Economics

Why do people trade?

• To get things they already have

• To make friends

• To get things they need and want but do not have

• To be popular

John had $12 to spend at the shop. He had to make a choice between buying a toy or a book. John decides to buy the toy. This is an example of-

• specialization

• economic choice

• producer choice

• scarcity

Choose three examples of specialization

• There are many miners in Virginia because the many coal mines.

• Fisherman in Maryland catch crab that will be shipped all over the United States for people to enjoy.

• Large amounts of oranges are grown in Florida because of the good climate.

• A farmer in Texas grows a variety of crops to feed his family and share with this neighbors.

What are the benefits of specialization Choose three

• Becoming better at doing one thing

• Becoming self-sufficient

• Only having to focus on a certain good.

• Being able to produce everything

• Being faster and more efficient

Examples:

A bakery making doughnuts

An architect drawing a house

A hairdresser

What are these examples of?

• opportunity cost

• interdependence

• economic choice

• specialization

The second best choice that was given up when making an economic choice is the

• resources

• economic choice

• consumer choice

• opportunity cost

Belsy went to the store to buy some presents. She wanted to buy a doll, a toy truck and a book. She did not have enough money to buy all three. What does she need to consider when making a choice of what to buy?

• What are other people at the story buying?

• How much money did she leave at home?

• What will she have to give up?

• How can she buy all the items in her cart?

Materials that come directly from nature.

Identify the word that is defined above

• Natural resources

• Human resources

• Producers

• Capital resources

What capital resource would have been used to build ships?

• People

• Wood

• Tools

• Water

People working to produce goods and services.

Identify the word that is being defined.

• Producers

• Natural resources

• human resources

• capital resources