The Economic Way of Thinking

Definitions

100

the study of how people satisfy their unlimited wants with limited resources

Economics

200

work that one person performs for another for payment such as lawyers, teachers, doctors, etc.

Services

300

person who buys goods/services for personal use

Consumer

400

Person who makes goods or provides services

Producer

500

physical objects that can be purchased, such as food, clothing, and furniture

Goods

PACED

100

P stands for

Problem

or

Define the Problem

200

A stands for

Alternatives

or

List your Alternatives 

300

C stands for

Criteria

or

State your criteria

400

E stands for

Evaluate

or

Evaluate your alternatives

500

D stands for

Decision

or 

Make your Decision

Definitions 2

100

things that are necessary for survival (food, clothing, shelter, etc.)

Needs 

200

things that are desired, nut not necessary for survival

Wants

300

situation that exists when there are not enough resources to meet human needs/wants

Scarcity

400

benefits offered to encourage people to act in certain ways

Incentives

500

to make decisions according to what you believe is the best combination of costs and benefits

Economize

Fill in the Blank

100

Every choice involves some type of _______

Cost

200

Scarcity affects _________

Everyone

300

Food, clothing, and shelter are examples of ________

Needs

400

Video Games, food, furniture are examples of _____

Goods

500

people have unlimited, ever-changing ______

Wants