Lesson 99 - Economics Part 2 - 2-19

Question 1

Earn

Answer 1

to get something, such as money, from working

Question 2

producer

Answer 2

a person or group who makes/sells products

Question 3

consumer

Answer 3

a person or group who uses/buys products

Question 4

economic choice

Answer 4

a decision to buy one thing instead of another

Question 5

opportunity cost

Answer 5

what you will give us when you choose one thing instead of another

Question 6

supply

Answer 6

the amount of a product that producers want to sell

Question 7

demand

Answer 7

the amount of a good or service that people want and can pay for

Question 8

profit

Answer 8

the money a business has left over after all its costs are paid

Question 9

needs

Answer 9

things people must have in order to live (examples - housing, clothing, food, and water)

Question 10

wants

Answer 10

things people would enjoy but can live without (examples - toys, games, t. v.)

Question 11

scarcity

Answer 11

things that they have very little of; hard to find things (examples - jobs, seafood, popular toys/games)

Question 12

abundance

Answer 12

things that they have more than enough of; easy to find things (examples - clothing, food, cars)

Question 13

Why do people save money?

Answer 13

People save money to be prepared for when things break, to buy expensive items they want, or to have if they would lose their jobs

Question 14

How do producer depend on consumers?

Answer 14

Producers need consumer to buy their products so that they can make money.

Question 15

How do consumers depend on producers?

Answer 15

Consumers need producers to make the producers so that they can buy the products that the producers sell.

Question 16

How do supply and demand work together?

Answer 16

When products are in high demand, there is a small supply. This is because everyone wants the products so it sells quickly.
When products are not in demand, the supply is large. This is because not many people want the product, so there are plenty left over.

Question 17

What do banks do?

Answer 17

Banks allow people to save their money and they lend money to people.

Question 18

What happens when stores put items on sale?

Answer 18

More people buy items when they are on sale, so the store sells more items and ends up making more money.

Question 19

If you decide to buy one item rather than another, what are you doing?

Answer 19

You are making an economic choice.

Question 20

When 2 stores are selling the same item, how does one store get you to come to their store rather than going to the other?

Answer 20

The store that really wants you to buy the item is going to sell the item for less than the other store so that you will go buy it from them since it is cheaper.

Question 21

What happens to the prices of goods when the demand for the good increases or decreases?

Answer 21

When goods are in high demand, their price goes up?

When goods are in low demand, their price goes down.