So Many Wants, So Few Resources
You have $10. You can buy a pizza or go to the movies, but not both. The movie is your ____.
What is your opportunity cost?
A new video game sells out everywhere. People are willing to pay more online. This shows how _______ ____________ the price.
What is demand raising the price?
In a small village, people hunt, farm, and trade the same way their ancestors did. What type of economy is this?
What is traditional economy?
A restaurant buys ovens, pans, and mixers to bake bread. These are examples of ____.
What are capital resources?
A family buys groceries at the store. In this example, the family is the ____.
Who are consumers?
The school can only afford either new sports equipment or new computers this year. It can't afford both. This is an example of ____.
What is choice?
If gas prices rise, people drive less. This is an example of how demand changes when this happens.
What is price increases?
In North Korea, the government decides what will be produced and how much it will cost. What type of economy is this?
What is a command economy?
A person starts a food truck and risks their own money to run it. What are they acting as?
What is an entrepreneur?
A factory makes bicycles and sells them to stores. The factory is the ____.
Who are producers?
A farmer only has enough land for corn or wheat. If she plants corn, what is her opportunity cost?
What is the wheat?
A new sneaker release has fans lining up outside stores. The company notices and decides to ship twice as many sneakers next month.What are they doing?
What is increasing supply?
In the United States, businesses decide what to produce, but the government sets some rules. What type of economy is this?
What is a mixed economy?
A town has many workers and plenty of land, but very few machines or tools. Which factor of production is scarce?
What are capital resources?
When gas prices rise, people buy fewer gas-guzzling trucks. Car companies respond by making more hybrids. What is this an example of?
What is supply and demand?
Your town has to decide between fixing roads or building a new library. This is caused by a ___________ of _______________.
What is a scarcity of money?
When a storm destroys Florida’s orange crops, orange juice prices rise. Why?
What is decreased supply raises prices?
In a free market, if no one wants to buy a certain product, what happens to the business that makes it?
What is go out of business?
A bakery needs flour, sugar, and butter, as well as workers and ovens. Which of these are natural resources?
What are flour, sugar and butter?
A local coffee shop sells lattes and muffins. Customers buy drinks to enjoy at the café, while a nearby bakery buys muffins to sell in their own store. In this scenario, who is the consumer, and who is the producer at each step?
What is the coffee shop is the producer, the customers are consumers, and the bakery is both a consumer (buying muffins) and a producer (reselling them)?
A farmer has land to grow either vegetables or corn for biofuel. Vegetables would bring in steady income & feed local families. Biofuel corn could earn more money but depends on fuel prices staying high. Explain the scarcity problem and identify the opportunity cost if the farmer plants vegetables.
What is the scarcity problem is limited farmland (the farmer can’t plant both crops), and the opportunity cost is the potential higher profits from growing biofuel corn?
If the price of hamburgers goes up, more people buy chicken sandwiches instead.Why?
What is people finding another choice if the price is too high?
A country’s government builds highways while private companies sell cell phones. This shows characteristics of what kind of economy?
What is a mixed economy?
A farmer owns land, hires workers, buys tractors, and decides to raise sheep instead of cows. What are the different types of resources for this situation.
What is that the land and animals are natural resources, the workers are human resources, and the tractors are capital resources?
A business needs workers to run machines, and workers need jobs to earn money. What does this show about consumers and producers?
What is that they are reliant on one another?