Economics Study Guide
A need is something that you must have to survive. Things like food,
shelter, clothing and water.
A want is something you would like to have. They are not necessary to
survive – like electronics and cars.
Economic Choice is when you have two or more options but you can’t
have everything. You have to pick something.
Opportunity Cost is what you give up when an economic choice is made.
Ex – You can either get a video game or new shoes. If you pick the
shoes, your opportunity cost is the video game.
A consumer is someone who buys products from a producer.
A producer is someone who makes goods or provides services.
Goods are things that you can purchase to satisfy wants and needs like
toys, video games or furniture.
Services are activities that satisfy wants and needs. They include a
barber, plumber, and teacher.
Economic Specialization is when someone focuses on being very good at
one thing – one good or service. Ex. Pepsi Co. only makes drinks. They
don’t grow their own sugar or mine the oil to make the plastic bottles.
Economic Interdependence is when you depend on others to get the
things you need. Ex. Farmers grow food but don’t build their own farm
equipment.
A budget is a plan for how we spend or save our money in order to get
what we want or need.
Natural Resources are things found in nature and used by living things.
Human Resources are people who work to produce goods or services.
Capital Resources are goods that are manmade and are used to
produce other goods and services.