A Mini-Unit on Money and the Economy of the U.S. Economics A Mini-Unit on Money and the Economy of the U.S.

The Business of America How do the key political, social, and economic events of the 20th Century affect the U.S.? Assembly Line Production Amelia Earhart Calvin Coolidge Charles Lindbergh

Unit 7a: Economics Vocabulary

“Economics” defined… The system of trade, exchange, and finance that supports the management of resources in a community, country, etc., especially with a view to its productivity. 4 primary types of economies: Market Command Mixed Traditional

Free Market Economy Also known as capitalism or free enterprise Private ownership of property and resources (owned by individuals) Individuals and businesses make profits Individuals and businesses compete Economic decisions are determined by supply and demand Profit is a motivator for productivity No government involvement Consumer sovereignty: buyers determine what is produced

GOODS

Anything that can be grown or manufactured

SUPPLY

The degree of availability of an item

Producer

Someone who creates or manufactures a good or service through physical or mental effort

Services

Something that a person does for someone else in exchange for money or value

Consumer

A person who buys a good or service

Limited Resources

Items that are scarce in nature and cannot be renewed

Economics

The study of the production, distribution and the consumption of goods and services

Unlimited Resources

Materials that are endless and/or can be renewed

Demand

The amount of a good or service that consumers are willing and able to buy

Scarcity

A limited supply of resources in comparison to unlimited wants and needs

Market Price

The price that satisfies both producers for profit and consumers for value

Opportunity Cost

What you give up in order to get something

Microeconomics

The finance of people or families.

Macroeconomics

The finance of the world.