Basic Economic Concepts Quiz

What are goods?

• Things people do for others

• Items people buy or use

• A kind of money

• A way to save

What are services?

• Toys and clothes you can buy

• Jobs people do to help others

• Places where money is stored

• Rules about money

What is a budget?

• A plan for how to earn, spend, and save money

• A list of toys you want

• A store where people shop

• A job that pays money

Which is an example of a need?

• Video games

• Sneakers for school

• Trading cards

• Candy

Which is an example of a want?

• Food

• Medicine

• Water

• A new skateboard

A credit card does NOT charge interest, while a debit card does charge interest.

• True

• False

Which is an example of a service?

• A book

• A haircut

• A sandwich

• A backpack

Why do people pay taxes?

• To earn more money

• To pay for public goods and services like schools and roads

• To save money for themselves

• To invest in businesses

What does it mean to save money?

•  To spend money quickly

• To put money aside to use later

• To give money to others

• To borrow money from a bank

 What does it mean to invest?

• To hide money in a safe place

• To use money to try to make more money in the future

• To spend money on things you want

• To ask for money from others