Understanding Work and Money

What is income?

• Money people save in a piggy bank.

• Money people earn from working.

• Money people find on the street.

• Money people use to play games.

Answer explanation

Income refers to the money people earn from working, which is the primary source of financial resources for individuals. The other options do not accurately define income.

Which of the following is an example of a good?

• A haircut

• A toy car

• A bus ride

• A song

Answer explanation

A toy car is a tangible product that can be owned and used, making it a good. In contrast, a haircut, bus ride, and song are services or experiences, not physical goods.

What do people use income for?

• To buy goods and services

• To make friends

• To play outside

• To watch TV

Answer explanation

People primarily use income to buy goods and services, which are essential for daily living and fulfilling needs. The other options, like making friends or playing outside, do not directly relate to the use of income.

Who is a producer?

• Someone who buys things

• Someone who makes or grows things

• Someone who eats food

• Someone who plays games

Answer explanation

A producer is someone who makes or grows things, such as farmers or manufacturers. This definition distinguishes them from buyers, consumers, or gamers, making the correct choice clear.

Who is a consumer?

• Someone who sells things

• Someone who makes things

• Someone who uses or buys things

• Someone who teaches

Answer explanation

A consumer is defined as someone who uses or buys things. This distinguishes them from sellers and producers, who are involved in selling or making products, respectively.

Which of these is a service?

• A sandwich

• A haircut

• A toy

• A book

Answer explanation

A haircut is a service because it involves performing a task for someone, while a sandwich, toy, and book are physical products that can be bought or sold.

If you want to buy a new toy, what do you need?

• Income

• Homework

• A friend

• A pencil

Answer explanation

To buy a new toy, you need income to pay for it. Homework, a friend, and a pencil are not necessary for purchasing a toy.

Which of these is a choice people can make with their money?

• Earning, spending, and saving

• Sleeping, eating, and running

• Drawing, painting, and singing

• Jumping, skipping, and hopping

Answer explanation

The correct choice is 'Earning, spending, and saving' because these are all financial decisions people make with their money, unlike the other options which relate to activities not directly tied to money management.

What does a producer do?

• Buys goods

• Makes goods or provides services

• Eats food

• Watches TV

Answer explanation

A producer is primarily responsible for making goods or providing services. This distinguishes them from other roles, such as buying goods, eating food, or watching TV, which do not align with the core functions of a producer.

What does a consumer do?

• Sells goods

• Uses or buys goods and services

• Grows food

• Cleans the house

Answer explanation

A consumer is defined as someone who uses or buys goods and services. This distinguishes them from producers, who sell goods, or individuals engaged in activities like growing food or cleaning.