Economics Basics — Answer Key
Part A: Fix the Sentence
Each sentence has an error. Rewrite it correctly on the line.
1. Fix the sentence:
Saving means spending all your money at the store right away.
Corrected: Saving means keeping some of your money to use later.
The corrected sentence is: "Saving means keeping some of your money to use later.". The original sentence "Saving means spending all your money at the store right away." contained an error that needed to be fixed.
2. Fix the sentence:
A teacher provides a good to students in the classroom.
Corrected: A teacher provides a service to students in the classroom.
The corrected sentence is: "A teacher provides a service to students in the classroom.". The original sentence "A teacher provides a good to students in the classroom." contained an error that needed to be fixed.
3. Fix the sentence:
A want is something you need to stay alive like food and water.
Corrected: A need is something you must have to stay alive like food and water.
The corrected sentence is: "A need is something you must have to stay alive like food and water.". The original sentence "A want is something you need to stay alive like food and water." contained an error that needed to be fixed.
Part B: Fill in the Blank
Write the missing word or number on each line.
1. When you set aside money for later, you are saving.
Saving means keeping money to use in the future instead of spending it right away.
2. A video game is an example of a want because it is not needed to survive.
A want is something you would like to have but do not need to survive.
3. Work that someone does for another person is called a service.
A service is work that someone does for others, like a doctor helping a patient.
4. When you use money to buy something, you are spending.
Spending is the act of using money to purchase goods or services.
Part C: True or False?
Read each statement. Circle True or False.
1. Shelter is a need because people must have a safe place to live.
True False
The statement is true based on economics concepts.
2. A farmer who sells apples is a consumer.
True False
The statement is false; check the economics concept carefully.
3. Saving money means you can buy something you want in the future.
True False
The statement is true based on economics concepts.