Economy Quiz
credit card
a card that allows its holder to use it for small loans, most banks offer this
interest
a fee for borrowing money also, in exchange for using money, the bank pays you some of the interest
bank account
a place where people put their money to keep it safe and earn interest it also lends their customer's money to businesses and individuals
free enterprise system
also know as capitalism or free market system, where people are free to start their own business or do whatever work they want private people and companies, and both the government, own factories and stores
supply
amount of goos or services that are available
A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can't make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision?
bake muffins
specialize
concentrate in one particular area
why can't I have everything?
limited resources scarcity (not enough) some things are scarcer than others money, time, and goods can all be scarce scarcer resources cost more than abundant resources scarcity forces people to make decisions on what they REALLY want
The local government for a community must decide what to do with the sales tax collected. They could build a new skate park or they could buy more computers for the public library. The officials decide to build a skate park. What is the opportunity cost of their decision?
more computers
consumers
people who buy goods and services
Emelia has been invited to a sleep over at Chloe's house for this Saturday. Emelia has tickets to see her favorite band in concert that same night. She decides to give the tickets to her sister and go to Chloe's house. What is the opportunity cost of her decision?
see her favorite band in concert
demand
the consumers' desire to buy a particular thing service is high
demand is down
the price will decrease because there are few consumers who want to purchase it
supply is up
the price will decrease because there is more than enough on the market
demand is up
the price will increase because there are lots of consumers willing to buy
supply is down
the price will increase because there is not enough to meet consumer demand
competition
the struggle among producers for the money consumers spend
opportunity cost
the thing you have to give up to get the thing you want
scarcity
there is a limit to what we can have, making a choice about how and were to spend money
trade aggrement
these are agreements made by the government that make it easy for businesses to import or export good between countries
import
to bring in
manufacture
to make goods
export
to send out
The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their backyard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision?
vacation
Max is studying for his spelling test. Unfortunately, his favorite TV program is on right now. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision?
watching the show
what is opportunity cost?
when a choice is made, other choices are given up the next best choice given up other goods, services time or experiences value of the next best choice
how do my choices affect others?
when a purchase is made, other people, businesses and government get to have that money spent stores get money(profit) to pay their workers and buy or make more products government gets money(revenue) from taxes to spend on goods and services
