Economics Supply and Demand, Economies, and Economic Concepts

What is Economics? 1. 2.

Branches of Economics Microeconomics: –Ex: Macroeconomics: –Ex:

Economics Systems Definition: U.S.A. – Capitalism –Competition for profit –Minimum government interference

Supply Definition: Surplus:

Demand Definition: Deficit:

Price Definiton: Tax:

Need vs Want Need: –Ex: Want: –ex:

Problems The issue: Resources: Scarcity:

Scarcity Diagram Unlimited Wants SCARCITY Limited Resources What to Produce? How to Produce it? For Whom? Society Choices (These are the 3 main questions asked in economics)

Costs & Revenue Types of Costs –1. –2. –3.

Business Cycles

Business Cycle Diagram

Types of Economies

Laissez-Faire Economics Definition: Adam Smith “Invisible Hand”