Economy Quiz

What are consumers?

• people who like to eat a lot

• people who buy goods and services

• cats and dogs

• goods and services

What are producers?

• People who provide goods or supply a service

• people who cut hair

• people who make money

• parents

What are two ways companies get consumers to want to buy things?

• singing a song

• using advertisements

• cartoons and catchy songs

• tv shows

What are two examples of goods and services?

• buying snacks at lunch time

• swimming in the pool

• reading a book with a friend

• going to the salon or barber to get a hair cut or style

What is a budget?

• saving money

• paying for your expenses

• looking at your income

• a plan of how to manage your money

What is income?

• amount of money coming in

• amount of money going out

• coming into the house

• paying bills

What are expenses

• food and candy

• amount of money going out

• savings

• junk foog

Why is competition important?

• because you are running in a track meet

• to place advertisements in the newspaper

• several producers offering the same product and consumers are able to get better prices

• for a business

How does supply and demand affect the economy?(check all that apply)

• when supply is high for a product, prices are usually low

• when supply is low for a product, prices are usually high

• producers can charge what they want

• as supply and demand changes, so does the price consumers are asked to pay, allowing more money in consumers wallets

What is a market economy?(check all that apply)

• The United States is a market economy

• producers and consumers

• where buying and selling takes place

• producers are free to decide what to produce, and consumers are free to buy whatever they need and want