Economy of mi

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Economy of mi

  1. 1. Economy of Michigan<br />Book 2<br />
  2. 2. scarcity<br />Not enough of something so people have to make choices.<br />Example: You don’t have enough money for shoes and a video game, you have to choose 1.<br />
  3. 3. Limited resources<br />There are only certain amounts of resources.<br />Human, natural and capital.<br />We don’t have an unlimited supply.<br />
  4. 4. Unlimited wants<br />There is no end to the number of things people want and need.<br />We all want more than we have or get.<br />
  5. 5. Opportunity cost<br />When you make a choice, your opportunity cost is the thing you gave up.<br />You also really want the thing you give up.<br />
  6. 6. Incentive<br />Something used to get people to buy or produce a certain good or service.<br />Examples: Sales, rebates, prizes<br />
  7. 7. Economic activities<br />Different ways people use resources to produce goods and services<br />Examples: farming, mining<br />
  8. 8. Manufacturing <br />The making of goods in a factory<br />Example: making cars<br />
  9. 9. Agriculture <br />Another word for farming<br />Raising corn, wheat, soy beans, asparagus <br />
  10. 10. Tourism <br />An economic activity in which tourists visit an area and spend money<br />Tourism is an important economic activity in Michigan<br />
  11. 11. Tourist<br />A person who goes sightseeing and spends money in a place away from where he or she lives.<br />Tourists visit our State Parks<br />
  12. 12. Research and development<br />An economic activity where people produce ideas that lead to new or improved goods or services<br />Research and development businesses often are located near universities and colleges<br />
  13. 13.
  14. 14. Specialization <br />When an individual, region or country produces certain kinds of goods or services.<br />Cherries in MI<br />Asparagus in Oceana County<br />Specialization results in people producing fewer goods and services than they consume.<br />
  15. 15. Trade <br />To exchange one thing for another.<br />People trade money for goods or services<br />
  16. 16. Interdependence <br />When people are dependent on other people in order to get the things they do not produce.<br />When people specialize, they become more interdependent<br />
  17. 17. Export <br />A good that people in one place send out to people in another place when they trade<br />Cars are an important Michigan export<br />
  18. 18. Import <br />A good that people from one place bring in from another place when they trade<br />Bananas are a Michigan import<br />
  19. 19. Public goods and services<br />Goods and services that are provided by a government<br />Examples: State parks, state police, state highways<br />
  20. 20. Fees <br />Something people pay to a government for being able to do a certain activity<br />Camping fee at state park<br />Fishing license fee<br />Drivers license fee<br />
  21. 21. license<br />A legal document giving you permission to do something<br />Drivers license<br />
  22. 22. Fines <br />What people pay to the government for breaking a rule or law<br />Littering<br />Loitering<br />Speeding<br />Paying taxes late<br />
  23. 23. Taxes <br />What people pay to the government in exchange for services like public schools and road repair<br />Sales tax<br />Income tax<br />Property tax<br />

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