Unit 1-3 study guide Flashcards
Define natural resource
things in nature that people see as useful
Define capitol resource
things used to produce goods and services
Define unlimited wants
no end to what we want
define human resources
workers and their skills
define limited resources
there are only a certain amount of resources
define scarcity
not enough
define exchange
to trade
define specialization
when people produce some of the goods and services. They specialize in certain things.
define producer
someone who makes goods or provides services
define consumer
someone who buys goods or services
define opportunity cost
what you give up to have first choice
define economic activities
different ways people make goods/services
give an example of scarcity. How does it effect the consumer, how does it effect the producer?
The consumer needs to make choices, paying more or going with out. The producer could lose business.
give an example of specialization; why do we need it?
because of specialization people have to trade for the things that they don’t produce. Like glasses, when you need glasses – we don’t make the glasses so we must buy them. We can’t make everything we need.
name some questions that an economist would ask about Michigan?
what are its natural resources? How is Michigan part of national economy? Who receives what is produced?
