Chapter 8 Economics

Which statement is true?

• All decisions are easy to make

• Decisions only have costs

• All decisions have costs and benefits

• Decisions only have benefits

Why do people save money?

• They can write a check to pay for something

• They like to spend paper bills and coins

• They want to buy something later when they have enough money

• They want to sell things before they buy anything

Answer explanation

When you want to buy something expensive like a switch you have to save lots of money before you can buy it

Which picture shows a consumer?

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Draw a line from the word to the correct definition.

Answer explanation

Cost = giving something up

Benefit = you gain something

People are consumers when they__

• know all their choices

• make goods and services

• save their money to spend later

• buy or use goods and services

Which picture shows a producer?

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Answer explanation

The baker is trying to sell his bread. He is a producer

What happens when people cannot have all the goods and

services they want?

• They make a choice

• They sell their goods

• They find a free service

• They take somebody else's goods

Which two are examples of money?

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When people have a choice to make, what can help them decide?

• Charts of goods and services

• A decision-making model

• The ideas of a consumer

• The ideas of a Producer

Things that people make or use to satisfy wants are called—

• choices

• sellers

• goods

• buyers