Chapter 8 Study Guide by Mrs. Masters

Question - 1 Week Earning Spending Saving week 1 $20.00 $5.00 week 2 $14.00 $3.00 $11.00 week 3 $10.00 week 4 $2.00 $8.00 Total $54.00 $15.00 $29.00 1. During which week did you earn the most money?

Answer - 1 week 1

Question - 2 Week Earning Spending Saving week 1 $20.00 $5.00 $15.00 $14.00 $3.00 $11.00 week 3 $10.00 week 4 $2.00 $8.00 Total $54.00 $39.00 2. Suppose you want to buy a basketball that costs $40.00. How much more money will you have to save to buy the basketball?

Answer - 2 $1.00

Question - 3 3. What is a word for a person or group who uses products?

Answer - 3 consumer

Question – 4 How do consumers depend on producers?

Answer - 4 Consumers need the goods that producers sell.

Question - 5 What part do banks play in our economy?

Answer - 5 Banks lend people money and are places to save money.

Question – 6 What is an economic choice?

Answer - 6 a decision to buy one thing instead of another

Question – 7 You were thinking about buying either a new CD or a goldfish with a fishbowl. You decided to buy the fish. What do you call the CD?

Answer - 7 your opportunity cost

Question – 8 What usually happens when demand for a good or service increases?

Answer - 8 its price goes up

Question - 9 Suppose the same soccer ball is on sale in three stores in your town. How does competition such as this affect prices?

Answer - 9 Competition usually makes the price lower.

Question - 10 A shoe store in your town has a sale and the price of sneakers goes down. What will probably happen?

Answer - 10 More people will buy shoes.

Question - 11 How can having a sale help a bike store owner earn a profit?

Answer - 11 The store owner will sell more bikes.