Unit 1 Econ Only 25-26

Economics

• Study of the Earth’s resources

• Study of how people use resources to produce and exchange goods and services

• Study of ancient civilizations

• Study of how governments are elected

Production

• The way goods are traded between countries

• The act of making goods or services

• The amount of money made after costs

• The process of using up resources

Distribution

• Giving out or delivering goods and services to people

• Storing goods for later use

• Selling goods to only one customer

• Importing goods from another country

Consumption

• The act of creating goods

• The use of goods and services to satisfy needs and wants

• Trading goods for other goods

• Increasing the amount of goods available

Goods

• Physical items people buy or use

• Activities done for others

• Natural resources like water

• The process of making a profit

Services

• Work done for others to satisfy needs and wants

• Money earned from selling goods

• Machines used in production

• Items bought in a store

Scarcity

• When there is more than enough of something

• When resources are limited compared to wants

• When a country has many exports

• When demand is low

Opportunity Cost

• The money made after expenses

• The value of the next best thing given up when a choice is made

• The cost of producing goods

• The price charged for a service

Consumer

• A person who makes goods

• A person who uses goods or services

• A company that sells goods

• A factory owner

Producer

• Someone who uses goods and services

• Someone who creates goods or provides services

• A person who imports goods

• A store that sells items