Economics!

If a resource is scarce

• there is a shortage and unlimited wants in a world of limited resources
• to be extremely rare and expensive

The study of how people make decisions given the resources that are provided to them.

• Economics
• Command Economy

The voluntary exchange of goods and services without any government intervention.

• Market Economy
• Traditional Economy

Produces a variety of goods and services, as well as supports new ideas, services and goods.

• Advantages of a Market Economy
• Advantages of Command Economy

My new Nikes were introduced in May for $129.99, but by December they are being sold for $69.99.  According to the law of supply and demand, which is most likely to be true about the Nikes.

• Supply for the Nikes are was hight but the demand was low.
• Supply for the Nikes was low but demand was high.

If a drought severely reduces the amount of asparagus available to consumers, what would you expect to happen?

• The demand for asparagus will go down.
• The price of asparagus will go up.

What type of economic system does the US have?

• Market
• Command
• Traditional 

Economic system where government controls everything.

• Market
• Command
• Mixed
• Free Enterprise

Economic System where there is limited technology and ideas are passed down from generation to generation

• Command
• Traditional
• Mixed
• Market

Type of Economy that is half command and half market

• Traditional
• Command
• Market 
• Mixed