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.
Anything that can be grown or manufactured
The degree of availability of an item
Someone who creates or manufactures a good or service
through physical or mental effort
Something that a person does for someone else in exchange
for money or value
A person who buys a good or service
Limited Resources
Items that are scarce in nature and cannot be renewed
Unlimited Resources
Materials that are endless and/or can be renewed
The amount of a good or service that consumers are willing and
able to buy
A limited supply of resources in comparison to unlimited wants
and needs
The price that satisfies both producers for profit and
consumers for value
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: