Economics• is the way peoplemake or use theirresources, goods, andservices• exchange of goodsand services in orderto satisfy our needsand wants
• ExchangeTo trade one thing for another.Example: I want to trade in mygreen disk for a blue one.• BarterThe exchange of goods or servicewithout money.Example: I’ll give you my cake foryour ice cream.
Needs vs. Wants• Needs – what peoplemust have to live.FoodClothingShelter• Wants – the things wewould like to have,but can live without.
Economic ChoiceYou make an economic choice when you only have moneyfor certain items, not all.Example:I do not have enough money for both popcorn and a pretzel. I mustchoose, so I buy the popcorn. That is my economic choice.YUM!
Opportunity CostOpportunity cost what you must give upwhen you make an economic choice.Example:I chose the popcorn, so I have to give up the pretzel.That is my opportunity cost.
Supply and Demand• Supply is the amountof a good or serviceavailable.• Demand is whatpeople are willing andable to buy.I would like to buy one candy cane, please.
Scarcity - Sometimes there is not enough ofsomething to go around. That item is scarce.Oh no! Ice cream is scarce!“I scream, you scream, we all screamfor ice cream! La, la, la, la, la!”The IceCreamSingers
What can I do with my money?• Spend it• Save it• Invest it Give people money to use tomake more moneys, like in stocksand bonds.