and services.

Answer

People only buy things they need.

Answer

The government has no role in the economy.

Answer

All economic activity is shown in the circular flow model.

Question 29

What is the difference between a need and a want?

Accepted Answer

A need is something you must have to survive, like food, water, or shelter. A want is something you would like to have, but you can live without it.

Answer

A want is something you must have to survive, like food, water, or shelter. A need is something you would like to have, but you can live without it.

Answer

Needs and wants are the same thing.

Answer

A need is something you want to have, while a want is something you must have to survive.

Question 30

When prices increase, do producers and consumers respond in the same way? Explain your answer.

Accepted Answer

No, they respond differently. Producers typically prefer higher prices, while consumers prefer lower prices.

Answer

Yes, they respond the same way. Both producers and consumers want prices to decrease.

Answer

No, they respond differently. Producers control prices, and consumers must pay them.

Answer

Yes, they respond the same way. Both producers and consumers want prices to increase.

Question 31

How does international trade and globalization contribute to economic growth and development?

Accepted Answer

By encouraging specialization and innovation

Answer

By reducing competition and slowing economic growth

Answer

By increasing the gap between the wealthy and the poor within countries

Question 32

You have $5 to spend. You can buy either a toy car or a book. If you buy the toy car, you won't have enough money to buy the book. What do you give up by choosing the toy car?

Accepted Answer

The book you won't be able to buy

Answer

The fun you would have playing with the toy car

Answer

The money you will spend on the toy car

Answer

The time you will spend playing with the toy car

Question 33

What's the main difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics focuses on specific markets or industries, while macroeconomics looks at the economy as a whole.

Answer

Microeconomics is not just about business, and macroeconomics is not just about people.

Answer

Microeconomics and macroeconomics both use theory and real-world data.

Answer

Macroeconomics is important for all countries, regardless of their wealth.

Question 34

Which subject helps us understand how people make choices about using resources that are not unlimited?

Accepted Answer

Economics

Answer

History

Answer

Geography

Answer

Biology

Question 35

Imagine that many people suddenly want new toys. What will likely happen to the demand for old toys?

Accepted Answer

Demand for old toys will go down.

Answer

Demand for old toys will go up.

Answer

Demand for old toys will not change.

Question 36

How does the government use fiscal policy to influence the economy?

Accepted Answer

By adjusting taxes

Answer

By setting interest rates

Answer

By regulating wages

Answer

By controlling prices

Question 37

In a mixed economic system, who owns the resources?

Accepted Answer

Both individuals and the government

Answer

Only the government

Answer

Only individuals

Question 38

What is a benefit of using Gross Domestic Product (GDP) to measure a country's economic health?

Accepted Answer

GDP counts all goods and services made in a country

Answer

GDP shows how well off all people in a country are

Answer

GDP is simple to calculate

Answer

GDP is not affected by ups and downs in the economy

Question 39

When countries exchange goods they make with each other, what is it called?

Accepted Answer

Trading

Answer

Buying

Answer

Selling

Answer

Sharing

Question 40

How do government rules and laws affect the number and price of products bought and sold in a market?

Accepted Answer

Government involvement can change either the supply or demand curve, affecting the equilibrium price and quantity.

Answer

Government rules have no impact on the market.

Answer

Government laws only cause higher prices and fewer products.

Answer

Government laws only affect the price of goods, not the quantity.

Question 41

How do externalities influence the number of buyers and sellers in a market?

Accepted Answer

Positive externalities increase demand for a product.

Accepted Answer

Negative externalities decrease supply of a product.

Answer

Externalities do not affect the balance of buyers and sellers.

Question 42

Which of these is NOT a characteristic of trustworthy economic data?

Accepted Answer

Bias

Answer

Accuracy

Answer

Timeliness

Answer

Relevance

Question 43

How can businesses help protect the environment and promote economic sustainability?

Accepted Answer

Use renewable energy sources, like solar and wind power

Accepted Answer

Reduce waste and pollution in their factories and offices

Answer

Make products that use a lot of energy and resources

Answer

Ignore environmental regulations to save money

Question 44

What factors can influence how much people want of a product or service?

Accepted Answer

The cost of the item

Accepted Answer

The amount of money people have

Accepted Answer

The availability of similar products or services

Answer

The size of the city where people live

Question 45

What is production and why is it crucial in economics?

Accepted Answer

Creating goods or services that people need or desire

Answer

Exchanging goods or services for money

Answer

Storing money in a financial institution

Answer

Buying and selling stocks or bonds

Question 46

How does the World Bank help countries grow their economies?

Accepted Answer

By giving loans and grants to build schools and hospitals

Answer

By making rules for trading between countries

Answer

By sending soldiers to help countries in need

Answer

By printing money for countries

Question 47

Which characteristic is NOT typically found in traditional economies?

Accepted Answer

Government control of economic activities

Answer

Decisions based on customs and traditions

Answer

Bartering as a means of exchange

Question 48

What is NOT a benefit of starting a corporation compared to a partnership?

Accepted Answer

Easier to start

Answer

Limited liability

Answer

More money available

Answer

Tax advantages

Question 49

What usually happens when people want more of something?

Accepted Answer

Its price goes up.

Answer

Its price goes down.

Answer

Less of it is made.

Answer

Less of it is bought.

Question 50

Which of these lets people own their own businesses?

Accepted Answer

Capitalism

Answer

Communism

Answer

Socialism

Answer

Mixed economy

Question 51

When there aren't enough resources to go around, what do people have to do?

Accepted Answer

Choose what's most important

Answer

Want more than they have

Answer

Make no changes to their choices

Question 52

When people use their savings to buy things, how does it affect businesses?

Accepted Answer

Businesses make more money and can hire more people.

Answer

Businesses need to charge more because their costs go up.

Answer

Businesses close because there isn't enough money in the economy.

Question 53

What happens when the government prints a lot of money?

Accepted Answer

The value of the money decreases.

Answer

The value of the money increases.

Answer

The value of the money remains the same.

Question 54

How do new machines impact the number of jobs available?

Accepted Answer

New machines can eliminate some jobs.

Accepted Answer

New machines can generate new jobs.

Answer

New machines have no effect on jobs.

Question 55

How can new technology affect jobs?

Accepted Answer

Technology can both make and take away jobs.

Answer

Technology can only take away jobs.

Answer

Technology can only make new jobs.

Question 56

In a global economy, businesses have ethical responsibilities. Which of these is NOT an ethical responsibility?

Accepted Answer

Make a profit

Answer

Pay fair wages to workers

Answer

Protect the environment

Answer

Ensure consumer safety

Question 57

What is a possible advantage of international trade agreements?

Accepted Answer

More economic growth

Answer

Fewer jobs

Answer

Less variety of products

Question 58

What could happen if some people have a lot more money than others?

Accepted Answer

More people might be poor.

Accepted Answer

People who are not rich might have fewer chances to succeed.

Accepted Answer

There might be more problems like crime and fighting.

Answer

Everyone might get richer faster.

Question 59

When there are more products available than people want to buy, what happens to the price?

Accepted Answer

It falls

Answer

It stays the same

Answer

It rises

Answer

It becomes negative

Question 60

Which of these is an example of a good, rather than a service?

Accepted Answer

A toy car

Answer

A haircut

Answer

A song

Question 61

What is the main purpose of production in economics?

Accepted Answer

To make goods and services available

Answer

To provide employment

Answer

To make money

Answer

To help people

Question 62

In a capitalist economy, what role does the government play?

Accepted Answer

Regulating the economy, and providing public goods and services

Answer

Owning and controlling all businesses

Answer

Providing all goods and services

Question 63

Which of these is an example of a natural resource?

Accepted Answer

Water

Answer

A book

Answer

A computer

Answer

A car

Question 64

What is the difference between a need and a want?

Accepted Answer

A need is something necessary for survival; a want is something desirable but not essential.

Answer

A need is something you have to do, a want is something you don't have to do.

Answer

A need is something you buy, a want is something you make.