Unit 4 Vocab
Section 4.1 Vocabulary:
Market:
A physical or digital location where goods or services can be traded.
Ex. Walmart, Amazon.com.
Fact 1: There is also a stock market.
Fact 2: Whenever you buy something you're signing a contract pretty much.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning markets.
2.0: In your own words (not the teacher's), define market.
3.0: What has to be true for interactions to happen in a market? (Helping question: What is the main function in a market?)
4.0: Compose a well-written paragraph using clarifying examples (give an example and then explain it) that demonstrates why money has become the key component of many trades.
Cost:
The willingness to give up resources to gain another resource
Ex:
Fact 1:
Fact 2: Again whenever you trade you're signing an invisible contract that you want the item.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning cost.
2.0: In your own words (not the teacher's), define cost.
3.0: What are resources you commonly give up other than money to gain another resource?
4.0: Describe 2 different goods or services you have recently purchased. List all of the costs associated with them. Give each individual item in your lists a personal (& realistic) value. Add up all your costs to determine a monetary value for acquiring those items. Looking back, was the good or services worth the final cost?
Opportunity Cost:
A single resource (good or service) is given up to get the best choice
YOUTUBE: https://www.youtube.com/watch?v=SA16Qw09bXM
Fact 1:
Fact 2:
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning opportunity costs.
2.0: In your own words (not the teacher's), define opportunity cost.
3.0: How would you rephrase the question: What is my first opportunity cost of the day? Answer your new question.
4.0: Think of a good that had a really hard opportunity cost (choice). Name the good you got and the opportunity cost. List all of the costs associated with them. Give each individual item in your lists a personal (& realistic) value. Add up all your costs to determine a monetary value for acquiring those items. Comparing the two, is their evidence to show that it was a heavy/hard opportunity cost?
Comparison Shopping:
Examining multiple similar products, taking note of similarities and differences, to decide which is the best
Ex: Comparing the prices, value, quantity, and quality of different pop brands
Fact 1: Comparison shopping doesn't just include comparing prices.
Fact 2: Comparison shopping includes looking at the features or how much bang you get for your buck.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning comparison shopping.
2.0: In your own words (not the teacher's), define comparison shopping.
3.0: What are some of the traits (4+) we use when we comparison shop?
4.0: Describe why $10 saved on a $20 item feels different than saving $10 on a $100 feels different.
Unit Price:
The price per unit of a good or service
Ex: In a three box pack of tissues, one box will cost $1.42 on its own
Fact 1: For most items, if you buy something in bulk you get a cheaper unit price.
Fact 2: People in Germany or countries in the European area, are unlikely to buy items in bulk due to no need for refrigeration.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning unit price.
2.0: In your own words (not the teacher's), define unit price.
3.0: Give four more examples of a "Unit" that is NOT in your notes.
4.0: Using www.samsclub.com, find 5 snack items and find the unit price for each one. Evaluate which choice you would make and give reasons why your snack would be the best purchase.
Thrift:
The wise use of economic resources, including one's time, talent and treasure.
Ex.
Fact 1:
Fact 2: Thrift is used in the TV show Extreme Couponing.
http://iquantifi.com/the-real-meaning-of-being-frugal/
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning thrift.
2.0: In your own words (not the teacher's), define thrift.
3.0: What is more important than taking, wasting and hoarding money? (3 answers)
4.0: Using the "Why Thrift Matters" document, choose three elements that you feel weak with. Describe individually how you can practice thrift within each element.
Charity:
The act of giving to organizations or those in need
i.e. Giving money to a charity that helps people who are homeless.
Fact 1: There are many charities that only donate 1% of the donations to their cause.
Fact 2: There are also some that donate almost 99.9% of the donations to their cause.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning charity (the verb).
2.0: In your own words (not the teacher's), define charity (the verb).
3.0: Why is it important to check places like CharityNavigator.org before you give?
4.0: Using CharityNavigator.org, find a Charity that donates less than 50% of donations. Research (google) that charity and write a paragraph summary of your findings. BE SPECIFIC and include facts, not opinions.
Section 4.2 Vocabulary:
Demand:
The willingness and ability to pay a specific price for a good or service
Ex:
EQ:
Fact 1: Demand goes down if price goes up.
Fact 2: if price goes down demand goes up.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning demand.
2.0: In your own words (not the teacher's), define demand.
3.0: Why would a producer want to lower the price for a product?
4.0: Research (google) how many households are in the US, how many households have an income of $60,000 and how many have an income of $100,000. With 2 proper sentences, give details on how this change affects demand.
Scarcity
Not enough to meet demand.
Ex. (Example Scenario) A boss demands 10 workers to make 20 toy cars in 10 min. But the workers only have 4 screwdrivers to screw on the 4 wheels. So screwdrivers were scarce.
Fact 1: To some people scarcity is how rare something is.
Fact 2: In economics scarcity is ubiquitous.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning scarcity.
2.0: In your own words (not the teacher's), define financial freedom.
3.0: What two qualifications would be needed for a Lamborghini to be considered scarce?
4.0: Name something that you think isn't scarce. Then, WATCH THIS. Were you right or not? Consider an example that was given in class. In a paragraph, describe how our classroom example is actually wrong when applying the actual (aka not simplified) understanding of scarcity.
Law of Demand:
When prices rise, the quantity demand decreases, or if you lower the price, the demand will rise.
Ex: The price of a remote dropped to $18. The store quickly sells out of remotes and no longer has any for sale.
Fact 1: The demand curve goes from the top left and down to the bottom right.
Fact 2: Price is on the y-axis while Quantity demanded is on the x-axis.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning the law of demand.
2.0: In your own words (not the teacher's), define the law of demand.
3.0: Rewrite and Complete the following two statements: 1) If the price is higher than expected, people will... 2) If the price if lower than expected, people will...
4.0: What common consumer good would have a demand curve that was incredibly steep? Give your reasoning.
Supply:
The amount of a good or service available to consumers
Ex: 12 remotes are available at a store
Fact 1: If the price goes up, supply goes up.
Fact 2: If the price goes down, supply goes down.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning supply.
2.0: In your own words (not the teacher's), define supply.
3.0: What would a profit-focused producer do with a warehouse full of goods?
4.0: WATCH THIS VIDEO. There are two references to supply (and demand) by Oaken and Kristoff around the 2-minute mark. Name each element that supply is referring to and describe the problem that exists for Oaken and the problem that exists for Kristoff.
Law of Supply:
When prices increases, the more of a good or service will be in the supply.
Ex: The price of a remote raises to $25. The quantity of remotes available is now 18.
EQ:
Fact 1: The supply curve goes from the top right to the origin or bottom left of the graph.
Fact 2: Where the supply and demand curves meet is where the perfect supply and demand is at.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning the law of supply.
2.0: In your own words (not the teacher's), define the law of supply.
3.0: What common household good would have a supply curve that would be almost flat?
4.0: Name a good or service. When considering the Law of Supply for your good or service, what would cause the supply curve to shift to the left? What would cause the supply cause to the right? (Feel free to research this - Youtube can be your friend!)
Budget
A spending and savings plan based on income and expenses where you tell every dollar where to go.
Ex. Emergency funds, savings account, and groceries is all a category that goes with your budget.
Fact 1: We learned this word in 6th grade.
Fact 2: Over two-thirds of Americans don't budget.
How far are you in your understanding? I can:
1.0: Write a factual statement (not definition) concerning budget.
2.0: In your own words (not the teacher's), define budget.
3.0: Give a 7th-grade example of budgeting $200 a month, including specific expenses.
4.0: Read this article. Choose the budgeting method that you like the best. Give a (new) example of what your budget might be using that method. Make sure to include ~some~ detail.