Name _________________ Economics Study Guide

Economics Study Guide
Name _________________
Directions: Fold study guide in half. Ask the question on the left. Check by turning the page
over to look at the answers on the back. (This guide can be used alone or with a partner.)
*Please remember this is a guide and the test may ask questions that are not on this guide.*
1. What are goods?
1. Things people make or use to satisfy
their needs and wants are goods.
2. What are services?
2. Activities that satisfy needs and
wants are services.
3. What is a consumer?
3. A consumer is a person who uses
goods or services.
4. What is a producer?
4. A producer is a person who makes
goods or provides services.
5. Can people have everything that they
5. No, people cannot have everything
that they want. They must make choices.
6. What is opportunity cost?
6. What you give up to get what you
want is the opportunity cost. (The item
you give up.)
7. Scarcity is when there are not
enough of the things you want. (Goods
run out.)
8. The next best choice is called the
opportunity cost.
9. Money can be paper bills, checks, or
10. Two synonyms for barter are trade
or exchange.
7. What does it mean when a good is
8. What is opportunity cost?
9. Give an example of money.
10. What is a synonym for barter?
(Remember a synonym is a word that means the same
11. Why do people save money?
12. Name four natural resources.
By Tammy Horton
11. People save money so that they may
buy something in the future.
12. Natural resources include water, soil,
wood, and coal.
Copyright 2013
13. Name four human resources.
14. Name four capital resources.
15. What is specialization?
13. Human resources include teachers,
painters, farmers, and waitresses.
14. Capital resources include
computers, pencils, hammers, and
vehicles (cars, trucks, etc.).
15. Specialization is when people focus
on a product or service. (Examples:
Teachers specialize in educating children.
Painters specialize in painting houses.)
16. Why do people who specialize have to 16. People need other goods or services
depend on others?
that they cannot produce on their
17. What is an economic choice?
17. An economic choice is when you
choose between products or services
that you need or want.
18. What is supply and demand?
18. Products (goods) are made
depending on the need or wants of
the consumers (people).
By Tammy Horton
Copyright 2013