ECONOMIC ROLES Unit 2, Part 1 Chapter 3 2/25/2019 ECONOMIC ROLES Unit 2, Part 1 Identify three economic roles each person performs. Explain how consumers affect the supply and demand for goods and services. Understand the impact of worker productivity on our standard of living. Recognize the role of citizens in our economy.

ECONOMIC ROLES YOU PERFORM Chapter 3 2/25/2019 ECONOMIC ROLES YOU PERFORM Consumer Worker Citizen

YOUR CONSUMER ROLE Dollar votes help create demand Chapter 3 2/25/2019 YOUR CONSUMER ROLE Dollar votes help create demand Demand helps determine supply Demand and supply affect prices Competition helps keep: Prices reasonable Quality products

SUPPLY and DEMAND DEMAND – the quantity of a product or service that consumers are willing and able to buy at a particular price SUPPLY – the quantity of a product or service that businesses are willing and able to provide at a particular price

How Supply and Demand Affect Price A high demand for a product normally drives up the price A decreased demand will drive a price down Shortage of a product may drive up the price Surplus may drive the price down

YOUR WORKER ROLE Supports your standard of living Chapter 3 2/25/2019 YOUR WORKER ROLE Supports your standard of living Efficient producers – competition allows only efficient producers to survive in the market place

Your Standard of Living The way you live as measured by the kinds of goods and services you can afford Success as a worker will be the most important factor in determining your standard of living.

Your Standard of Living Improving our standard of living is done by producing more as workers Labor productivity – the quantity of a good that an average worker can produce in a given time.

YOUR CITIZEN ROLE Supports (helps provide) public goods – these are needed by a community and provided by the government As a citizen, we: Pay taxes to provide for public goods Vote

What are your three roles in our free enterprise system?

How do consumers affect the demand for supply of goods and services?

What is the importance of worker productivity on our standard of living?

What is the role of citizens in our economy?