Penelope's Economics Review Lessons 1-5

Front

What does "capital" refer to in economics?

Back

Tools and machines used to produce goods; people's skills and knowledge

Front

If the demand for a product increases but the supply stays the same, what will likely happen to the price?

Back

The price will go up.

Front

When there is too much of a product and not enough buyers, what is this situation called?

Back

Surplus

Front

What is an export?

Back

A product sent to another country for sale

Front

Why do countries trade with one another?

Back

Because no country can produce everything it needs

Front

What are taxes used for?

Back

To pay for public services like schools and roads

Front

Which of the following is an example of saving? Spending money on new shoes, Putting money into a bank account, Borrowing money to buy a car, Paying taxes

Back

Putting money into a bank account

Front

What does "scarcity" mean in economics?

Back

Not having enough resources to meet everyone's needs

Front

How are resources usually distributed in a market economy?

Back

By supply and demand

Front

What is a key feature of a market economy?

Back

People are free to start businesses and set prices.