ECONOMICS “The Study of Money” Sol 2.7, 2.8, 2.9 Mrs. Long April 3, 2008

What are Natural Resources? Natural resources come from NATURE. They are materials found in and on the earth. Examples would be water, soil, wood, and coal.

What are Human Resources? Human Resources are PEOPLE who work to produce goods and services. People have many kinds of jobs such as being farmers, miners, builders, and painters.

What are Capital Resources? Capital resources are the tools people make and use to make other things. Capital resources can also be used to do work. Hammers, computers, trucks, lawn mowers, and factory buildings are examples of capital resources.

A good is something that someone makes that you want or need.

A Service is an activity that you want or need A Service is an activity that you want or need. It is something that someone does for you.

What is a Producer ? Producers are people who use natural, human, and capital resources. One example is a person who makes a car. Another example is a person who bakes a cake.

What is a Consumer ? Consumers are people that buy something. (CUSTOMERS) You can buy two kinds of things: goods and services.

Barter Barter is to trade goods and services without the use of money. For example: the early settlers and Native Americans bartered with each other.

Economic Choice An economic choice is when we make a choice using money. When we make an economic choice we choose between things we want.

Opportunity Cost If we have $3.00 to spend, we may choose to rent a video or eat at our favorite fast food restaurant. We cannot do both. What we give up when we make an economic choice is called our opportunity cost.

Scarcity Scarcity is when we cannot have everything we want at the same time. Oh Scarcity (sung to the tune of Oh Christmas Tree) Oh Scarcity! Oh Scarcity! We can’t have all the things we want. We cannot have it all. We really want a lot of stuff. But sometimes there’s just not enough. Oh scarcity! Oh Scarcity!

REVIEW Draw a line from the vocabulary word to the correct definition. Consumer Good Barter Natural Resources Human Resources Materials that come form nature. To trade goods and services without using money. When you buy something you are a Something that someone makes that you want or need. People who work in jobs to produce goods or services.

Review Continued… The tools people use to make other things. When we cannot have everything we want at the same time. When we make a choice using money. What we give up when we make an economic choice. An activity that you want or need that someone does for you. People who use resources to produce goods and provide services. Service Producers Economic Choice Opportunity Cost Scarcity Capital Resources