Economics

By:Ms. Worth’s

6th GradeClass

Economics• Economics- The

study of how people use their limited resources in an attempt to satisfy unlimited wants.

ProducerA producer is a person

who creates economicvalue or produces goods or services.

Examples:Services: Teacher, Policeman,

Waitress, NurseGoods: Cars, gloves, shoes,

pencils, PopTarts

www.wackypackages.org

A consumer is someone who buys goods or services.

Example:

My mother was a consumer at the shopping mall.

An example of factors influencing supply and demand is where a store would not be selling winter clothes when it is summertime, instead, the store would be selling swimming suites, shorts, and t-shirts.

Stores would NOT be selling hats and scarves

In the summer time

Another example of factors influencing supply and demand is: Say the housing market is low. Furniture will not be needed for new houses. Therefore, furniture manufacturers will stop making new furniture, and people lose jobs.

If the housing market’s low, furniture will not be needed

Couch manufacturers will not be needing to make new

furniture, so people will lose their jobs.

Something you have to pay for a good or service. This is not to be confused with

opportunity cost, which will be discussed later!

Supply: How much you have of something. Demand: the ability and desire to purchase goods and services at a given price.

Supply and Demand

Demand• In summer ice cream is in great

demand.

Supply

Ice cream is in great supply

in the summer

Benefit

Something that satisfies your wants.

Ex: I went to the mall and benefited by buying a new

dress.

Opportunity CostOpportunity Cost will

always be your second choice.

Ex: In order of desire, I wanted a skirt, dress, and boots. I only had money for one, so I bought the skirt. My opportunity cost was the dress.

Another example Another example of opportunity of opportunity cost is where you cost is where you have to give up have to give up one fun thing to one fun thing to do another, like do another, like when you have when you have two things two things planned at the planned at the same time like same time like bowling and bowling and going to a movie, going to a movie, you would have you would have to give up one to to give up one to do the other.do the other.

You would have to give up bowling to got to a movie

OR

You would have to give up the movie to go bowling

Saving

• Saving, sums of money saved.

• Any income that is not spent. In an economic sense, savings include purchases of shares or other financial securities.

• http://www.economist.com/research/Economics/alphabetic.cfm?letter=S#savings

Borrowing

• Borrowing- Something you take but give back.

• http://www.bizonline-content.com/bizresourceonline/images/articleimages/sb_borrowing.jpg

Definition

• Definition of investor (noun)

• form plural: investors

• 1 : to commit (money) in order to earn a financial return

• • 2 : to make use of for future benefits

or advantages

Example Sentences

• They were deeply invested in the GPS company.

• She invested her money in the stock market.

Definition

• Scarcity-a limited quantity of a resource.– Resources are human, capital (man-

made), and natural.

• rainforests• Cheetahs • oil• coal• time

• We have a scarcity of cheetahs, rainforests, oil, and coal on this planet.

• My time is scarce.

Examples of Scarcity

We hope you become wise economists!