| Using Money |
| #1 |
What is money? |
Money is anything widely accepted in exchange for goods and services. |
| #2 |
How do people pay for goods and services if they do not use money? |
People barter or exchange goods and services directly. |
| #3 |
When does barter work best? |
Barter works best when each person has something the other person wants. |
| #4 |
Why do people make budgets? |
People make budgets to decide how to use their money. |
| #5 |
How do banks help people? |
They help people to save and earn interest on their money. |
| Barter and Money |
| #1 |
In what ways are barter and money alike? |
Both money and barter are ways for people to buy goods and services. |
| #2 |
In what way are barter and money different? |
Money is small and its value is agreed upon. |
| #3 |
Why do people use money more than barter? |
Money is easier to carry and can be used whenever someone is ready to sell. |
| #4 |
Name two ways people can earn money. |
By working and by earning interest from the bank |
| #5 |
When bartering, what happens if nobody wants the item you want to trade? |
You could not make a trade and would have to find another item. |
| Making Choices |
| #1 |
What should you think about before buying an item? |
Think about the price of the item and how much money you have saved. |
| #2 |
What does opportunity cost mean? |
It means that you must give up the possibility of buying one thing when you buy another. |
| #3 |
What are some ways that stores compete to win buyers? |
They compete by lowering prices, having more selection, and better quality. |
| #4 |
What happens to prices when there is competition between sellers? |
The prices will be lower. |
| #5 |
What does it mean when there is a scarcity of something? |
There is not much of it available. |
