Economy of Michigan Review

Economics is

• The study of plants and animals.

• The study of money.

• The study of how people use their money to produce and consume goods and services that people want or need.

Scarcity is

• Having too much of something

• Not enough of something people want, so choices have to be made.

• Making choices

Opportunity Cost is

• What you give up when you make a choice.

• What you get when you make a choice.

• What you want when you make a choice.

A producer is

• Someone who makes stuff

• Someone who combines natural, human, and capital resources to produce goods or services.

• Someone who combines human and capital resources to make tractors

A Consumer is

• Someone who buys things

• Someone who shops a lot

• Someone who uses their income to buy goods or services.

Interdependence

• When people are dependent on other people to do a job.

• When you do everything yourself.

• When you ask for help.

Natural Resources are

• Things made out of plastic

• Things in nature that people find useful.

• Things in the woods.

Human resources are

• skills

• Workers

• Workers and their skills.

Capital Resources are

• Man-made things that are used in production of goods and services.

• Things people make

• Monster-made things

Goods are

• Stuff

• An object people buy that they can touch or hold.

• Something we sell