ECONOMICS REVIEW

Needs & Wants

Examples: Food Shelter Clothing

Examples Videogames Ice cream Toys

What is a need? What is a want?

Types of Resources

What are the different types of resources? Natural Resources

Materials that come from nature Capital Resources

Goods made by people and used to produce other goods/services

Human Resources People working to produce goods and services

Natural Resource

Human Resource

Capital Resource

Producers & Consumers

What is a producer? People who use resources to make goods

and/or provide services

What is the name for people who buy or use the goods and services? consumers

Economic Scarcity

What is economic scarcity? When there isn’t enough of something to

go around What are some examples of economic

scarcity?

Goods & Services

What is a good? Things people make or use to satisfy needs

and wants What is a service?

Activities that satisfy needs and wants How are goods and services similar?

How are they different?

Some Examples of Goods and Services

Goods Services

Economic Interdependence

Interdependence is when two or more people depend on each other for goods and services Can you think of examples?

Economic Specialization

What is specialization? Focusing on one product or service

What are some examples of specialization?

Specialization in the past

Can you think of examples of specialization in the past?

Interdependence in the Past

Can you think of examples of Interdependence in the past?

Specialization and Interdependence in Virginia

What do we specialize in in Virginia? Shipbuilding

What is an example of interdependence between Virginia and other countries? Other countries depend on Virginia for coal,

and we depend on them for oil

Opportunity Cost

Opportunity cost is… The “next best” choice that you give up when

you make a decision When choosing between pizza, chips, and ice

cream… If you like all three items, and you rank them as

#1 – pizza, #2 - ice cream, #3 – chips Your first choice is :

pizza Your opportunity cost is :

ice cream

Economic Choice

The choice or decision among alternatives or possibilities “alternatives” are all the options or

possibilities you have to choose from