Econ Chapter 1 - Cherokee County Schools

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28 Οκτ 2013 (πριν από 3 χρόνια και 11 μήνες)

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Chapter 1



Section 1


Scarcity
-

Condition facing all societies because
there are not enough productive resources to
satisfy people’s wants.



Ex:
-

Water in deserts
. All the people want
water, but because it does not rain often and
the weather is very hot, water is
scarce

or
limited

to the demands of the people.


Productive Resources
-

Factors of production.
Because productive resources are scarce, good
and services are scarce too.



Ex
-

Milk
, if cows milk is contaminated, good
milk will be scarce. This will force you to make
a decision to either not drink milk, or find a
substitute like soy milk.


Economics
-

How people use their scarce
resources to satisfy unlimited demands.


Ex
-

You have to have
income to satisfy
your
wants. If you want a house, you must have a
job and be making money to buy the house.


Human Resources
-

Broad category of human
efforts both physical and mental.


Ex
-

You need a
doctor to conduct surgeries
,
which he uses physical and mental labor. He
has to use his
hands (physical)
and the
know
-
how (mental)
to perform the surgery.


Labor
-

Physical or mental labor to produce
goods or services. You sell your time to earn a
wage.


Entrepreneur
-

Someone who tries to earn a
profit by creating new products or improve
existing ones.


Ex
-
P
-
Diddy
. P
-
Diddy

has a clothing line (Sean
-
John) he is a producer (
Beiber

Fever), TV Show
(Making the band) and many other business
ventures.


Natural Resources
-

Gifts of nature. Land,
forests, water and animals are natural
resources.


Renewable Resource
-

Resources that can be
renewed. Ex
-

Trees, trees can be cut down and
replanted and grow back.


Non
-
renewable Resources
-

Resources that can’t
be reproduced. Once it’s gone, it’s gone.


Ex
-

Oil
. Once oil is gone, it is gone. There are
synthetic oils, but these are not “real” oil. This
is why many companies are trying to create
alternative fuels to help save on the use of oil.


Capital Goods
-

All human creations used to
produce goods or services.



Ex
-

Your
desks
. Without desks, students would
not have a place to sit and learn, there for,
desks are important to a school.


Good
-

A good is
tangible
. A tangible good is
something that can be
touched, seen and felt
.


Ex
-

Corn
. Corn, can be seen, purchased, tasted,
touched, smelled and eaten.


Service
-

Something that is in
-
tangible or not
touched, tasted, smelled or eaten.


Ex
-
Symphony
. You go and listen to it, but you
can’t touch a symphony, just maybe the people
playing in it.


Economic Theory
-

Economic reality that is used
to make predictions about the real world.


Ex
-
What will happen to Pepsi if the price goes
up? Some people will then drink Coke to find a
substitute.


Marginal
-

Increments, additional , extra or one
more.


Ex
-
Desert with Dinner
-

You want to eat it and
it will taste good, but there will be an extra
cost. There will be an extra cost of money to
your bill, there will be extra calories to your
diet. These are all additions which are
Marginal.


Market Economics or Microeconomics
-

Economic behavior or yourself and others.


Ex
-

Economics that directly effect you. If you
need gas for your car, you buy the gas. If you
are hungry, you buy food.


National Economics
or Macroeconomics
-

Economics that focus on the performance of the
economy as a whole.


Ex
-

Price increase in tires
-

The gulf oil spill had
millions of gallons of oil wasted. Less oil that is
produced forces prices to increase. Tires are
made from a byproduct of oil. Less oil, makes
oil prices higher and then the price of tires
increase.


Markets
-

Buyer and sellers carry out exchange.


Ex
-

Flea Market
. The flea market brings people
together at one place where goods can be
purchased and money is exchanged for good or
services.


Opportunity Cost
-

The value of the best
alternative you must pass up.


Ex
-

You want to go to a movie that costs $10. If
you go, then you can’t eat McDonalds with
your friends on Friday. If you don’t go to
McD’s
, you may miss out on something. But
you really want to see the movie. What do you
do?


Sunk Cost
-

Money that you have already spent
and can’t get back.


Ex
-

You paid to go to a movie, The movie is
awful and you decide to leave. You can’t get
your money back and don’t want to waste your
time, so you leave.


“No use crying over spilled milk!”