Economics Study Guide
economics
Economics has to do with money and
the choices we make on whether to
spend our money on needs or wants or
save our money. It's businesses and
how they work. It's lemonade stands
and how many dollars they take in. It's
Pokemon and baseball card collections.
It's taxes and allowances. Economics is
part of almost everything in our daily
lives.
money
used in exchange for goods and
services
3 forms of money
1. coins
2. paper bills
3. checks
barter
trading one good or service for
another without the use of
money
goods
things that are made or grown
services
work that someone does for
someone else
consumer
someone who buys or uses
goods and services
(think customer)
producer
*someone who makes or grows
goods to sell
**someone who offers services
to sell
resources
used to produce goods and
services for the wealth (money)
of our country, resources are
limited
natural resources
things found in nature (ex. water,
trees, sunlight, eggs, oil)
human resources
people at work
capital resources
things that have been made by
humans that are used to make
other goods or services (ex.
factory building used to make
shoes, backhoe used to make a
building, hairdryer used at hair
salon)
scarcity
a shortage, when there isn’t
enough of something to satisfy
our needs or wants
There is often a scarcity of bread before a snowstorm.