Michigan Economy

Limited resources and unlimited wants create:

• trade

• scarcity

• goods

• money

Which statement is false?

• Michigan trades with many different states and many different countries.

• Michigan only trades with one or two states.

To provide for its services to provide for it's people, Michigan government collects:

(select all that apply)

• goods

• taxes

• fees

• fines

Select the services that the Michigan government provides:

(select all that apply)

• Detroit Tigers team

• State Police

• Target

• state parks

In order to have a strong future, Michigan needs to:

• stop farming and use the farm land for other things.

• just focus on making cars and nothing else.

• make good use of the natural resources it has.

Because people specialize they have to:

• trade to get what they do not make.

• give goods away.

• borrow money to buy goods.

Which is true about farming in Michigan?

• Michigan only grows soybeans, corn, and apples.

• Michigan is cold and there is not much farming.

• Most of the farming is done in the upper peninsula.

• Farming is an important economic activity of Michigan.

Mrs. Diekman went to Target to buy one item for herself. She wanted a new shirt and new shoes. She decided to purchase the shoes. What was Mrs. Diekman's opportunity cost?

• shirt

• shoes

Answer explanation

Remember: opportunity cost is the 2nd choice.

Where do you find the most manufacturing in Michigan?

• The Upper Peninsula

• Flushing

• Big cities

• in the center of the state.

Check all the capital resources:

• trees

• trucks

• workers

• factories

Answer explanation

Remember: capital resources are the tools and items needed to make goods. They are not found in nature and they are not people.