o How does scarcity influence the decisions people make? o What is the difference between a need and a want? o How does Opportunity Cost and the Law of Scarcity effect decision making? o Where do different economies fall on the economic spectrum?

o How does surplus and shortage influence price? o How does supply and demand affect price in a market economy? o Why is economic interdependence an important concept in today’s world economy?

Economy: The interaction between producers and consumers Economics: The social science that deals with making choices about our resources, including time and money. Producer: Those who make or manufacture goods or services to sell. Consumer A person who buys or rents goods or services.

Production/Consumption Possibilities

Bellwork Copy Key Terms Get out pg. 465 questions Economics need want law of scarcity producer consumer factors of production supply demand law of supply law of demand price equilibrium point surplus shortage Economic interdependence Key Terms

Bellwork Open notebooks and date 12/08 If you want to start a business, what 3 questions do you have to ask yourself? Why do you have to ask these questions?

Bellwork Open notebooks and date 12/09 Copy the Economic Spectrum Government Interference Less More Capitalism (Free Market) Communism (Command Economy)

Bellwork Open notebooks and date 12/10 1.What are the two types of economies? 2.Why does the government interfere in a market economy?