Key Terms
A person or business that makes something is a…
Producer
Not enough of a resource is called what?
Scarcity
Trees, soil, and water are what type of resource?
Natural Resources
What you give up when you make a choice is called…
Opportunity cost
People who USE goods and services are called…
Consumers
Items people buy, like lemons or cups, are called…
Goods
You work to squeeze lemons and mix lemonade. What resource is this?
Human Resource
Tools, machines, and buildings are what type of resource?
Capital Resources
The benefit of choosing something is the…
Gain or reward you get from it.
"Using resources wisely" helps us deal with…
Scarcity
Things people do for others, like fixing a car or cutting hair, are called…
Services
A person who buys your lemonade is called a what?
Consumer
Scarcity forces people to…
Make choices
You want to save money. What should you avoid?
Unnecessary spending
The person or business that creates goods or services is the…
Producer
When many customers want something, demand goes…
Up
You choose to buy lemons instead of cups. The thing you did NOT choose is called what?
Opportunity Cost
Why can’t people have everything they want?
Resources are limited
Your supply of lemons runs out. What do you do?
Make a new choice (buy more, change plan, etc.)
What are wants?
Things people would like to have but don’t need.
When a lot of a product is available, supply is…
High
Choosing the best option between two choices is called what process?
Economic decision-making
Why do countries trade with each other?
They can’t produce everything they need.
If a resource becomes scarce, what usually happens to its price?
It goes up
What is the main economic problem all societies face?
Unlimited wants + limited resources = scarcity.