The test will be matching, multiple choice, true/false, and short answer.
Boisvert: April 30 Bunn: April 29
Working understandings:
1.Definitions of economic words.
2.Human wants and needs differ depending on where you live.
3.Examples of entrepreneurs in our community, state, region
Essential Questions:
1.How might location impact supply and demand in an economy?
2.How might natural resources influence economic growth in an area?
3.Why might a person want or not want to be an entrepreneur?
Vocabulary:
Goods – a good is something people want that they can touch and hold. Example: Any item you can but at a store is a good.
Services – a service is something that one person does for someone else. Example: Washing a car, fixing a lawn mower, cutting hair, teaching students
Consumers –people who buy goods and services Example: When Sarah purchased a dress, she was a consumer.
Producers – people who make goods and provide services. Example: A mechanic is a producer of car repair services.
Productive Resources – the natural, human, and capital resources we need to produce goods and services. Example: Steel, plastic, different types of workers, and many kinds of tools and equipment are some of the productive resources necessary to produce a car.
Natural Resources – things found in nature that we use in production. Example: Oil, water, air minerals, wild animals, and land are examples of natural resources.
Human Resources – the people who work in jobs to produce goods and services. Example: Line workers, secretaries, managers, and engineers are examples of the human resources used to produce an automobile.
Capital Resources – special goods such as tools, equipment, machines, and buildings which are used to produce other goods and services. Example: The school building and all the equipment in it are capital resources needed to produce education.
Entrepreneur – people who take risks to start a business. They have to organize all of the productive resources to produce goods and services. Example: Henry Ford was an entrepreneur who used his personal savings to design a factory which produced automobiles on an assembly line.
Scarcity – not being able to have everything that we want. Scarcity forces us to make choices.
Money – money is what people use to buy goods and services. Example: Many different items have been used as money throughout history including gold, silver, shells, tobacco, and paper.
Price –amount of money that people pay when they buy a good or service. It is determined by the buying and selling decisions of consumers and producers. Example: Tabitha paid a price of $1.50 for the pack of gum.
Specialization – people specialize when they work in jobs where they produce a few special goods and services. When people specialize, they produce more but they also depend more on one another. Example: Jason is a mechanic. He gets his hair cut at Joe’s Barber Shop. Joe goes to Jason to get his car fixed. Jason and Joe earn more by specializing, but they must depend on one another.
Interdependence – occurs when people and nations depend on one another to provide the goods and services they want; more people specialize and trade – the more interdependent they become. Example: Canada and the United States are very interdependent because they trade so much with one another.
Profit – produce or sell a good or service, your profit is the difference between the money you make when you sell it and all your costs of production. Example: Beatrice received $200 from selling lemonade. She figured all her costs were $125. Her profit was $75.
International Trade – exchange of goods and services among people and institutions in different nations. Exports are domestic goods and services that are sold to buyers in other nations. Imports are goods and services that are bought from sellers in other nations.
Example: The United States imports coffee and exports wheat.
Role of Government – important roles of government in an economy are:
1)Provide laws to help the economy run smoothly
2)Make sure there is enough competition among businesses
3)Provide public goods, such as roads and national defense
4)Control bad effects of production (such as pollution and protect endangered resources)
The government gets money by collecting taxes.
Example: Enforcing business contracts through the legal system is an important role that government plays in the United States economy.