It really amazes me that you were able to make this in 1 week.
Really solid gameplay loop will take some time to get used to the controls but once comfortable with, it is hella fun. The music is good not overpowering the gameplay just going with it and the sound are really good and on point.
One feedback from me would be having the same key to maybe drop off the items when I am near no active task and yeah like some of the comments a risk reward mechanism and a bit easier way to make swords in the initial levels. maybe iron easiest to make, diamond harder with much more grinding and hammering.
I got reminded of a game called JackSmith (Jacksmith 🔨 Play on CrazyGames). Try that game out, you will get a load of inspiration for further development
Really solid game. Kudos!!