ECONOMICS

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ECONOMICS

• Living and Making Money in Michigan
• by Kristen Dewitt

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WHAT DOES ECONOMY MEAN?

• Economy means how people make and spend money.
• People make goods to sell to others. These
  people make money.
• People buy goods. They spend money.

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WHAT ARE GOODS AND SERVICES?

• Goods are things people sell to make money. Some
  goods sold in Michigan are cereal, cherries, and
  cars.
• Services are things people do to help others.
  Some services provided in Michigan are doctors,
  lifeguards, and chefs.

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WHAT IS SCARCITY?

• Scarcity means that goods are almost gone.
• An example is when I only have one pencil left.

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WHAT IS OPPORTUNITY COST?

• Opportunity cost is when you have to make a
  choice between two things. The choice you did
  not make is your opportunity cost.
• If I have to choose between pizza or hot dogs for
  lunch, and I pick pizza, hot dogs is my
  opportunity cost.

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• THE END