Info | Concept Definitions | Lesson Plans | Rules | Entry Form Economic Wants Specialization Opportunity Cost Goods and Services Producers and Consumers Human Resources
Economic Wants
Specialization
Opportunity Cost
Goods and Services
Producers and Consumers
Human Resources
Economic Wants Economic Wants are desires that can be satisfied by consuming a good, service, or leisure activity. Example: Consumers want goods such as clothes, cars, and jewelry, and services such as haircuts, trash pick-up, and medical care. Consumers also enjoy leisure time when they don't have to work.Goods and Services A good is an object people want that they can touch or hold. A service is an action that a person does for someone else. Examples: Goods are items you buy, such as food, clothing, toys, furniture, and toothpaste. Services are actions such as haircuts, medical check-ups, mail delivery, car repair, and teaching.Specialization People specialize when they produce only some of the goods and services they consume, then trade with others to get more of the things they want. Specialization increases the amount of goods and services that people produce and consume. Examples: Different community workers specialize in the jobs they do. People also specialize when they divide the labor on an assembly line or in an office.Producers and Consumers Producers are people who make goods and services. Example: A business such as an ice cream factory produces a variety of ice cream products for consumers to buy. Consumers are people who buy goods and services. Example: Mary is a consumer when she buys an ice cream cone at the Yummy Ice Cream Shop. Opportunity Cost When you make a decision, the most valuable alternative you give up is your Opportunity Cost. There is an opportunity cost to every decision. Example: Kanoa wants to purchase a basketball and a football. He only has enough money for one item. If he chooses the basketball, his opportunity cost is the football. Remember, the money you pay for a good or service is not your opportunity cost.Human Resources Human Resources are the people who work to produce goods and services.Example: Factory workers, teachers, bakers, managers, doctors, administrative assistants, farmers, nurses, firefighters, store clerks, etc.