Economics

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Economics

• SOL 3.7
• SOL 3.8
• SOL 3.9
• SOL 3.10

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• Exchange
• To trade one thing for another.
• Example I want to trade in my green disk for a
  blue one.

• Barter
• The exchange of goods or service without money.
• Example Ill give you my cake for your ice
  cream.

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Needs vs. Wants

• Needs what people must have to live.
• Food
• Clothing
• Shelter

• Wants the things we would like to have, but can
  live without.

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Economic Choice

• You make an economic choice when you only have
  money for certain items, not all.
• Example
• I do not have enough money for both popcorn and a
  pretzel. I must choose, so I buy the popcorn.
  That is my economic choice.
• YUM!

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Opportunity Cost

• Opportunity cost what you must give up when you
  make an economic choice.
• Example
• I chose the popcorn, so I have to give up the
  pretzel. That is my opportunity cost.

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Supply and Demand

• Supply is the amount of a good or service
  available.

• Demand is what people are willing and able to
  buy.

I would like to buy one candy cane, please.
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Scarcity - Sometimes there is not enough of
something to go around. That item is scarce.
The Ice Cream Singers
Oh no! Ice cream is scarce!
I scream, you scream, we all scream for ice
cream! La, la, la, la, la!
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What can I do with my money?

• Spend it
• Save it
• Invest it Give people money to use to
  make more moneys, like in stocks and
  bonds.

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Goods and Services

• Goods

• Services

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Three types of resources work together in our
economy
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Natural Resources are things we get from nature.

• Oil Coal Trees Water

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Human resources are jobs done by humans at work.
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Capital resources are the machines, tools and
buildings needed to do a job.
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Producers

• Producers make goods or provide services.

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Consumers

• Consumers use or buy goods and services.

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Economic Specialization

• Individuals or groups who concentrate on one type
  of good or service.
• Apple farmer Carpenter

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Interdependence

• People need each other for goods and services.
• The Ancient Greeks traded their goods across the
  Mediterranean Sea.

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