economics
economics
the study of how people make decisions about resources
resources
something that satisfies a human need
types of resources
natural
human
capital
goods
merchandise
items sold or exchanged
services
something done by a person, you pay for their skill
producers
they make the goods to sell
consumers
they buy the goods or services
2 types of natural resources
renewable
&
nonrenewable
import
when a country buys resources or goods from another country
export
to sell our country's resources or goods to another country
supply
the amount of something being offered to a consumer, from a producer
demand
the measure of how many consumers want to buy something from a producer
shortage
having more demand than supply
surplus
having more products than demand
budget
a plan for your money
shortage
the demand for a product is higher than the supply
opportunity cost
is what you do not get when you make a choice
interest rate
fee charged when money is loaned to someone
entrepeneur
a person who takes risks to create or find a better way to do something
expenses
the cost of doing business
bank
a safe place to keep our money
transaction
any type of business you do at the bank
deposit
any money that is added to your bank account
withdrawal
any money that you take from or out of your bank account
taxes
money collected by the government
ex: sales tax, property tax, school tax, payroll tax
the government provides services in exchange for the money.
Ex: libraries, schools, parks, emergency services