Economic Basics
What is the study of how people use resources to meet their needs and wants?
Economics
If there are a lot of a product available but not many people want to buy it, what will usually happen to the price?
The price will go down.
A person who makes or sells goods and services is called what?
A producer
You have $10. You can either buy a new book or go to the movies with friends. You choose the movie. What was your opportunity cost?
The new book.
What is an entrepreneur?
A person who starts their own business.
When you have to choose one thing over another because of limited resources, it’s called a what?
a) opportunity cost
b) inflation
c) surplus
d) trade-off
Opportunity Cost
When many people want the same product but there is only a little bit of it, what happens to the price?
The price will go up.
A person who buys or uses goods and services is called what?
A consumer
What do we call the money people use today to buy goods and services?
a) dollars
b) currency
c) money
d) bills
Currency.
Entrepreneurs take risks when they start a business. What is one risk they might face?
(Possible answers: losing money, not finding customers, competition)
What is something that you must have to survive, like food, water, and shelter?
A need
What do we call the amount of a product that businesses are willing to make and sell?
a) amount
b) stock
c) supply
d) stuff to be sold
The supply.
Name one example of a service someone could provide.
Answers may vary.
When countries or people depend on each other for goods and services, it’s called what?
a) independence
b) dependable
c) help
d) interdependence
Interdependence
What is something an entrepreneur sells to make money?
A good or service.
What do we call something people would like to have but can live without, like toys or video games?
A want
What do we call how much people want to buy a product?
Demand
What is the name for money people earn from working?
Income.
Name one good Kentucky is famous for producing and trading.
(Possible answers: bourbon, horses, tobacco, coal)
What quality would good entrepreneurs have?
Possible answers: creativity, hard work, responsibility, leadership)
What is the term for when there are not enough resources to meet everyone's wants?
Scarcity
When supply is high and demand is low, what usually happens to the price?
The price decreases.
What happens if a producer makes too many of something and no one wants to buy it?
There is a surplus.
When people and countries buy goods from other countries, it’s called what?
Import or Importing
If you start a lemonade stand, what are you selling: goods, services, or both?
Good