What is Economics?
What is economics?
Economics is the study of how people make choices with limited resources.
What is a need?
Something people must have to live.
What is bartering?
Trading goods or services without using money.
Name one problem with bartering.
Possible answers: no one wants your item, it takes too long, goods spoil, goods are hard to divide.
What is opportunity cost?
What you give up when you make a choice.
Why do people have to make choices in economics?
Because people cannot have everything they want.
What is a want?
Something people would like but do not need to survive.
What must happen for a barter to work?
Both people must want what the other has.
Why is bartering slow?
People must find someone who wants what they have.
What is the opportunity cost of watching TV instead of doing homework?
The chance to finish homework or learn.
Name two resources people make choices about.
Time and money (also acceptable: goods, services).
Is clean water a need or a want? Why?
A need, because people need it to live.
Give one example of bartering.
Trading food for clothes or a service for a service.
Why is it hard to divide some goods in bartering?
Some items cannot be split fairly.
If you trade your toy for candy, what is the opportunity cost?
The toy you gave up.
Is choosing how to spend your allowance an economic choice? Why?
Yes, because you must decide how to use limited money.
Can the same item be a need for one person and a want for another?
Yes, because people’s situations are different.
Did people barter before money existed?
Yes, bartering was used before money.
Why is bartering risky with food?
Food can spoil and lose value.
Why does every choice have an opportunity cost?
Choosing one thing means giving up another.
How does economics help people and communities?
It helps them make smart choices about using resources to meet needs and wants.
Why do families usually choose needs before wants?
Needs are necessary for survival and safety.
Why might bartering work better in small groups than big cities?
It is easier to find people who want what you have.
Why did large communities need something better than bartering?
Bartering was too slow and difficult for many people.
How can thinking about opportunity cost help you make better choices?
It helps you think about what you might lose before deciding.