Michigan Economics Flashcards

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Economics is _______________________.

Economics is the study of how people use resources to produce goods and services that people want and need.


What are the 3 different resources needed to make a product?

Natural, human and capital resources.


What are natural resources? Provide 2-3 examples.

Natural resources are gifts from nature that people use.

Examples: water, wind, sun, plants, soil, coal, copper, salt, etc.


What are human resources? Provide 2-3 examples.

Human resources are the people who work.

Examples: teachers, police, store clerk, factory worker, etc.


What are capital resources? Provide 2-3 examples.

Capital resources are made by people and are used by people to make goods or provide services.

Examples: factory, tools, machines, cash register, tables, etc.


People have ______________________, but we can't have it all because of ______________________.

People have unlimited wants, but we can't have it all because of limited resources.


What is scarcity?

Scarcity is when the demand for something is greater than the supply.


What is an opportunity cost? Provide an example.

When you make a choice, your opportunity cost is your second choice. It is the next best choice.

Example: If you decide to order the blue hot lunch instead of the the white hot lunch, the white hot lunch choice is your opportunity cost.


What are incentives?

Incentives are special deals people use to get you to buy or produce a certain good or service. Incentives affect choices that people make.


What are some of Michigan's important economic activities?

Manufacturing, agriculture, logging, mining, and tourism.


Name 2-3 agricultural products from Michigan.

Examples include: dairy products, Christmas trees, corn, apples, celery, beans, cherries, grapes, blueberries, peaches and soybeans.


Name 2-3 manufactured products from Michigan.

Examples include: cars, cereal, baby food, medicines, chemicals, metal products, paper and appliances.


How does tourism help our state's economy?

Tourists visit our state and pay money for lodging, food, attractions and more!


What is specialization?

Specialization is when people or places produce certain kinds of goods or services.


What is interdepndence?

Interdependence is when people are dependent on other people in order to get the things they do not produce.


Why do people, states and countries specialize?

People, states and countries do not have enough resources to produce everything they need, so they specialize. Due to this specialization people, states and countries depend on others to get what they do not have through trade.


What are imports and exports?

Imports are goods that we bring IN to our state.

Exports are goods that we bring OUT of our state. These are goods that EXIT our state.


Who are Michigan's top trading partners?

Canada, Mexico, China and Japan.


What are public goods and services? Name an example.

Public goods and services are produced and provided by the government.

Examples: parks, libraries, snow removal, schools, police, street lights, etc.


What is an entrepreneur?

An entrepreneur is a person who combines natural, human and capital resources to come up with a new product or start a new business.