People and the Economy

What does scarcity mean?

• Having too much of something

• A shortage of goods and services

• Saving more than you spend

• Always getting what you want

What is spending power?

• The power to make rules

• How many items a store can sell

• The amount of money a person has and what they can buy with it

• A credit card limit

What is opportunity cost?

• Money you borrow

• The value of what you give up when you make a choice

• Your total income

• A sale on toys

What is an incentive?

• A type of store

• A reward that encourages an action

• A bank account

• A tax

What is advertising?

• A way to charge more money

• A bank loan

• A way to get people to notice and buy a product or service

• A job that pays extra

What is interest?

• Extra chores

• A sale price

• A small fee paid to you by the bank for saving money

• A test in math

What does promote mean?

• To ignore something

• To lower a price

• To make something well known

• To cancel an order

What does it mean to prefer something?

• To ignore it

• To like it better than something else

• To buy it by mistake

• To sell it quickly

What does scarcity force people to do?

• Buy more than they need

• Make choices between wants

• Stop working

• Always save money

What is one reason people save money in a bank?

• To lose it

• To earn interest on their savings

• To get rid of coins

• To pay more taxes