The Story of Economy

SOL CE. 9a

Economy

The way a society chooses to use its resources to produce and

distribute goods and services for consumption.

What is a society?

A society is the way people work together to meet their needs and

wants.

Human Needs & Wants

Resources

Resources are the money, people, and materials available to

accomplish a community’s goal.

Supply/Demand

Supply – The amount of goods and services that producers are able and willing to sell at various

prices during a specified time period.

Demand – The desire, willingness, and ability to

buy a good or service

Scarcity

Scarcity – Not having enough resources to

produce all of the things we would

like to have.

Choice

Selecting an item or action from a

set of alternatives

Opportunity Cost

+ Looks

-dog breath

-No bling

-Allergic to work

-Will cheat on you in a heartbeat!

+ Ugly

-Drives nice car

-Lives in a beautiful mansion

-Enjoys life

-Will love you forever!

+ Looks

-Has false teeth

-Lives with parents

-Has contagious fungus on toenails

+ Ugly

-Owns a night club

-Lots of bling

-Has lots of friends

-Owns tropical island with a diamond mine!

Opportunity

Cost

What is given up when a choice is

made –the highest value forgone…what you give up to get the benefit YOU value most

Incentives

Incentives – Something that encourages or

motivates somebody to do

something.

Price

Price – The particular amount, usually of money, that is offered or asked for when

something is bought or sold

Has false teeth

-Lives with parents

-Has contagious fungus on toenails

dog breath

-No bling

-Allergic to work

-Will cheat on you in a heartbeat!

Owns a night club

-Lots of bling

-Has lots of friends

-Owns tropical island with a diamond mine!

Drives nice car

-Lives in a beautiful mansion

-Enjoys life

-Will love you forever!

What PRICE would you pay?

ECONOMYThe way a society uses its resources to produce and

distribute goods and services for consumption to meet the needs and wants

of its people!