1-6 Test

1. What does it mean when we say that land is scarce? Answer: It means that you can not make any more land and that it should be used wisely.
2. In the summer there is sometimes a scarcity of water. Why? Answer: In the summer we sometimes do not get enough rain and the rivers and streams where we get our drinking water begin to dry up.
3. Review What is a good and what is a service? A good is something that you can purchase and then take home with you. A service is something that you can purchase and then someone does something for you. A good is the lawn mower that someone purchases and a service is when someone uses that lawn mower to mow another person’s grass for a fee.
4. What is the difference between a person’s needs and their wants? Answer: A need is what you need to stay alive such as food, water, and shelter. A want is something that you would like to have but do not have to have to live.
5. All products that are made are limited. What does this mean? Answer: This means that when things are made a company only makes a certain number of the item.
6. What does it mean to barter with someone? Answer: to trade with them
7. What is the purpose of money? Answer: Money is used to exchange with someone when they have done work for you.
8. What items are used to meet your wants and needs? Answer: goods and services must meet your wants and needs
9. Is everyone’s wants and needs the same? Answer: No
10. If no one buys a good in a store, do you think that the company will continue making the good? Answer: No
11. If a car company makes 100 new cars this year and they all are sold by the end of January do you think the company will make more cars the next year? Answer: probably because they had no cars to sale for 11 months and this would not be good for the company.
12. What is a consumer? Answer: Someone who buys something is a consumer
13. What is a producer? Answer: It is the company made up of workers that makes a good that will be sold to the consumer.