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12 terms

Economics

STUDY
PLAY
SCARCITY
(1) People want more things than they have money to pay for
Example: Wanting 2 CD's for $13 each and only having $25.00 to spend
(2) The goods and services that people produce are limited
Example: Going to rent a movie and none are left
OPPORTUNITY COST
What you give up to get something
Example: The kids in "Econ and Me" giving up the swing set in order to have the clubhouse.
GOOD
Something people want that can be held or touched
Example: food, clothes, cars
SERVICE
Something people do for other people
Example: car wash, doctor, server in a restaurant
CAPITAL RESOURCES
Tools made by humans or money
Example: hammer, truck, glue
NATURAL RESOURCES
Productive resources found in nature; natural resources
Example: water, wood(tree), wool
HUMAN RESOURCES
The work that people do to make goods or provide services; the people that provide the goods/services
Example: designing, stirring, baker, construction worker
CONSUMER
A person who uses goods or services
Example: buying a CD, eating at Taco Bell, reading a book
PRODUCER
Putting resources together (build, make, create, grow) to make goods or provide services
Example: baking a cake, building a bird house, growing a garden
ENTREPRENEUR
People who combine land, labor, and capital to start a business; owners of a business
Example: lemonade stand, your company on Market Day
INTERDEPENDENCE
People depending on each other to complete a job
Example: We are dependent upon farmers to produce vegetables. We are dependent upon bus drivers to get us to school safely.
SPECIALIZATION
People doing certain jobs
Example: In order to get milk, we have the dairy farmer, truckers who take it to the processing plant, people who run the machinery at the plant, people who make the milk containers, truck drivers who take the milk to grocery stores, and grocery store clerks.