Unit5
Economics
1
Scarcity
Scarcity occurs when there’s not enough of
something you want.
2
Is there a scarcity? If so, what is scarce?
3
Is there a scarcity? If so, what is scarce?
4
Economic Problem
In economic problems, people have to make choices
because of scarcity.
5
Is there an economic problem? What is the problem?
Why is it a problem?
6
Choices or Decisions
Because we can’t have everything we want, we
have to decide what things we want and what
things we want to give up.
7
Opportunity Costs
Opportunity costs is the best thing that
you give up to get something.
8
I want to go to the movies, but I only have $10.00. The
movie costs $7.00. I also wanted to buy a new baseball
which costs $5.00.
I have to make a decision on what I want to do? What
will be my opportunity costs?
9
Resources
Resources are things we use to satisfy our
wants.
10
Limited Resources
Limited Resources occurs when there are not
enough resources to satisfy our wants.
11
Human Resources
are resources found in people,
such as their skills and ideas.
12
Natural Resources
Natural resources are resources that
nature provides that we use to
satisfy our wants.
13
Capital Resources
Capital resources are goods that
are used to make other goods or to
provide services.
14
Production
Production is putting resources
together to make goods or provide
services.
15
Producer
A producer is a person makes a good
or provides a service.
16
Test 2
17
Consumer
Consumer is a person who uses a good or
service.
18
Consumption is when a good or
service is being used.
Consumption of your pencil occurs
when you have used your pencil.
19
Good
A good is something people want that you can
hold or touch.
20
Service
A service is you something
people do for other people.
21
Income
An income is the money you earn.
22
Interdependence
Interdependence is when
people depend on each other.
23
Specialize
Specialize is to do a
certain job.
24
Interdependent
Interdependent is depending upon
each other.
25
Production
Production is putting resources
together to make goods or provide
services.
26
Producer
A producer is a person makes a good
or provides a service.
27
Four questions all producers must be
able to answer!
1.
2.
3.
4.
What will be produced?
How will it be produced?
For whom will it be produced?
How much will be produced?
28
Money
Check
Credit Cards
29
Credit Cards are commonly used as a method of
payment.
•Banks issue credit cards to customer’s they trust.
•Banks pay for a customer’s purchase temporarily.
•The customer receives a monthly statement.
•Customers then pay the bank in full or they are charged
interest.
30
Barter– to barter is to
exchange one item for another
without the use of money
31
An example of bartering is
trading a haircut for fixing a
tire.
32
Supply—is the amount that
one has available for use
33
Demand– is the desire for a
product by buyers who are ready
to buy at the price that is asked
(How much is
wanted?)
34
When supply is high and
demand is low the price will be
low.
35
When supply is low and
demand is high the price will
be high.
Example s:
***Gas prices are high.
***Playstation 3 prices
are high.
36
When supply and demand are
balanced, they price will stay
about the same.
37
Profit– the amount of money
that is gained in business after all
expenses have been paid
38
Example:
$300 in sales minus $100 in
expenses equals $200 in profit
39
Risk– to take a chance of
losing or failing
40
Businesses take risks in
hope of making a profit.
41
Budget– A budget is a plan for
saving and spending money.
42
My Monthly Budget
Income from allowance
$25.00
Expenses
Lunch
$5.00
Present
$10.00
Balance
$10.00
43