Unit 7a: Economics

Vocabulary

How do YOU define economics?

The study of the production, distribution and the

consumption of goods and services

The study of making decisions.

GOODS

Anything that can be grown or manufactured

SUPPLY

The degree of availability of an item

Producer

Someone who creates or manufactures a good or service

through physical or mental effort

Services

Something that a person does for someone else in exchange

for money or value

Consumer

A person who buys a good or service

Limited Resources

Items that are scarce in nature and cannot be renewed

Economics

Unlimited Resources

Materials that are endless and/or can be renewed

Demand

The amount of a good or service that consumers are willing and

able to buy

Scarcity

A limited supply of resources in comparison to unlimited wants

and needs

Market Price

The price that satisfies both producers for profit and

consumers for value

Opportunity Cost

What you give up in order to get something

Exercise

Caitlin wants to purchase an ice cream cone that costs $3 and a smoothie that costs $4. However, she only has $5.

Scarcity: Opportunity Cost of Buying the ice cream:

Pierre wants to be involved in both the band and the choir but both of the rehearsals meet at 4 pm.

Scarcity:Opportunity Cost of being in band:

Robert has three cupcakes and wants to eat one and he wants to share with his friends. There are three friends sitting with him at his lunch table.

Scarcity:Opportunity cost of sharing his cupcakes:

Emily is planting a garden. She wants to plant arugula and beets but only has room for one.

Scarcity:

Opportunity cost of planting arugula: