Supply and Demand
What happens to prices when many people want to buy something?
The price would rise.
What are the three basic types of productive resources?
Natural, Human, and Capital resources.
What four characteristics should money have?
Scarce, Portable, Divisible, Durable.
What is the opportunity cost if you buy candy but wanted a book second-most?
The book.
If your family wants to start 3 different Kentucky businesses, what must you do?
Make a CHOICE.
What could lower grocery prices in a town with only one grocery store?
A new grocery store opens.
Jason BOUGHT and USES soybeans and corn. What is he called?
A consumer.
What is money left over after paying production costs?
Profit.
What is the next best thing given up in making a choice?
Opportunity Cost
Sarah traded squash to John for a mower. What is true about the trade?
Both Sarah and John gained.
How are consumers affected when a new Mexican restaurant opens nearby?
Customer service at both stores will improve.
Trees and oil are examples of which resource type?
Natural resources.
What is it called when people trade goods/services?
Barter.
Because wants are unlimited and resources are limited, what must we make?
We MUST make a choice.
FREE POINTS!
FREE POINTS!
What would happen to the American economy/jobs if people only bought goods from other countries?
Many American workers would lose their jobs.
Tools and tractors used to make products are what type of resource?
Capital Resources.
A bike company divides jobs among each worker. What does this accomplish?
Division of Labor.
Jane earns more from babysitting than baking cookies. What will she likely do?
Babysit more, bake less.
What allocation method gives everyone a random chance of being selected? (names drawn from a hat)
Lottery
A farmer sells apples to a bakery, and the bakery sells pies to customers. What does this show?
Interdependence between people and businesses.
A plumber and teacher are examples of what kind of resource?
Human Resource
Why do people/jobs specialize when making a good?
To make more.
Dan chose to live in Ohio over Kentucky. What was the opportunity cost?
Kentucky.
What allocation method gives a scarce item to the people in line first?
First Come, First Serve.