Economic Choices — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. You have $10. A snack costs $6 and a toy costs $15. What should you do to save up for the toy?
A) buy the snack and the toy
B) spend all $10 on snacks
C) save your $10 and wait to buy the toy
D) give the $10 away
Saving the $10 is smart because the toy costs $15. If you save and add more money later, you can buy the toy.
2. You have $5. If you buy a comic for $5, you cannot buy stickers for $5. The stickers are called the:
A) price tag
B) opportunity cost
C) paycheck
D) tax
The opportunity cost is what you give up when you choose. Buying the comic means you give up the stickers.
3. Mia has $8 and wants a book for $12. What is the best plan?
A) buy the book with $8
B) save $4 more, then buy the book
C) throw the $8 away
D) stop reading forever
Mia should save $4 more so she has $12 total. Saving helps her reach her goal and pay the full price later.
4. Sam trades his apple for his friend's orange without using money. This is called:
A) shopping
B) bartering
C) stealing
D) paying
Bartering means trading items without money. Sam and his friend both get something they want by swapping their fruit.
Part B: Fill in the Blank
Write the correct answer on each line.
1. To keep money for later is called to save.
Saving means putting money away for later, often in a bank or piggy bank, so you can buy bigger things in time.
2. To use money to buy something right now is called to spend.
Spending means using money now to get a good or service. Wise spending means picking things you truly need or want.
3. When you pick one thing and give up another, you are making a choice.
An economic choice happens when you must pick between two things. Every choice means you give up something else too.
4. Trading one thing for another without money is called bartering.
Bartering is an old way to trade goods or services. Two people swap things they each want, no money needed at all.
5. The thing you give up when you make a choice is the opportunity cost.
Opportunity cost is what you give up. If you buy a book instead of a toy, the toy is the opportunity cost.