Economic Essentials #1 What is economics?

Journal Describe the current state of the economy. –Would you say it is strong or weak? –What factors make an economy weak or strong?

Chapter 1 / Section 1 Objectives 1.To describe the relationship between scarcity and choice. 2.To identify productive resources, and list examples. 3.To define goods and services, and list examples. 4.To explain why goods and services are scarce.

Economics The study of the choices people make to satisfy wants and needs

Economics Is… The study of limited resources but unlimited wants, which forces people to make a CHOICE!The study of limited resources but unlimited wants, which forces people to make a CHOICE!

Make a list of 5 things you want!!!Make a list of 5 things you want!!!

List 5 things you need to survive. NEEDS:

What is the difference between a “Need” vs. a “Want”?

Scarcity The Economic Problem

SCARCITY Unlimited Wants

SCARCITY Limited Resources

Who decides what to make? Producers : –Makers of products –How do they decide what to produce? –Incentives: something that motivates –What is the producers main incentive?

Consumers : –Those who decide to buy things –How do they decide what to buy? –What is the main incentive for consumers?

Which one do you buy? 75 cents$1.25 WHY???

Types of Products Good – physical, tangible product – shirt, car, candy bar

Service – actions or activities – lawyer, movie, hair cut Which one do you spend more money on?

National Economies The U.S. is “consumer” society. China is a “producer” society. How might this affect our economy? Copy the bullet points AND question Respond to the question. This is your EXIT TICKET.