Economics Basics — Answer Key
Part A: Fill in the Blank
Write the missing word or number on each line.
1. A baker who makes bread to sell at a shop is a producer.
A producer is someone who makes, grows, or creates goods for others to buy.
2. When many people want the same toy, we say there is high demand.
Demand is the amount of a product that consumers want to buy.
3. If a store has many apples on the shelf, the supply of apples is high.
Supply is the amount of a product that producers have available to sell.
4. The person who buys a sandwich at a restaurant is the consumer.
A consumer is someone who purchases or uses goods and services.
5. A bus ride is an example of a service because no object is taken home.
A service is work done by one person for another, such as cutting hair or fixing a car.
6. A new pair of shoes is an example of a good you can touch and keep.
A good is a physical item that can be touched and held, such as a pencil, shirt, or apple.
7. Choosing between two things you want is making a choice.
A choice is a decision you make when you pick one option over another.
8. Clean water and food are needs because people cannot live without them.
Needs are things people must have to survive, including food, water, clothing, and shelter.
9. When you give up one thing to have another, that is an opportunity cost.
Cost is the price or amount of money required to purchase a good or service.
Part B: Matching
Match each item on the left to the correct answer on the right.
1. Match each item to its correct answer.
A farmer grows corn to sell.
→ Producer
Good
A child buys a book.
→ Consumer
Consumer
A plumber fixes a sink.
→ Service
Service
A shoe on a store shelf.
→ Good
Producer
A farmer who grows corn is a producer. A child buying a book is a consumer. A plumber fixing a sink provides a service. A shoe on a shelf is a good.