The American Economy: A Guide for Third Graders

Question 1

What is a natural resource?

Accepted Answer

Something that comes from nature and is used by people

Answer

Something that is made by people

Answer

Something that is used to make other things

Answer

Something that is bought and sold

Question 2

What is the name of the system where different people do different jobs and trade with each other?

Accepted Answer

Division of labor

Answer

Market economy

Answer

Capitalism

Answer

Socialism

Question 3

Which branch of government makes the laws?

Accepted Answer

The Congress

Answer

The President

Answer

The Supreme Court

Answer

The FBI

Question 4

What is the term for a time when the economy is doing well?

Accepted Answer

Expansion

Answer

Recession

Answer

Depression

Answer

Inflation

Question 5

Which of these is NOT a feature of a market economy?

Accepted Answer

The government sets the prices of goods and services

Answer

People can own their own businesses and property

Answer

Customers can choose what they want to buy

Answer

Businesses compete with each other

Question 6

What is the most important thing that affects how much something costs?

Accepted Answer

How much of the item there is and how many people want it

Answer

How much it costs to make the item

Answer

What the government says it should cost

Answer

What people want the item to cost

Question 7

Who is known as the 'Father of Economics'?

Accepted Answer

Adam Smith

Answer

Thomas Jefferson

Answer

Benjamin Franklin

Answer

John Locke

Question 8

Which of the following is a very large industry that provides many jobs in the United States?

Accepted Answer

Providing services like teaching and healthcare

Answer

Farming

Answer

Making things like cars and computers

Answer

Helping people travel

Question 9

What is the most important goal of the government when it makes decisions about money and spending?

Accepted Answer

To control how fast the economy is growing or shrinking

Answer

To make sure there are enough jobs for people

Answer

To keep prices from going up too quickly

Answer

To help the economy get better when it is struggling

Question 10

In the American economy, who are usually the main owners of businesses and property?

Accepted Answer

Private individuals or companies

Answer

The government

Answer

Banks

Answer

Foreign investors

Question 11

What is the Federal Reserve best known for doing in the American economy?

Accepted Answer

Setting interest rates

Answer

Regulating banks

Answer

Printing money

Answer

Collecting taxes

Question 12

What is the main reason people make a budget?

Accepted Answer

To plan how they will spend and save money

Answer

To keep track of their spending

Answer

To get a loan from the bank

Answer

To pay their taxes

Question 13

What is the main difference between a need and a want?

Accepted Answer

Needs are essential for our survival, while wants are not.

Answer

Wants are more important than needs.

Answer

Needs and wants are the same thing.

Answer

There is no difference between needs and wants.

Question 14

Who has a job that helps people stay healthy?

Accepted Answer

Doctor

Answer

Teacher

Answer

Police officer

Question 15

Which of these is a primary industry in the United States of America?

Accepted Answer

Agriculture

Answer

Tourism

Answer

Manufacturing

Answer

Healthcare

Question 16

Which of the following is an example of a renewable resource in the United States of America?

Accepted Answer

Wind

Answer

Coal

Answer

Oil

Answer

Natural gas

Question 17

What is the primary purpose of taxation in the United States of America?

Accepted Answer

To raise money for the government to spend

Answer

To control businesses

Answer

To reduce poverty

Answer

To pay for education

Question 18

Which of these is a feature of a free market economy?

Accepted Answer

Competition between businesses

Answer

Government control of prices

Answer

Limited consumer choice

Answer

High levels of regulation

Question 19

What is the economic system where the government has control over all aspects of the economy called?

Accepted Answer

Communism

Answer

Capitalism

Answer

Socialism

Answer

Democracy

Question 20

Which of these countries has an economy that is most similar to the United States?

Accepted Answer

Canada

Answer

China

Answer

Russia

Answer

Japan

Question 21

What is the main currency used in the United States?

Accepted Answer

Dollar

Answer

Euro

Answer

Yen

Answer

Pound

Question 22

Which one of these is a business?

Accepted Answer

Grocery store

Answer

School

Answer

Hospital

Answer

Library

Question 23

What happens in a balanced budget?

Accepted Answer

The government spends and earns the same amount

Answer

The government spends more than it earns

Answer

The government earns more than it spends

Answer

The government borrows money from other countries

Question 24

How does economic inequality impact the American economy?

Accepted Answer

It can lead to social unrest and political instability.

Accepted Answer

It can reduce consumer spending and economic growth.

Answer

It can increase economic efficiency.

Answer

It has no significant impact on the economy.

Question 25

What is a key principle that helps the American economy thrive?

Accepted Answer

Businesses competing to create better products

Answer

The government controlling all major decisions

Answer

Everyone sharing all resources equally

Answer

A single person or family holding all the power

Question 26

What are the things that we use to make goods and services called?

Accepted Answer

Factors of production

Answer

Products

Answer

Resources

Answer

Supplies

Question 27

In which type of economy does the government not get involved much?

Accepted Answer

Market economy

Answer

Traditional economy

Answer

Command economy

Answer

Mixed economy

Question 28

Which part of our government makes the laws?

Accepted Answer

Legislative

Answer

Executive

Answer

Judicial

Answer

Cabinet

Question 29

Which of these is NOT a feature of the American economy?

Accepted Answer

Planned economy system

Answer

Free market principles

Answer

Government regulations

Answer

Competition among businesses

Question 30

What is the key difference between a need and a want?

Accepted Answer

Needs are essential, while wants are not.

Answer

Needs are unlimited, while wants are limited.

Answer

Wants are more important than needs.

Answer

There is no difference between a need and a want.

Question 31

What is the name of the group in charge of making sure the stock market follows the rules?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

Federal Reserve

Answer

Department of Treasury

Answer

Federal Deposit Insurance Corporation (FDIC)

Question 32

What do we call the gap between how much something costs to make and how much it is sold for?

Accepted Answer

Profit

Answer

Revenue

Answer

Loss

Answer

Margin

Question 33

When there is a recession, what happens to the number of people out of work?

Accepted Answer

It goes up

Answer

It goes down

Answer

It stays the same

Answer

It becomes unpredictable

Question 34

What is the name of the law that makes sure companies pay their workers a fair amount of money?

Accepted Answer

Fair Labor Standards Act

Answer

Social Security Act

Answer

Medicare Act

Answer

Affordable Care Act

Question 35

Which of these is NOT a good thing about trading with other countries?

Accepted Answer

We have to depend on them

Answer

Things cost less

Answer

There are more jobs

Answer

We have more choices

Question 36

Which of these is NOT a factor of production?

Accepted Answer

Money

Answer

Land

Answer

Labor

Answer

Capital

Question 37

What is the main purpose of the Federal Reserve?

Accepted Answer

To control the money supply

Answer

To print money

Answer

To collect taxes

Answer

To regulate businesses

Question 38

What is the difference between a good and a service?

Accepted Answer

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

Answer

Services are things you can touch, while goods are things you can't

Answer

Goods are made in factories, while services are performed by people

Answer

Services are made in factories, while goods are performed by people

Question 39

What is the role of consumers in the economy?

Accepted Answer

To buy goods and services

Answer

To produce goods and services

Answer

To regulate the economy

Answer

To invest in businesses

Question 40

What is the difference between a budget deficit and a budget surplus?

Accepted Answer

A budget deficit occurs when the government spends more than it takes in, while a budget surplus occurs when the government takes in more than it spends

Answer

A budget deficit occurs when the government takes in more than it spends, while a budget surplus occurs when the government spends more than it takes in

Answer

A budget deficit is always bad, while a budget surplus is always good

Answer

A budget surplus is always bad, while a budget deficit is always good

Question 41

In a market economy, who makes most of the economic choices?

Accepted Answer

Consumers and businesses

Answer

The government

Answer

Banks

Answer

Nonprofit organizations

Question 42

Which type of business is owned by a single person?

Accepted Answer

Sole proprietorship

Answer

Partnership

Answer

Corporation

Answer

Nonprofit organization

Question 43

What is something you have to have, like food or shelter?

Accepted Answer

A need

Answer

A want

Answer

A luxury

Answer

An expense

Question 44

What do we call the total value of all the goods and services a country makes in a year?

Accepted Answer

Gross Domestic Product (GDP)

Answer

Consumer Price Index (CPI)

Answer

Unemployment Rate

Answer

Federal Budget

Question 45

In the United States, which industry employs a large number of people and contributes significantly to the economy?

Accepted Answer

Manufacturing

Answer

Agriculture

Answer

Education

Answer

Tourism

Question 46

Which of the following best describes the economic system in which individuals and businesses make most economic decisions?

Accepted Answer

Capitalist

Answer

Socialist

Answer

Communist

Answer

Mixed

Question 47

What is the name of the official money used in the United States?

Accepted Answer

US Dollar

Answer

Euro

Answer

Yen

Answer

Pound

Question 48

Which organization is responsible for setting interest rates in the United States?

Accepted Answer

Federal Reserve

Answer

Department of Treasury

Answer

International Monetary Fund

Answer

World Bank

Question 49

Which of these is a naturally occurring resource used to create products?

Accepted Answer

Oil

Answer

Car

Answer

Factory

Answer

Computer

Question 50

What is the primary purpose of the Securities and Exchange Commission (SEC)?

Accepted Answer

Protects investors in the stock market

Answer

Sets environmental regulations

Answer

Regulates the banking system

Answer

Controls government spending

Question 51

Which of the following is a concern or challenge faced by the US economy?

Accepted Answer

Rising income gap

Answer

Perfect weather conditions

Answer

Unlimited natural resources

Question 52

What is the name of the largest stock exchange in the United States?

Accepted Answer

New York Stock Exchange (NYSE)

Answer

Tokyo Stock Exchange

Answer

Shanghai Stock Exchange

Answer

London Stock Exchange