Demand and supply

Question 1

What is demand?

Answer 1

Demand is how many people want something and are willing to pay different prices for it.

Question 2

What is supply?

Answer 2

Supply is how much of a product or service producers are ready to sell at different prices. Supply is determined by demand.

Question 3

Economy

Answer 3

The economy is like a big system that involves everything people and businesses do to make, buy, and sell goods and services. It’s how a country manages its money and resources.

Question 4

Scarcity

Answer 4

Scarcity means there’s not enough of something to meet everyone’s wants or needs.

Question 5

Producers

Answer 5

Producers are the people or companies who make and sell goods or services.

Question 6

Resources

Answer 6

Resources are the things we use to make goods and provide services, like land, labor, and raw materials.

Question 7

Natural resources

Answer 7

Natural resources are materials that come from the Earth, like water, minerals, and forests, which are used to create products and meet our needs.

Question 8

Human resources

Answer 8

Human resources are the people who work to produce goods and services, using their skills and abilities.

Question 9

Capital resources

Answer 9

Capital resources are things like machines and tools that are used to make other products or provide services.