8th Grade
Study Guide
Chapter 3
Lesson 1
Vocabulary
Goods
Services
Consumer
Producer
Natural Resources
Human Resources
Capital Resources
Scarcity
Opportunity cost
Supply
Demand
Name: _________________
Hour: __________________

Profit
Economist
Traditional Economy
Command Economy
Market Economy
Scarcity requires both _______________ and _______________ to make choices. The unlimited needs and wants of people must be
___________________ with the limited resources in the world.
What are the 4 basic economic questions?
1.
2.
3.
4.
What are the 3 basic kinds of economy?

8th Grade
Study Guide
Name: _________________
Hour: __________________
Chapter 3
Lesson 1
Vocabulary
Goods physical items such as foods, clothing, cars, and houses
Services activities people do for a fee such as car repairs, painting, and
concerts
Consumer a person who buys a good or service
Producer a person or business who uses resources to make goods or
provide services
Natural Resources a part of the natural environment such as water, trees
or minerals
Human Resources people who produce the goods or provide the services
Capital Resources are the money and property – factories, tools, bridges
machines, and other items – used to produce goods and services
Scarcity when people need and want more than the available resources
can provide
Opportunity cost the value of your second choice, the next best alternative
Supply the quantity of a good or service offered for sale
Demand the quantity of a good or service consumers are willing to buy
Profit the amount left after costs are subtracted from the prices
Economist a person who studies the economy
Traditional Economy customs, habits, and beliefs determine how the four
basic economic questions are answered

Command Economy the government controls the economy and answers
The four basic economic questions
Market Economy individuals answer the four basic economic questions
based on supply and demand
Scarcity requires both producers and consumers to make choices. The unlimited needs and wants of must be balanced with limited resources in the world.
What are the 4 basic economic questions?
1 . What to produce?
2. How to produce?
3. How much to produce?
4. For whom to produce?
What are the 3 basic kinds of economy?
Traditional economy, command economy, and market economy