Trade and Market

What is the definition of currency?

• A type of trade that doesn’t use money

• A country’s money

• The amount of goods available for purchase

• A new invention

What is an example of bartering?

• Paying for groceries with a credit card

• Trading a book for a toy with a friend

• Using a dollar bill to buy a snack

• Depositing money in the bank

What happens when inflation occurs?

• Prices of goods and services go up

• Prices stay the same

• Prices go down

• There is no effect on money

What does a business need to make a profit?

• Sell products for less than they cost to make

• Sell products at a higher price than the cost to make them

• Give away products for free

• Not sell anything

Income is the money earned from:

• Doing a job or providing a service

• Borrowing from the bank

• Trading items

• Giving away money

What happens when supply is high but demand is low?

• Prices go up

• Prices go down

• Prices stay the same

• Businesses stop selling products

If more people want to buy a product, what happens to demand?

• It increases

• It decreases

• It stays the same

• It disappears

Why do people borrow money?

• To take money and never return it

• To use money they don’t have and pay it back later

• To avoid spending money

• To give to other people

What does it mean if something is available?

• It is ready to be used or bought

• It is missing

• It cannot be sold

• It is out of stock

What is an example of risk in a business?

• Buying a toy with cash

• Starting a new store that may not make money

• Giving away products for free

• Selling products that no one wants