economy of mi
TRANSCRIPT
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Economy of Michigan
Book 2
+scarcity
Not enough of something so people have to make choices.
Example: You don’t have enough money for shoes and a video game, you have to choose 1.
+Limited resources
There are only certain amounts of resources.
Human, natural and capital.
We don’t have an unlimited supply.
+Unlimited wants
There is no end to the number of things people want and need.
We all want more than we have or get.
+Opportunity cost
When you make a choice, your opportunity cost is the thing you gave up.
You also really want the thing you give up.
+Incentive
Something used to get people to buy or produce a certain good or service.
Examples: Sales, rebates, prizes
+Economic activities
Different ways people use resources to produce goods and services
Examples: farming, mining
+Manufacturing
The making of goods in a factory
Example: making cars
+Agriculture
Another word for farming
Raising corn, wheat, soy beans, asparagus
+Tourism
An economic activity in which tourists visit an area and spend money
Tourism is an important economic activity in Michigan
+Tourist
A person who goes sightseeing and spends money in a place away from where he or she lives.
Tourists visit our State Parks
+Research and development
An economic activity where people produce ideas that lead to new or improved goods or services
Research and development businesses often are located near universities and colleges
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+Specialization
When an individual, region or country produces certain kinds of goods or services.
Cherries in MI
Asparagus in Oceana County
Specialization results in people producing fewer goods and services than they consume.
+Trade
To exchange one thing for another.
People trade money for goods or services
+Interdependence
When people are dependent on other people in order to get the things they do not produce.
When people specialize, they become more interdependent
+Export
A good that people in one place send out to people in another place when they trade
Cars are an important Michigan export
+Import
A good that people from one place bring in from another place when they trade
Bananas are a Michigan import
+Public goods and services
Goods and services that are provided by a government
Examples: State parks, state police, state highways
+Fees
Something people pay to a government for being able to do a certain activity
Camping fee at state park
Fishing license fee
Drivers license fee
+license
A legal document giving you permission to do something
Drivers license
+Fines
What people pay to the government for breaking a rule or law
Littering
Loitering
Speeding
Paying taxes late
+Taxes
What people pay to the government in exchange for services like public schools and road repair
Sales tax
Income tax
Property tax