Unit 7a: Economics. Vocabulary. How do YOU define economics?. The study of the production, distribution and the consumption of goods and services. The study of making decisions. GOODS. Anything that can be grown or manufactured. SUPPLY. The degree of availability of an item. Producer. - PowerPoint PPT Presentation
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Unit 7a: Economics Vocabulary
Transcript
Unit 7a: Economics
Vocabulary
How do YOU define economics?
The study of the production, distribution and the
consumption of goods and services
The study of making decisions.
GOODS
Anything that can be grown or manufactured
SUPPLY
The degree of availability of an item
Producer
Someone who creates or manufactures a good or service
through physical or mental effort
Services
Something that a person does for someone else in exchange
for money or value
Consumer
A person who buys a good or service
Limited Resources
Items that are scarce in nature and cannot be renewed
Economics
Unlimited Resources
Materials that are endless and/or can be renewed
Demand
The amount of a good or service that consumers are willing and
able to buy
Scarcity
A limited supply of resources in comparison to unlimited wants
and needs
Market Price
The price that satisfies both producers for profit and
consumers for value
Opportunity Cost
What you give up in order to get something
Exercise
Caitlin wants to purchase an ice cream cone that costs $3 and a smoothie that costs $4. However, she only has $5.
Scarcity: Opportunity Cost of Buying the ice cream:
Pierre wants to be involved in both the band and the choir but both of the rehearsals meet at 4 pm.
Scarcity:Opportunity Cost of being in band:
Robert has three cupcakes and wants to eat one and he wants to share with his friends. There are three friends sitting with him at his lunch table.
Scarcity:Opportunity cost of sharing his cupcakes:
Emily is planting a garden. She wants to plant arugula and beets but only has room for one.