Name____________________

Directions: Choose an answer that best completes

the sentence.
1.__________ is the study of how people use
resources.
a.Citizenship
b.Loyalty
c.Economics
2.A fireman is a __________ resource.
a.natural
b.human
c.capital
3.A computer is a __________ resource.
a.natual
b.human
c.capital
4.Farmland is a __________ resource.
a.natural
b.human
c.capital
5.Producers sell __________ and __________.
a.taxes and money
b.savings and resources
c.goods and services

6.People earn an _________ by working.

a.job
b.income
c.savings
7.The governments expenses are paid with
_________.
a.taxes
b.savings
c.resources
8.__________ can be used for sudden expenses.
a.Taxes
b.Income
c.Savings
9.People who buy goods and services are __________.
a.consumers
b.producers
c.workers
10.People who sell goods and services are __________.
a.consumers
b.producers
c.workers
11.Governments collect taxes to pay for community
__________.
a.services
b.products
c.resources
12.An example of a need is

a.an iphone
b.shelter
c.homework
13.An example of a want is
a.an iphone
b.shelter
c.homework
14.Explain the difference between a need and a
want.

15.Why is advertising a product important?

16.List 3 things adults pay taxes on.

_______________
_______________
_______________

Study Guide
Economics
A good is something that you buy.
(You should know examples of goods: toys,
food, books, etc.)
A service is something that someone
does for you. (You should know examples
of services: waitress, manicurist, doctor,
etc.)
People who sell goods and services
are producers.

People who buy goods and services

are consumers.
A need is something that you have to
have in order to survive. (You should know
examples of needs: food, shelter,
medicine, etc.)
A want is something you would like to
own, but dont need it to survive. (You
should know examples of wants: toys,
candy, electronics, etc.)
Adults earn income by working jobs.
Income can be spent on wants,
needs, goods, and services.
Adults can save their income.
Savings are used for unexpected things or
very expensive items.

Adults pay taxes on many things. (You

should know examples of what adults pay
taxes on: homes, food, clothing, etc.)
Taxes are used to pay the
governments expenses. For example:
taxes pay teachers, firemen, and
policemen.
There are three types of resources:
natural, human, and capital.
Natural resources are used from
nature: trees, plants, soil, sun, etc.
Capital resources are tools used to
make the goods and services: paint,
paper, clay.
Human resources are the workers.

Advertising is important because you

want consumers to buy your products.