Things we would like to have but can live without (video games, TV's, iPods)
Things we must have to live (food, clothing, shelter)
Something people make or grow and then sell (food, clothing)
That workers do for others (car wash, hair cut)
goods and services
the decision to buy one thing instead of another. The thing you choose to buy is your economic choice.
giving something up to get something else; what you give up when you make an economic choice. Example: You would like to buy a pencil and an eraser but only have enough money for one product. If you buy the pencil, that is your economic choice and the eraser is your opportunity cost.
a person who makes a good or provides a service
someone who buys goods or services
Barter Economy (bartering)
trading of goods and services without money
buying something using money, what we use today
all the money a person earns
putting money somewhere safe so it can be used later
a plan that shows income, spending and saving
when there isn't enough of something to satisfy everyone's needs and wants. If something is scarce, it means there isn't enough of it. (If a store runs out of squinkies, there is a squinky scarcity.)
items that are useful and needed to run a business. Some resources are scarce (could run out): wood, gasoline, coal
materials that come from nature: water, wood, plants, soil, sunshine, coal, etc.
the people working to produce goods and services
machines, tools and buildings that are used to produce goods and services
when a person or group focus on producing one thing and are very good at it, this encourages trade because people want what they don't have