Economics Vocabulary
Supply - how scarce or plentiful things (products or services) are.
Demand - how much people want a good or service.
Goods - an item that is produced to be sold.
Examples: car, food, gas, coffee.
Service - things people do for you (for money).
Examples: Hair dresser, garbage collector, teacher, bus driver.
Economy - a country's financial state, including goods / services produced, exchange rate, etc.
Production - to make something for sale (done by businesses)
Consumption - to purchase something, or use something (done by buyers)
Specialize - to focus on producing one or two things in abundance, rather than producing many different things.
Export - a product that a country produces and sells to another country
Import - a product that a country purchases from another country
Manufacturing - producing items for sale (typically not agricultural items.. things that can be built in a factory
Port - a city that is near the ocean; good for shipping goods inexpensively to other countries
Petroleum - oil (used to make gasoline)
THIS ONE IS VERY IMPORTANT!
Scarcity - How MUCH of a product there is/how easy it is to get.
All goods/services are considered scarce because there is NEVER enough for everyone to have as much as they want (there is always a limit). However, some things are MORE SCARCE than others.
Example: diamonds are more scarce than gemstones.
Abundance - When there is a lot of product / resource in a certain area.
Types of Resources:
Productive Resources - things people use to make goods or provide services.
Productive Resources include:
Natural Resources - things from the earth (land, soil, water, air, wood)
Capital Resources - buildings, machinery, tools, electricity, plumbing, internet
Human Resources - (also known as LABOR) people that do work to create a product or service.
Entrepreneur - Person who starts a new business (usually taking on financial risk to do so)
Supply and Demand Practice
Directions: First click through the "Market Economy" presentation. Watch it and take notes as you go.
Then, click on the "Supply and Demand" game, and follow the worksheet to manipulate the price.
Then, click on the "Supply and Demand" game, and follow the worksheet to manipulate the price.