Economics

Economics Economics is the study of how people produce, distribute, and consume things Economics is the study of how people produce, distribute, and consume things

Goods Goods are items that people make and use Goods are items that people make and use examples – toys, food, carsexamples – toys, food, cars

Services Services are things that people do for others Services are things that people do for others examples – doctors, mail carriers, teachers, plumbers, mechanics, truck drivers, hotel workers, house cleanersexamples – doctors, mail carriers, teachers, plumbers, mechanics, truck drivers, hotel workers, house cleaners

Supply Supply is the amount of product that is made and available to buy Supply is the amount of product that is made and available to buy example – Swimsuits. These are not usually available during the winter time.example – Swimsuits. These are not usually available during the winter time.

Demand Demand is the amount of that product that people are willing to buy Demand is the amount of that product that people are willing to buy example – School supplies. Because students are going back to school, many stores have more school supplies in stock than usual.example – School supplies. Because students are going back to school, many stores have more school supplies in stock than usual.

Producers Producers are people who make goods Producers are people who make goods examples – Walmart, Ford Motor Company, Fantastic Sam’s, Nike examples – Walmart, Ford Motor Company, Fantastic Sam’s, Nike They set the prices that people pay They set the prices that people pay They can usually charge more for an item if there is a high demand for it and the supply is limited They can usually charge more for an item if there is a high demand for it and the supply is limited

Consumers Consumers are people who use goods Consumers are people who use goods examples – Mrs. Pence, Johnston Elementary, your parents, YOU!examples – Mrs. Pence, Johnston Elementary, your parents, YOU!

Opportunity Cost Business owners must make smart decisions based on opportunity costs Business owners must make smart decisions based on opportunity costs Opportunity cost is the value of what must be given up in order to produce goods or services Opportunity cost is the value of what must be given up in order to produce goods or services Example: Mr. Pence wanting a new, updated computer OR the family taking a vacation.Example: Mr. Pence wanting a new, updated computer OR the family taking a vacation.

Exports Goods that are sold to other countries are called exports Goods that are sold to other countries are called exports Example: the U.S. exports a lot of food to other countriesExample: the U.S. exports a lot of food to other countries

Imports Goods that one country buys from another country are called imports. Goods that one country buys from another country are called imports. Example: Nike shoes, some foreign made cars, computers, clothes, and more!Example: Nike shoes, some foreign made cars, computers, clothes, and more!