Economics By: Ms. Worth’s 6 th Grade Class

Economics Economics- The study of how people use their limited resources in an attempt to satisfy unlimited wants.

Producer A producer is a person who creates economic value or produces goods or services. Examples: Services: Teacher, Policeman, Waitress, Nurse Goods: Cars, gloves, shoes, pencils, PopTarts

A consumer is someone who buys goods or services. Example: My mother was a consumer at the shopping mall.

An example of factors influencing supply and demand is where a store would not be selling winter clothes when it is summertime, instead, the store would be selling swimming suites, shorts, and t- shirts. Stores would NOT be selling hats and scarves In the summer time

Another example of factors influencing supply and demand is: Say the housing market is low. Furniture will not be needed for new houses. Therefore, furniture manufacturers will stop making new furniture, and people lose jobs. If the housing market’s low, furniture will not be needed Couch manufacturers will not be needing to make new furniture, so people will lose their jobs.

Something you have to pay for a good or service. This is not to be confused with opportunity cost, which will be discussed later!

Supply: How much you have of something. Demand: the ability and desire to purchase goods and services at a given price. Supply and Demand

Demand In summer ice cream is in great demand.

Supply Ice cream is in great supply in the summer

Benefit Something that satisfies your wants. Ex: I went to the mall and benefited by buying a new dress.

Opportunity Cost Opportunity Cost will always be your second choice. Ex: In order of desire, I wanted a skirt, dress, and boots. I only had money for one, so I bought the skirt. My opportunity cost was the dress.

Another example of opportunity cost is where you have to give up one fun thing to do another, like when you have two things planned at the same time like bowling and going to a movie, you would have to give up one to do the other. You would have to give up bowling to got to a movie OR You would have to give up the movie to go bowling

Saving Saving, sums of money saved. Any income that is not spent. In an economic sense, savings include purchases of shares or other financial securities. mics/alphabetic.cfm?letter=S#savings

Borrowing Borrowing- Something you take but give back. content.com/bizresourceonline/images/arti cleimages/sb_borrowing.jpg

Definition Definition of investor (noun) form plural: investors 1 : to commit (money) in order to earn a financial return 2 : to make use of for future benefits or advantages

Example Sentences They were deeply invested in the GPS company. She invested her money in the stock market.

Definition Scarcity-a limited quantity of a resource. –Resources are human, capital (man- made), and natural.

rainforests Cheetahs oil coal time We have a scarcity of cheetahs, rainforests, oil, and coal on this planet. My time is scarce. Examples of Scarcity

We hope you become wise economists!