Economics Basics — Answer Key
Part A: Fill in the Blank
Write the missing word or number on each line.
1. An artist who paints pictures to sell at a gallery is a producer.
The artist uses paint and canvas to create new goods for others to buy. Anyone who makes products to sell — even art — is a producer.
2. Using birthday money to buy a toy truck is an example of spending.
Spending is giving money away now in exchange for something you want. Handing over birthday money for a toy truck is a clear case of spending.
3. A school lunch that you pay for in the cafeteria is a good.
Food is something you can see, carry on a tray, and eat — a real physical item. Tangible items like lunch are classified as goods.
4. A plumber who fixes leaky pipes at your home provides a service.
A plumber doesn't leave you with a brand-new item — they do the work of repairing your pipes. Helpful work done for others is called a service.
5. If a store gets a huge shipment of crayons, the supply of crayons is high.
Supply counts how many items are available to sell. A big shipment means the shelves are stuffed with crayons, so the supply is high.
6. A sticker collection is a want because you can live without it.
Stickers are fun but no one needs them to stay alive or healthy. Things people enjoy but can go without are called wants.
7. The person who orders a pizza for dinner is a consumer.
Ordering pizza means paying money to get food. People who use money to buy goods and services are called consumers.
8. Lots of people standing in line for a new game shows high demand.
Demand shows how strongly people want a product. A long line of eager buyers is a big clue that demand for that game is very high.
9. Putting coins from your chores into a piggy bank each week is saving.
Saving means setting money aside rather than spending it. Dropping earned coins into a piggy bank builds up money for future goals, which is saving.
Part B: Matching
Match each item on the left to the correct answer on the right.
1. Match each item to its correct answer.
Many people want concert tickets.
→ High demand
Producer
A farmer sells eggs at a roadside stand.
→ Producer
Consumer
A girl buys a sandwich for lunch.
→ Consumer
Service
A barber cuts hair at a shop.
→ Service
High demand
Correct matches: Many people want concert tickets. → High demand; A farmer sells eggs at a roadside stand. → Producer; A girl buys a sandwich for lunch. → Consumer; A barber cuts hair at a shop. → Service.