The Big 5 of Economics

Economic Basics
CTE intro FACS
Tomorrows Millionaires
Wants and Needs:
 Wants are things that are nice to have. They are unlimited!
Lots of clothes
Video games
Cell phone
 Needs are necessary to survival.You may die without them!
 When resources are limited, people have to make
Economic resources are what we use to produce goods
and services.
Economic resources are natural, human and capital.
Goods are things you can touch, wear, eat, use, etc.
Services are what others do for you.
The role of government involves deciding how
resources are used.
An economic system is the way a country decides who
gets what resources.
Human Resources:
 mental or physical work by people
Capital Resources:
 tractors, computers, equipment, buildings, etc.
Natural Resources:
 air, water, land, plants, gifts of nature
 Choices involve costs and benefits.
 Each choice has both positives and negatives.
 Our job is to choose so that the limited resources we have are
used in the best way possible.
 Choices can involve your time, your health, your money,
your relationships, your values, your integrity, etc.
 Opportunity cost is the term used to express the difference
between what you chose and what you gave up.
 Choices can affect ourselves.
 Choices can affect others.
 Choices can affect our community.
 Choices can affect our world.
 Choices can affect our future.
 Choices can affect our children.
 Choices can affect our families.
 Choices can affect our careers.
 Choices can affect our happiness.
 Choices can affect our health.
 The affects of our choices are unavoidable.
 Consequences are the outcome as a result of a choice or
Consequences we experience may be the result of someone
else's choice or action.
Consequences can be immediate.
Consequences can lie in the future.
Consequences can be obvious.
Consequences can appear to be obscure.
You cannot avoid consequences.