ECONOMICS The Study of Money

1
ECONOMICSThe Study of Money

• Sol 2.7, 2.8, 2.9
• Mrs. Long
• April 3, 2008

2
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.

3
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.

4
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.

5
A good is something that someone makes that you
want or need.
6
A Service is an activity that you want or need.
It is something that someone does for you.
7
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.

8
What is a Consumer ?

• Consumers are people that buy something.
  (CUSTOMERS)
• You can buy two kinds of things goods and
  services.

9
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.

10
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.

11
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.

12
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 cant have all the things we want.
• Oh Scarcity! Oh Scarcity!
• We cannot have it all.
• We really want a lot of stuff.
• But sometimes theres just not enough.
• Oh scarcity! Oh Scarcity!
• We cannot have it all.

13
REVIEWDraw 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.

14
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