Write your definition of economics on the index card provided. Write your name, date and hour on the top of your index card

Economics is a social science dealing with producing, distributing, & consuming goods & services.

Why is it important to us? Communities develop economic systems to meet their economic needs & wants. Basic NEEDS are FOOD, CLOTHING, & SHELTER. WANTS are things people would like to have to make their life easier—are almost UNLIMITED

Why is it important to us? WANTS are things people would like to have to make their life easier—are almost UNLIMITED

GOODS Physical items Examples: Food Houses Books Cars Ipods

SERVICES The work/activities people do for others for a fee Examples of people who perform services: Teachers Mechanics Hair stylist Doctor

SERVICES Which is the consumer and which is the producer in each picture?

Public Good/Service a Public Good/Service is a good that is non-rival. That means: consumption of the good by one individual does not reduce the amount of the good available for consumption by others. Private Good/Service a Private Good/Service is defined in economics as a good that exhibits these properties: Excludable- it is reasonably possible to prevent a class of consumers (e.g. those who have not paid for it) from consuming the good. Rivalrous- consumption by one consumer prevents simultaneous consumption by other consumers

PRODUCTION The act of PRODUCING People who make the products are known as PRODUCERS

DISTRIBUTION To divide among several or many

Consumer A person who satisfies a want or need by buying a good or service.

Did your definition of economics change after our lesson?. Write your “updated” definition of economics on the back of your index card