ECONOMY AND ECONOMICS

WHEN WE THINK OF AN ECONOMY WE OFTEN THINK OF MONEY.

LOTS OF MONEY!!!!!!!

OR MAYBE WE THINK OF CREDIT CARDS!!!!!!

AN ECONOMY IS THE SYSTEM THAT PROVIDES OUR NEEDS AND WANTS.

WE HAVE FOUR BASIC NEEDS:

FOOD

CLOTHING

SHELTER

EDUCATION

AN ECONOMY PROVIDES THESE NEEDS!!!! WITHOUT THESE 4 NEEDS BEING MET OR SATISIFIED, WE WOULD NOT LIVE ANY LONGER. AN ECONOMY PROVIDES THESE NEEDS!!!!

AN ECONOMY ALSO SUPPLIES PEOPLES’ WANTS. AN ECONOMY MUST SUPPLY THE 4 BASIC NEEDS. AN ECONOMY ALSO SUPPLIES PEOPLES’ WANTS.

THE NUMBER OF WANTS BY CONSUMERS IN AN ECONOMY IS UNLIMITED.

HERE ARE SOME EXAMPLES OF “WANTS” IN AN ECONOMY.

IN AN ECONOMY THERE ARE PRODUCERS AND CONSUMERS.

PRODUCERS

PRODUCERS GROW OR MAKE THINGS THAT CONSUMERS NEED OR WANT. HERE ARE SOME EXAMPLES OF PRODUCERS GROWING OR MAKING THINGS.

A FARMER IN HIS CORN FIELD.

WORKERS PRODUCING A CAR

BIG SCREEN T.V.’S BEING BULIT

HOUSES BEING BUILT

BUILDING FURNITURE

ALL OF THESE ACTIVITIES ARE EXAMPLES OF PRODUCERS GROWING OR MAKING THINGS CONSUMERS NEED OR WANT.

CONSUMERS

CONSUMERS USE THE THINGS THAT ARE MADE BY PRODUCERS.

HERE ARE SOME EXAMPLES OF CONSUMERS’ ACTIVITIES.

PEOPLE EATING FOOD

PEOPLE USING CARS

FURNITURE STORES

PEOPLE BUYING CLOTHES

THESE AND MANY OTHER ACTIVITIES ARE DONE BY CONSUMERS IN AN ECONOMY.

MOST PEOPLE IN AN ECONOMY OR BOTH PRODUCERS AND CONSUMERS.

ONLY THE VERY YOUNG AND THE VERY OLD ARE NOT PRODUCERS ONLY THE VERY YOUNG AND THE VERY OLD ARE NOT PRODUCERS. EVERYONE ELSE IS BOTH A PRODUCER AND A CONSUMER.