Economic Choices — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. Which of these is a NEED, not a want?
A) a video game
B) clean water
C) a new doll
D) a chocolate bar
Clean water is a need because people must drink water to stay alive. Games, dolls, and candy are fun wants.
2. Which of these is a SERVICE?
A) a loaf of bread
B) a pair of shoes
C) a doctor checkup
D) a box of crayons
A doctor checkup is a service because it is a job a person does for you. The others are goods you can hold.
3. Who is a PRODUCER in this list?
A) a shopper at a store
B) a baker making cupcakes
C) a child eating lunch
D) a family watching TV
A baker making cupcakes is a producer because they are creating a good. The others are all consumers using things.
4. A person who buys and eats an apple is acting as a:
A) producer
B) consumer
C) farmer
D) baker
A person who buys and eats food is a consumer because they are using a good that a producer grew for them.
Part B: Fill in the Blank
Write the correct answer on each line.
1. A need is something you must have to live, like water or food.
A need is a must-have, like food, water, shelter, or clothes. Without needs, people cannot live or stay healthy.
2. A want is something extra, like a toy or candy.
A want is a nice extra. It is fun to have, but people can still live healthy lives without getting every want.
3. A real object you can hold, like a shirt, is called a good.
A good is any real item, like a shirt or toy, that people make, sell, and buy in shops or online stores.
4. A helpful job, like a haircut, is called a service.
A service is a helpful job someone does for another person, like cutting hair, teaching, or fixing a broken car.
5. A person who uses goods or services is a consumer.
A consumer uses goods or services but does not make them. Everyone is a consumer when they eat, shop, or learn.