Economics Basics — Answer Key
Part A: Fix the Sentence
Each sentence has an error. Rewrite it correctly on the line.
1. Fix the sentence:
A haircut is a good because you can hold it in your hands.
Corrected: A haircut is a service because someone does work for you.
The corrected sentence is: "A haircut is a service because someone does work for you.". The original sentence "A haircut is a good because you can hold it in your hands." contained an error that needed to be fixed.
2. Fix the sentence:
A consumer is someone who makes products to sell at a store.
Corrected: A producer is someone who makes products to sell at a store.
The corrected sentence is: "A producer is someone who makes products to sell at a store.". The original sentence "A consumer is someone who makes products to sell at a store." contained an error that needed to be fixed.
3. Fix the sentence:
A toy is a service because it is something you can buy and keep.
Corrected: A toy is a good because it is something you can buy and keep.
The corrected sentence is: "A toy is a good because it is something you can buy and keep.". The original sentence "A toy is a service because it is something you can buy and keep." contained an error that needed to be fixed.
Part B: Fill in the Blank
Write the missing word or number on each line.
1. Something you can touch and buy at a store is called a good.
A good is a physical item that you can touch and hold, such as a toy, a book, or food.
2. A person who buys goods or services is called a consumer.
A consumer is someone who buys or uses goods and services.
3. Food, clothing, and water are examples of needs we all need.
Needs are things people must have to survive, such as food, water, and shelter.
4. A person who grows vegetables to sell at the market is a producer.
A producer is someone who makes, grows, or creates goods to sell to consumers.
Part C: True or False?
Read each statement. Circle True or False.
1. A bicycle is an example of a good.
True False
The statement is true based on economics concepts.
2. A want is something you must have to survive.
True False
The statement is false; check the economics concept carefully.
3. A doctor provides a service when helping a sick patient.
True False
The statement is true based on economics concepts.