Types of Resources
What kind of resource is a teacher or doctor?
Human Resource
What happens to price when demand goes up but supply stays the same?
Prices tend to go up when demand goes up.
Give one example of a need and one example of a want
Need: water, food, clothing, shelter
Want: new phone, video games, Needohs
Name two ways people use money.
Ex: bills, taxes, food, clothing, "wants"
What is charity? Give one example of a charitable action someone can take
Charity = giving help or money to others in need. Example: donating clothes or volunteering at a food bank
What type of resource is a machine in a factory?
Capital Resource
If there are many copies of the same toy available but few buyers, what would happen to the price of the toy?
The toy price would typically go down since demand is low.
Explain why water is a need and a designer backpack is a want. Give one situation where the backpack might seem more necessary
Water is needed for survival. A designer backpack is not a necessity- but a student may NEED a normal backpack to carry their items.
What is capital?
Money that a business has to better their business (a bakery buying new mixers)
What is a cost-benefit analysis (CBA) in simple terms? Give a short example related to buying a bicycle
CBA = list costs and benefits to decide if something is worth it. Example: Buying a bike — costs: price, maintenance; benefits: exercise, cheaper transport
Name two natural resources and say which one is renewable and which one is nonrenewable.
Renewable/natural: plants, water, air, etc.
Nonrenewable/natural: gas, oil, fossil fuels
Define "supply."
Supply is the amount of an item/product/resource a business or group has.
A family must choose between buying gas for the car or buying concert tickets. Which is the need and which is the want
Need: gas for transportation to school/work
Want: concert tickets
Give an example of capital used to produce something.
Ex: The Apple Company uses capital (money they have earned) to create new technology for a new phone.
Provide an example of capital, human, and natural resources working together to produce a loaf of bread
Human = baker; Capital = oven, mixer; Natural = wheat
Explain the difference between renewable and nonrenewable resources
Renewable: Can be used over and over again and be reproduced over and over again.
Nonrenewable: Once it is used up, it's gone "forever."
Define "demand."
How many people want or are willing to buy an item.
Create a scenario where something that looks like a want could be treated as a need. Explain your reasoning.
Ex: A student walking home alone at night may NEED a cell phone. The student that gets picked up by parents may not NEED a phone.
What is interest? Give an example of earning interest.
Interest is money earned by keeping money in a bank. If you leave money in a savings account, you will earn interest.
Explain opportunity cost and cost-benefit analysis together: show how a CBA could help someone decide between two choices that have different opportunity costs
CBA compares pros/cons including opportunity cost (what you give up). Example: Choose between tutoring (gains study time) or after-school job (earns money); CBA lists benefits/costs including lost free time
A community uses trees for paper, a river for hydroelectric power, and oil for fuel. Classify each as: human, capital, natural
River: natural
Oil: Natural
Give an example of something that could cause supply to decrease and explain how that change affects price and quantity sold.
Ex: Stanley Cups could be considered a "fad." People don't want them as much now than before, so we tend to see Stanley's on sale/at discount stores.
Explain how culture and personal situations can change whether something is a need or a want. Give an example.
If someone lives in New York City, they are able to use the Subway and may not NEED a car. If someone lives in Daisytown, they may NEED a car to get to the store and work.
What is opportunity cost when deciding how to spend money? Give a short example using $20
Opportunity cost = what you give up when you choose one option over another. Example: Spending $20 on snacks means you can't spend it on a book.
Read this short scenario and answer: A small town must decide whether to build a park or a parking lot. The park costs more but brings long-term community health and tourism benefits; the parking lot brings immediate revenue for local businesses. Outline a brief cost-benefit analysis (list 3 costs and 3 benefits for each option) and state which you would recommend and why.
Example CBA (brief): Park costs: construction, maintenance, lost parking revenue; benefits: health, tourism, green space.
Parking lot costs: construction, loss of green space, traffic; benefits: immediate parking revenue, more customers for shops, lower congestion in streets.
Recommendation depends on community goals — e.g., choose park if long-term health/tourism priorities outweigh immediate revenue.