Social Studies Chapter 12 - Saving and Spending Money

What can people use credit cards for?

• to order products from the Internet

• to make investments

• to deposit money in the bank

• to trade goods with another person

What is one effect of competition between companies?

• The demand for goods stays the same.

• The quality of the goods gets worse.

• Producers earn more money.

• Prices stay low enough to attract consumers.

Which of the following sentences uses the word demand correctly?

• When many consumers want a good, a demand is created for it.

• A person can create a demand as a a plan for saving.

• Families use their demand to buy everyday things.

• Services are known as a demand.

A company produces a comic book that becomes very popular. Many people want to buy it.

What will the company probably do next?

• lower the price of the comic book

• give the comic book away

• make more comic books

• start selling a new comic book

What usually happens when a product becomes scarce?

• Demand for the product goes down.

• The product's price goes up.

• Its producers lose money.

• Its supply goes up.

What is one reason that people put their savings in a bank?

• to lend money to the bank

• to learn how to spend their money wisely

• to keep their money safe and make extra money from the interest

• to share money with other people in the community

Which of the following is one way a person can invest his or her money?

• buying a small part of another person's business

• purchasing a service

• ordering goods over the Internet

• depositing money in the bank

Business A makes computers.

Business B provides computer parts.

Business C ships the finished computers.

Business D sells the finished computers.

What to businesses A, B, C, and D have in common?

• They sell a good or a service.

• The accept only credit cards.

• They provide interest on a person's savings.

• They sell camping equipment.

Which of the following best describes a free market economy?

• The businesses that make products and services.

• The supply of a product does not meet the demand.

• Every product in the market is given away.

• People can make and sell any product or service allowed by law.

This allows a bank to pay a seller with money from a buyer's account.

• check

• savings

• competition

• interest