Economic Unit Dictionary List
l Consumers: Customers or People who will buy an economic good or service.
l (Major influence which affects purchasing choices and trends is ______?
l Resources: Available stocks or supplies on which we can draw to meet our needs and wants
l Producers: Sellers or people who produce an economic good or service
l Economy: The system that we as a society use to decide what to make and who gets what….represents a powerful force in our lives.
l Economics Explains people’s behaviors in the marketplace. It is the study of our efforts to satisfy our unlimited wants through the use of limited resources. It is the study, description, and analysis of the ways in which a society produces and distributes goods and services.
Goods - Products such as sugar, lumber or computer chips.
Services – Barber, musician, architect.
l Economics Cont…. affects business, finance, government and foreign policy, as well as what we have for dinner.
l The entire discipline of economics and all economic activity – arises from a scarcity of goods and services in comparison to human needs and wants.
l Scarcity requires choice. It means that people want more than is available. To an economist, something is scarce only if someone will buy it for a price.
l When there is scarcity, and choice, there are costs…..opportunity cost is something given up to obtain something else.
l Rationed: limited, in some manner
Two laws of Supply and Demand….
l For consumers: As the price or service rises, consumers will buy less of it. As the price of a good or service falls consumers will buy more of it…
l For Suppliers: As the price or service rises, suppliers will produce more of it. As the price of a good or service falls, suppliers will produce less of it.