Lesson 99 - Economics Part 2 - 2-19 Flashcards
Earn
to get something, such as money, from working
producer
a person or group who makes/sells products
consumer
a person or group who uses/buys products
economic choice
a decision to buy one thing instead of another
opportunity cost
what you will give us when you choose one thing instead of another
supply
the amount of a product that producers want to sell
demand
the amount of a good or service that people want and can pay for
profit
the money a business has left over after all its costs are paid
needs
things people must have in order to live (examples - housing, clothing, food, and water)
wants
things people would enjoy but can live without (examples - toys, games, t. v.)
scarcity
things that they have very little of; hard to find things (examples - jobs, seafood, popular toys/games)
abundance
things that they have more than enough of; easy to find things (examples - clothing, food, cars)
Why do people save money?
People save money to be prepared for when things break, to buy expensive items they want, or to have if they would lose their jobs
How do producer depend on consumers?
Producers need consumer to buy their products so that they can make money.
How do consumers depend on producers?
Consumers need producers to make the producers so that they can buy the products that the producers sell.
How do supply and demand work together?
When products are in high demand, there is a small supply. This is because everyone wants the products so it sells quickly.
When products are not in demand, the supply is large. This is because not many people want the product, so there are plenty left over.
What do banks do?
Banks allow people to save their money and they lend money to people.
What happens when stores put items on sale?
More people buy items when they are on sale, so the store sells more items and ends up making more money.
If you decide to buy one item rather than another, what are you doing?
You are making an economic choice.
When 2 stores are selling the same item, how does one store get you to come to their store rather than going to the other?
The store that really wants you to buy the item is going to sell the item for less than the other store so that you will go buy it from them since it is cheaper.
What happens to the prices of goods when the demand for the good increases or decreases?
When goods are in high demand, their price goes up?
When goods are in low demand, their price goes down.
