Economics Unit

wants

Examples: tablets, video games, expensive shoes

needs

Examples: food, water, shelter

3 types of Resources

Natural Resources, Labor, Capital

natural resources

Useful things found in nature, Examples: wood, wind, water

labor

work, Examples: teacher, doctor, construction worker

economics

The study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively. The study of how people seek to satisfy their needs and wants by making choices

goods

Things you buy that you touch, Examples: phone, TV, soda

services

Things you pay for that people do for you, Examples: haircut, education, mail delivery

demand

how much in the way of goods and services people want and are able and willing to buy at a given price

profit

the amount of money that a company makes after all the costs of running the business have been paid

producer

a person who makes goods or provides services

wants

things that people would like to have but can live without, such as TVs

needs

things that people must have in order to survive, such as food

opportunity cost

the things you give up when making a choice between two things

scarcity

when there are not enough goods and services to satisfy the wants and needs of the people.

consumer

someone who used goods or services

production

making and providing goods and services for people to buy

human resources

people with skills that do a job

entrepreneur

a person that owns their own business

employer

a person or organization that hires someone else to do work

employee

a person hired by someone else to do a job

specialization

when people do jobs that they are interested in and do best

division of labor

different jobs needed in production are divided among various workers

capital resources

items such as land, buildings, tools, money, etc. that are used in the production of other goods