Economics Gorfien © 2009

Economics The study of how people make things to meet their needs and wants. The study of how people make things to meet their needs and wants. Gorfien © 2009

Limited Resources There are not enough goods to meet the demand. Gorfien © 2009

Scarcity The amount of resources can never satisfy human wants and needs. The amount of resources can never satisfy human wants and needs. Needs Wants Resources fuel minerals water wood Gorfien © 2009

Producer A person or business that supplies goods and services. A person or business that supplies goods and services. Gorfien © 2009

Consumer People and businesses that use goods and services to satisfy their needs and wants. People and businesses that use goods and services to satisfy their needs and wants. Gorfien © 2009

Types of Economic Systems Command Economic System The government determines what should be produced, how it should be produced and who should get it. The government determines what should be produced, how it should be produced and who should get it. Free Market Economy A type of economy where producers and consumers determine what should be produced, how it should be produced and who should get it. A type of economy where producers and consumers determine what should be produced, how it should be produced and who should get it. Gorfien © 2009

Profits The difference between the producer’s costs and the selling price. The difference between the producer’s costs and the selling price. Selling cost $ Producer’s costs $ Profit $ Gorfien © 2009

Agriculture Farms producing goods such as apples, grapes and dairy products. Farms producing goods such as apples, grapes and dairy products. Gorfien © 2009

Export To sell goods to a foreign country. To sell goods to a foreign country. Gorfien © 2009

Import To bring in goods from a foreign country. To bring in goods from a foreign country. Gorfien © 2009

Global Interdependence Countries depend on trade with other countries. Countries depend on trade with other countries. Gorfien © 2009