Supply and Demand
True or False: Demand is the amount of goods avaliable.
False.
What is another word for barter?
Trade.
A chef preparing a meal at a restaurant. Is this a producer or a consumer? _______________
Producer.
Which item below is considered a need:
Water
Coffee
Pop
Gatorade
Water
True or False: Opportunity Cost is giving up the choice of one thing for another.
True.
According to the law of Supply and Demand, if the price of calculators decreased, the supply of calculators would:
My friend wants my new pencil so I will ________ him it for his eraser.
Barter.
You get your groceries at Food City. Are you a producer or consumer?
You work at Food City and bag groceries. Are you a producer or consumer?
Consumer.
Producer.
Your dad pays a man to wash his car. Is this a good or a service?
Service
You get to decide where your family goes for dinner tonight. You get to choose between pizza, hamburgers, and seafood. You pick hamburgers. What is the opportunity cost?
Pizza and Seafood.
True or False: If there is low supply of turkeys in the store during the month of November, there is also a low demand.
False.
Which is an example of barter?
A. A gift of tuition money from parents to their children.
B. A person buys clothes at a used clothing store.
C. A person trades a desk for a box of tools.
C. A person trades a desk for a box of tools.
When a person provides a good or service to someone else, they are considered a _______. When a person uses the goods or services that are produced, they are considered a _______.
Producer; Consumer
An example of a _____ resource is a lawn mower to provide a landscaping business to the community.
Sarah is deciding whether to watch a comedy or an action movie. She would prefer to watch a comedy. But she also wants to watch a movie with her sister. Sarah's sister will only watch an action movie.
Suppose Sarah decides to watch an action movie. Which result would be a cost?
A. Sarah will get to watch a movie with her sister.
B. Sarah will give up the chance to watch the movie that she is more excited about.
The Law of Demand states that when prices are relative high, ____________.
a. people are more likely to purchase goods or services.
b. demand is relatively high.
c. it is nearly impossible for companies to make money.
d. demand is relatively low.
d. demand is relatively low.
If I am trading some wheat for bread, what am I doing?
Bartering.
Work done by others is a _______.
Service
A mailman delivering your mail every day is providing a _________. Good or service?
Service.
Karen is deciding whether to take a trip to New Hampshire or Indiana. She wants to enjoy her trip. But she is also trying to save money. Suppose Karen decides to take a trip to Indiana. Which result would be a benefit?
A. Karen will give up the chance to go to New Hampshire. She would have enjoyed a trip to New Hampshire more than Indiana.
B. Karen will save some money. Plane tickets for Karen to get to Indiana are less expensive than tickets to New Hampshire.
B. Karen will save some money. Plane tickets for Karen to get to Indiana are less expensive than tickets to New Hampshire.
Which of the following events would cause demand to decrease?
Consumers leave the market.
Consumers expect good things to happen in the future.
Product is a fad.
Suppliers enter the market.
Consumers leave the market.
Is it easier to pay for goods and services with money or to barter?
Money.
Which of these statements describes a producer?
The two girls shopping at the mall.
Candy made scarves out of the yarn.
Janet's mom bought her a winter coat.
Micky ate the cotton candy.
Candy made scarves out of the yarn.
Your mother goes to the nail salon for a manicure. Is this a good or a service, or both?
Both. A manicure is a good. The nail technician is providing a service to your mother.
A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can’t make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?
Muffins.