Goods
What are goods?
THINGS people make or use to satisfy their needs and wants are goods.
ACTIVITIES that satisfy needs and wants are services.
Give an example of money.
Money can be paper bills, checks, or coins.
Can people have everything that they want?
No, people cannot have everything that they want. They must make choices.
Natural resources include water, soil, wood, and coal.
What is a producer?
A producer is a person who makes goods or provides services.
What is specialization?
Specialization is when people focus on a product or service. (Examples: Teachers specialize in educating children. Painters specialize in painting houses.)
What is a synonym for barter? (Remember a synonym is a word that means the same thing.)
Two synonyms for barter are trade or exchange.
Why do people who specialize have to depend on others?
People need other goods or services that they cannot produce on their own.
Name FOUR human resources.
Human resources include teachers, painters, farmers, and waitresses.
What does it mean when a good is scarce?
Scarcity is when there are not enough of the things you want. (Goods run out.)
What is a consumer?
A consumer is a person who uses goods or services.
Why do people save money?
People save money so that they may buy something in the future.
What is opportunity cost?
The next best choice is called the opportunity cost.
Name FOUR capital resources.
Capital resources include computers, pencils, hammers, and vehicles (cars, truckes, etc.).
What is supply and demand?
Products (goods) are made depending on the need or wants of the consumers (people).
What is opportunity cost?
What you give up to get what you want is the opportunity cost. (The item you give up.)
What is an economic choice?
An economic choice is when you choose between products or services that you need or want.