Economics

What is the purpose of an advertisement?

• to convince us that we need something enough to buy it, even if we only want it.

• So we can watch it on TV.

The United States has a Market Economy. Which statement best descirbes a Market Economy.

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

• The government controls what you can buy.

It is better if you have more income (Money) than expenses (Bills).

• True

• False

How does a budget help you get things you want?

• Budgets help us plan ahead and save money for things we want after buying things we need.

• Budgets help you lose money

What is credit?

• we borrow money and pay later

• we loan money to other people

What is debt?

• Money we owe to someone

• Money in our pocket

What are the four sectors of the United States Economy?

• Household, Government, Business and Banking

• food, clothes, money and kids

What should you make sure to include when creating a personal budget?

• Rent

• Candy

• toys

What is a consumer?

• a person who purchases goods and services for personal use.

• someone who sells stuff

What is a producer?

• a person, company, or country that makes, grows, or supplies goods or commodities for sale.

• someone who buys stuff