scarcity Not enough of something so people have to make choices. Example: You don’t have enough money for shoes and a video game, you have to choose 1.
Limited resources There are only certain amounts of resources. Human, natural and capital. We don’t have an unlimited supply.
Unlimited wants There is no end to the number of things people want and need. We all want more than we have or get.
Opportunity cost When you make a choice, your opportunity cost is the thing you gave up. You also really want the thing you give up.
Incentive Something used to get people to buy or produce a certain good or service. Examples: Sales, rebates, prizes
Economic activities Different ways people use resources to produce goods and services Examples: farming, mining
Manufacturing The making of goods in a factory Example: making cars
Agriculture Another word for farming Raising corn, wheat, soy beans, asparagus
Tourism An economic activity in which tourists visit an area and spend money Tourism is an important economic activity in Michigan
Tourist A person who goes sightseeing and spends money in a place away from where he or she lives. Tourists visit our State Parks
Research and development An economic activity where people produce ideas that lead to new or improved goods or services Research and development businesses often are located near universities and colleges
Specialization When an individual, region or country produces certain kinds of goods or services. Cherries in MI Asparagus in Oceana County Specialization results in people producing fewer goods and services than they consume.
Trade To exchange one thing for another. People trade money for goods or services
Interdependence When people are dependent on other people in order to get the things they do not produce. When people specialize, they become more interdependent
Export A good that people in one place send out to people in another place when they trade Cars are an important Michigan export
Import A good that people from one place bring in from another place when they trade Bananas are a Michigan import
Public goods and services Goods and services that are provided by a government Examples: State parks, state police, state highways
Fees Something people pay to a government for being able to do a certain activity Camping fee at state park Fishing license fee Drivers license fee
license A legal document giving you permission to do something Drivers license
Fines What people pay to the government for breaking a rule or law Littering Loitering Speeding Paying taxes late
Taxes What people pay to the government in exchange for services like public schools and road repair Sales tax Income tax Property tax