Economics Review

______ have to make CHOICES about what to buy because they don’t have enough money to buy everything they want.  

• Consumers

• Producers

• Opportunity Cost

People get a SALARY by earning an _______ by trading their time and effort for money

Answer explanation

income

Opportunity Cost

• Use of capital goods to create goods & services

• People and countries rely on one another

• When you buy something, you give up the chance to buy something else

• Must have to live.

Each country has its own CURRENCY.

• True

• False

Answer explanation

TRUE

Anything needed to produce goods & service.

• Trade

• Resource

• Scarcity

• Interdependence

Being dependent on other countries or people to produce the things you don’t produce yourself

• Specialization

• Interdependence

• Scarcity

• Resource

Not having enough of something you want

• Specialization

• Interdependence

• Scarcity

• Resource

Anything needed to produce goods & services

• Specialization

• Interdependence

• Scarcity

• Resource

Producer

• Person who makes a good or provides a service

• Person who buys a good or service

• Anything you buy that you can hold/touch (food, clothes, books etc)

• Any activity you pay someone one else to do for you

Consumer

• Person who makes a good or provides a service

• Person who buys a good or service

• Anything you buy that you can hold/touch (food, clothes, books etc)

• Any activity you pay someone one else to do for you