Economic Review

Define Shortage

• more people want an item than is available for purchase

• more items available for sale than people want to purchase

Define Surplus

• more items available for sale than people want to purchase

• more people want an item than is available for purchase

If there is 50 donuts made and 40 people buy them, will there be a shortage or a surplus?

• shortage

• surplus

A snowstorm is coming to town. There are 0 packs of water left but 50 people in line. Will there be a shortage or a surplus?

• shortage

• surplus

Who makes and sells goods?

• Consumers

• Producers

• Goods

• Services

Someone cutting your hair is a

• Good

• Service

Books: Goods or Service?

• Goods
• Service

What is this a picture showing?

• producers selling goods

• producers giving a service

A person who buys goods or services is called a?

• producer

• consumer

• worker

• employee

People can be both a consumer and a producer.

• True

• False