Economics Basics — Answer Key
Part A: Fill in the Blank
Write the missing word or number on each line.
1. A carpenter who builds tables to sell is a producer.
The carpenter uses wood and tools to create a finished good — a table — that others will buy. Anyone who makes goods for sale is called a producer.
2. When you pick a banana over an apple, the apple is your opportunity cost.
Opportunity cost is what you give up when you make a choice. By choosing the banana, the apple you had to skip is your opportunity cost.
3. A vet who takes care of sick animals provides a service.
A vet doesn't hand over a product — they use their skills to help pets feel better. That kind of helpful work is called a service.
4. If only a few umbrellas are left during a rainy week, the supply is low.
Supply is how much of a product stores have on hand to sell. When hardly any umbrellas are left, it means the supply has run low.
5. A child who buys a juice box at the store is a consumer.
Even kids become consumers when they pay for goods or services. Buying a juice box means using money to get a product, which is the job of a consumer.
6. Keeping part of your allowance in a savings jar is called saving.
Saving means setting money aside to use later instead of spending it today. A savings jar is a simple way to save allowance for bigger goals.
7. A book you buy at a bookstore is an example of a good.
A book is a physical item you can hold, take home, and keep. Objects like this that people buy and own are called goods.
8. Warm clothes and a safe home are needs that every person must have.
Needs are the basic things people require to live safely and healthily. Shelter and warm clothing protect people from danger, so both are needs.
9. When many children want the same board game, demand for it is high.
Demand describes how strongly people want to buy a product. When many shoppers chase after the same game, demand for it climbs high.
Part B: Matching
Match each item on the left to the correct answer on the right.
1. Match each item to its correct answer.
You choose a book over a puzzle.
→ Opportunity cost
Consumer
A baker makes fresh bread each morning.
→ Producer
Service
A tutor helps you with homework.
→ Service
Opportunity cost
A family buys milk at the market.
→ Consumer
Producer
Correct matches: You choose a book over a puzzle. → Opportunity cost; A baker makes fresh bread each morning. → Producer; A tutor helps you with homework. → Service; A family buys milk at the market. → Consumer.