📚 Topic Summary
Economics is all about choices! Every day, individuals like you and me make decisions about what to buy, what to sell, and how to spend our time. These are economic choices. Governments also make economic choices, but on a larger scale. They decide how to tax, how to spend money on public services like roads and schools, and how to regulate businesses. Understanding who makes these choices, and why, is key to understanding how our economy works.
🧠 Part A: Vocabulary
Match the following terms with their definitions:
| Term |
Definition |
| 1. Market |
A. Rules set by the government |
| 2. Regulations |
B. A place where buyers and sellers interact |
| 3. Taxes |
C. Money collected by the government |
| 4. Public Goods |
D. Goods available to everyone (e.g., roads, parks) |
| 5. Opportunity Cost |
E. The value of the next best alternative when making a decision. |
📝 Part B: Fill in the Blanks
Complete the sentences below using the words provided: Individuals, Government, Economy, Choices, Resources.
The __________ is a system where __________ and the __________ make __________ about how to use limited __________.
🌍 Part C: Critical Thinking
Think about a recent purchase you made. Explain how both individual choice and government policies (like taxes or regulations) might have influenced that decision.