Understanding Goods and Business Economics

What are goods?

• Things people make or grow and sell

• Actions people do for others

• Places people visit

• Games people play

What is an example of a good sold at a grocery store?

• Haircut

• Shampoo

• Fruits

• Hairbrush

What do you call people who spend money to buy things they need or want?

• Producers

• Consumers

• Sellers

• Makers

What is the study of how goods and services are produced, distributed, and consumed called?

• Biology

• Chemistry

• Economics

• Physics

What is the role of human resources in a business?

• To provide natural resources

• To make products or provide services

• To supply capital resources

• To calculate profits

What can bicycle factories do with the money they earn?

• Buy more bicycles

• Make more bicycles

• Sell lemonade

• Buy lemons

Why might businesses have higher production costs?

• Because they want to

• Due to government regulations

• To make more products

• To hire more workers

What might businesses do if they have higher production costs?

• Lower the price of their product

• Stop making products

• Raise the price of their product

• Give products away for free

Why do businesses have to make decisions about resources?

• Because they have unlimited resources.

• Because resources are always available.

• Because resources can be scarce.

• Because they don't need to plan.

What is an example of a product that can become scarce?

• Water in the ocean.

• Flour made from wheat.

• Air in the atmosphere.

• Sand in the desert.