Social Studies: People and the Economy Flashcards
What does SCARCITY mean
Where the amount of resource is limited
What is OPPORTUNITY COST
The value of something that must be given up to get the thing you want
What is an INCENTIVE
Something that encourages one to take an action or do something
What is ADVERTISING
The use of public notices to bring attention to a product or service
What is INTEREST
A fee charged by banks for people who borrow money
Or a fee paid by banks to customers who keep their money in the bank
What does PROMOTE mean
To make widely known
What does PREFER mean
To like something better than another
What are some examples of economic choices you make when you wake up?
The pajamas were chosen to be purchased over others
There are many brands of milk, cereal and yogurt to choose from, for breakfast
Your mom chose the tooth brush and tooth paste that you use, from many different options in the store
All these goods cost money, and when money was spent to purchase these goods, economic choices were made
When consumers choose a producer’s product, the producer makes money, and they use the money to do things like hire and pay workers, who use their salary to buy more goods and services
What are some examples of scarcity?
In the dry dessert, there is a scarcity of water
When the economy is bad, there is a scarcity of jobs available
When Imagine Dragons come to Taipei to perform, there will be a scarcity of tickets available to buy
What is example of opportunity cost, from a recent choice you made to buy something?
Buying Fornite Battle Pass means you lose out on the opportunity to buy a Lego set
What are some incentives that might make you more interested to buy something?
When there is a sale and the price is lower
When you get something extra for buying a product (for example 2 for the price of 1)
When you can earn points to get discounts for future purchases
When you get a chance to win a prize if you purchase a product
What are some advertisements that you remember seeing? Why was it memorable, and what about the advertisement that make the product appeal to you?
Tell dad
What are some important incentives that might help you make a choice on your future job?
Amount of the salary
Location of the job
What product the company produces
Any special benefits
What can you do with the money you don’t spend? How can you make your savings grow?
Put it in a bank to earn interest
Invest in stocks or bonds
Create a business
Invest in products that will increase in value (for example Legos, a house, etc.)
There was high inflation over the past few months, where prices for many goods have increased.
However, people’s salaries did not increase.
What do you think will happen to demand for goods?
Demand will probably decrease, because people will spend more for the same goods vs. before inflation, so overall they will have less money to spend on their wants after they satisfy their needs.
