Intro to Economics

What is "the economy"

• Money

• The stock market

• the wealth and resources of a country or region, especially in terms of the production (Creating) and consumption (using) of goods and services.

• Not having enough resources to produce all the goods and services people need and want.

What is an example of a GOOD?

• Cashier

• Teacher

• Phone

• Nurse

What is an example of a SERVICE?

• Phone

• Nurse

• Shoes

• Car

Food, Shelter and Water are all examples of _________?

• Wants

• Needs

Our WANTS and NEEDS are UNLIMITED, but our RESOURCES are LIMITED. In Economics, this is referred to as_________.

• Opportunity Cost

• Scarcity

• The economy

• Aggregate Demand

Scarcity leads to the need to make CHOICES. The Three main Choices (or QUESTIONS) are

• What to Produce?

• How to Produce?

• For Whom to Produce?

• How much should taxes be?

• How much should the government spend?

The United States Economy is an example of a

• Command Economy

• Market Economy

• Mixed Economy

In a Command Economy

• The government decides what, how, and for whom to produce products

• Individuals decide what, how and for whom to produce products

• Individuals make some decisions and the government is also involved

In a Market Economy

• The government decides what, how, and for whom to produce products

• Individuals decide what, how and for whom to produce products

• Individuals make some decisions and the government is also involved

"Land", "capitol", "labor", "Entrepreneurs" are all

• Opportunity Cost

• Factors of Production

• Mixed Economy

• Command Economy