1. Introduction to Economics

2. economics the study of the making, buying, and selling of goods or services – A good is something that you can use or consume, like food or CDs or books or a car or clothes. You buy a good with the idea that you will use it, either just once or over and over again. – A service is something that someone does for you, like give you a haircut or fix you dinner or even teach you social studies. You don't really get something solid, like a book or a CD, but you do get something that you need.

3. Which of these objects are goods? Which are services? Write down your answers. A B C D E F G HI

4. Answers: A)GoodB) GoodC) Good D) GoodE) ServiceF) Service G)ServiceH) GoodI) Service How did you do?

5. Wants vs. Needs What are they exactly? A need is something you have to have – something you can't do without. A good example is food. If you don't eat, you won't survive for long. Many people have gone days without eating, but they eventually ate a lot of food. You might not need a whole lot of food, but you do need to eat. A want is something you would like to have – It is not absolutely necessary, but it would be a good thing to have. A good example is music. Now, some people might argue that music is a need because they think they can't do without it. But you don't need music to survive. You do need to eat.

6. Producers and Consumers A producer is anyone who makes or grows a good or performs a service. A consumer is anyone who buys a good or a service.

7. Supply and Demand The basic concept of economics is Supply and Demand. These are really two separate things, but they are almost always talked about together. – Supply is how much of something is available to buy – Demand is how much of something people want to buy

8. The supply of mint chocolate chip ice cream is gone at “Bubba’s Ice Cream” because it was in high demand (wanted) by many customers. Bubba’s Ice Cream Look at the chart on the left to see what favors are in supply at “Bubba’s Ice Cream”.

9. Production of Goods LandLabor Capital All natural resources used to make products Human effort provided in the making of products Money or property That is used to make a product or make more money  plants  animals  mining  people working  people with “brain power”  buildings  machinery

10. manufacturing The use of machines, tools, and other labor to produce goods for use or sale = Labor Machines/tools The GOOD to be sold

11. imports and exports import Goods brought into a country from another country

12. exports  Goods sent out to other countries

13. cash crops Crops that are grown for selling rather than for providing for a family CASH CROP OF CORN FAMILY GARDEN

14. Write your summary!