Goods, Services, & Scarcity
A vocabulary word that means items people want that can be touched, held, and shared/traded with each other.
What are GOODS?
These are the 3 basic types of productive resources (things we use to make goods and services).
What are NATURAL, HUMAN, and CAPITAL resources?
Who benefits in a voluntary trade?
EVERYONE! Otherwise you wouldn't make the trade...
Why do businesses specialize or use division of labor?
To make MORE goods/increase PRODUCTIVITY
A vocabulary word that means jobs people do for each other to fulfill their economic wants.
Water, wind, oil, trees, soil, and sunshine are all examples of this type of productive resource.
What are NATURAL resources?
How often do we have opportunity cost when we make economic choices?
ALWAYS!
This vocabulary word means trading goods or services without money, just with other goods or services.
What is BARTER(ING)?
What is one problem with using assembly lines?
There are a few...including that one worker can slow all the production, or that it doesn't leave room for creativity, etc.
Is trash/garbage a good, a service, or neither?
NEITHER! (It fulfills no economic wants.)
All the people that work to produce and sell goods and services, from inventors to engineers/farmers to marketers and truck drivers, are this type of productive resource.
What are HUMAN resources?
Vivian can buy either slime, a fidget spinner, or a packet of slap bracelets. Her first choice (which she buys) is the fidget spinner, and the slap bracelets are her second choice. What is her opportunity cost of buying the fidget spinners?
SLAP BRACELETS
Why is money helpful?
It makes trade easier!
This vocabulary word means HOW MUCH/MANY of our goods and services we are able to produce in a given amount of time.
What is PRODUCTIVITY?
What is SCARCITY/SCARCE?
Spoons, buildings, machines, tractors, and a hammer are all examples of this type of productive resource.
What are CAPITAL resources?
Paul's choices for a business are either to start a restaurant or publish a newspaper. He decides to publish a newspaper. What is the opportunity cost of that choice?
The RESTAURANT he now cannot open.
What are the 4 characteristics of good money?
divisible (big and small amounts), portable (you can carry it around), durable (lasts a long time), and scarce (not easy to find)
Farmer Brown wants to increase his productivity, so he invests in a tractor instead of a shovel. What is this an example of?
Improving CAPITAL
In economics, this is the "clue" that tells us how scarce a good or service is.
Corn is this type of productive resource for many products in Indiana--it can be used to make a wide variety of things!
What is NATURAL resource? (Because corn occurs naturally. Even if we get it from farmers, it's still in nature, not manmade...)
To be successful, businesses must produce goods and services that:
A) people want
B) cost a lot of money
C) are special/unique
A (If you don't produce what people want, no one will buy your goods or services! They don't have to be special or cost a lot, but they do have to be in demand!)
This vocab word means the money you make off of your business. (After what you spend on productive resources, any extra money you have is...)
What is PROFIT?
A company decides to send all their workers scholarships for college so that they can get business degrees. This is an example of improving _______.
HUMAN CAPITAL!