Summative Assessment Study Guide for Economics
LT 1 Students will define basic economic terms related to scarcity (e.g., opportunity cost, wants
and needs, limited productive resources-natural, human, capital) and explain that scarcity
requires people to make economic choices and incur opportunity costs.
LT 2 Students will identify and give examples of economic institutions (banks) and explain how they help
people deal with the problem of scarcity (e.g., loan money, save money) in today’s market economy.










the production, distribution and consumption of goods and services economics
Something you give up in order to get something else or do something else Opportunity Cost
capital, human, and natural are types of resources
Things or items made by people and are used to make other things (tools, machines, factories) Capital
resources
How does scarcity require people to make economics choices?
One way economic institutions (banks) help people deal with the problem of scarcity by loaning money to
people
An example of an economic institution that helps people with money would be a bank
An example of an economic institution that helps people with money in our community would be First
and Farmer Bank
Another example of an economic institution that helps people with money in our community would be
Citizens Bank
Explain how economic institutions like banks help people deal with the problem of scarcity?
LT3Students will define basic economic terms related to markets (e.g., market economy, markets,
wants and needs, goods and services, profit, consumer, producer, supply and demand, barter,
money, trade, advertising)
Lt 4 Students will explain different ways that people acquire goods and services (by trading/bartering
goods and services for other goods and services or by using money).
LT 5 SS-EP-3.4.1 Students will define basic economic terms related to production, distribution and
consumption (e.g., goods and services, wants and needs, supply and demand, specialization,
entrepreneur) and describe various ways goods and services are distributed (e.g., by price, firstcome-first-served, sharing equally).
LT 6 SS-EP-3.4.2Students will describe how new knowledge, technology/tools, and specialization
increases productivity in our community, state, nation and world. SS-EP-3.4.3 Students will define
interdependence and give examples of how people in our communities, states, nation and world depend
on each other for goods and services.
 Production- the process of making a product for sale
 Distribution- the selling and delivery of goods to retailers
 Consumption- the purchase and use of goods and services by consumers
 Goods and services- is the making of an item or providing a service for someone
 Wants and needs- (iphone-want) (food –need)
 Supply and demand- the amount a store has and the people wanting to buy the supply
 Specialization- really good an one thing (shoe store- they only deal with shoes)
 Entrepreneur-new businesses
 ways goods and services are distributed:
1.
2.
3.
By price
First-come-first-served
Sharing equally

When a business is really good at one thing, or sells one kind of item like shoes, they are called
specialization
new knowledge, technology/tools, specialization has helped to increase productivity
