1. Economics- the study of how people in a society make a living Economist- a person who studies economic choices

2. The Basic Questions All Economic Systems Address What is produced? (production) For whom? (distribution) How many? (consumption) How are goods produced?

3. 2 Groups of Economic Decision Makers 1.Consumers- people who buy and use products 2. Producers- people who make things that satisfy consumers’ needs and wants Consumers choose what to buy, and Producers choose what to provide. This network is the basis of ALL ECONOMIC SYSTEMS.

4. How Do You Make Decisions? Based on Needs and Wants Needs: Food Clothing Shelter Wants: IPod Cell phone TV

5. Decisions Also Focus on Goods and Services Goods: physical objects that can be purchased Services: actions performed for a fee The term Product refers to both.