Households
This is what households do when they buy food, clothes, or games.
What is consume goods and services?
The main job of businesses in the economy is to do this with goods and services
What is produce or provide?
People keep money safe and earn a little extra by putting it here.
What is a savings account?
The three main parts of a personal budget are income, expenditures, and this.
What is saving
A family saves part of their money in a bank so they can buy school supplies later. Which two sectors are involved?
What are households and banks?
Households provide these to businesses so goods and services can be made.
What are resources or labor?
Businesses pay households for this when they hire people
What is wages or income?
A bank service that helps people pay bills by writing checks or using a debit card is called a what?
What is a checking account
This type of expense is the same each month
What is a fixed expense
A business hires people to make toys, and those workers use their pay to buy the toys. Which two sectors are involved?
What are businesses and households?
Name one type of resource a household can provide besides labor.
What is
Capital
Natural Resources
Entrepreneurship?
A business owner who starts a new company and takes a chance to make a product is called a what?
What is an entrepreneur?
When you borrow money from a bank to buy something now and pay it back later, that is called a what?
What is a loan?
This type of expense changes each month
What is a variable expense?
The government builds a playground near a bakery. More people come, and the bakery sells more bread. Which two sectors helped the bakery sell more?
What are government and businesses?
When a household decides how to spend money, they are making a choice because resources are limited. This idea is called what
What is a budget?
When many businesses try to sell similar products, this helps keep prices fair and gives consumers choices.
What is competition?
Banks charge this on loans — it is the extra money paid back because you borrowed.
What is interest?
Why is it important to save money instead of spending all income?
What is to pay for emergencies, future needs, or big goals?
A person borrows money from a bank to start a lemonade stand, and the government requires a simple permit so the stand is safe. Which three sectors are involved?
What are households, banks, and government?
Explain how a household both supplies resources and demands goods — give one clear example.
What is a household sells labor to a business (supply) and uses income to buy groceries (demand)?
Describe one way entrepreneurs help the economy.
What is they create new goods/services and jobs by taking risks?
Explain one difference between a checking account and a savings account.
What is checking is for everyday payments and withdrawals; savings is for storing money and earning interest?
Explain how not having a budget could make it hard for a person to "make ends meet."
What is without tracking income and expenses they might overspend, run out of money for bills, and be unable to adjust to changing costs?
An entrepreneur borrows from a bank, hires workers, and pays taxes to the government. How do all four sectors (households, businesses, banks, government) connect in this example? Give one short sentence.
What is: A business (entrepreneur) borrows from a bank, hires households to work (paying wages), and pays taxes to the government?