1. Economics Gorfien © 2009

2. 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

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

4. 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

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

6. 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

7. 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

8. 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 $520.00 Producer’s costs $400.00 Profit $120.00 Gorfien © 2009

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

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

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

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