Financial Literacy

Many people earn money at a job. Another way to earn money is . . .

• buying new things

• volunteering for a charity

• keeping money in a savings account

Answer explanation

A bank pays you interest to keep your money there.

Students baked cookies for a fundraiser. This is an example of . . .

• donating

• consuming

• spending

Answer explanation

In a bake sale people give or donate the the cookies or cakes to be sold. The money goes to the charity (like girl scouts or a church group).

Which would be included in a budget?

• earnings

• sleeping

• phone calls

Which of these would be in a budget?

• steps

• calories

• spending

Write a sentence explaining what a budget is.

If demand for products is LOW, what will sellers do?

• Lower the price

• Raise the price

• Keep the same price

If a new book sells so fast that many people can't buy it, what could happen ?

• price could go up

• people won't want the book

• cost to make the book could increase

Which of these explains SCARCITY?

• people buy more products than they need

• people don't earn enough money

• people want more than there is to buy

If a store lowers the price of a product, what will happen to profits?

• They will decrease

• They will increase

• They will stay the same

Henry Food started a company to produce:

• automobiles

• computers

• cookies