Objective 1.02 Role of an Individual Consumer, Producer and Citizen

Roles as Consumer Individuals buy more than two-thirds of all goods and services produced. Buying something is casting a dollar vote Dollar votes = Demand

Demand Quantity of a product or service that consumers are willing and able to buy at a particular price. Knowing demand = type and quantity of products and services

Supply Quantity of a product or service that businesses are willing and able to provide at a particular price. Product or service will continue to be sold at a price that can cover cost of operation

Supply and Demand Prices are determined after studies Demand affects price. –More want = higher price –Less want = lower price Supply affects price –Cover operating costs and make profit –Supplier must produce good product and operate in an efficient means

Competition Keeps prices reasonable Businesses set prices to pay for operating costs and to make profit. Competition keeps one company from charging higher prices

Role as Producer Improving productivity can reduce consumption of resources, increase business profits, and enable the business to pay its employees a higher wage and/or reduce prices on its goods and services, which may enhance the business’s competitive edge.

Standard of Living A measure of how well people in a country live; the quality and quantity of wants and needs that are satisfied; it is the way you live as measured by what you can afford; determined by your choice of career.

Continued To improve standard of living is to produce more Labor productivity –Quantity of a good that an average worker can produce in an hour Higher productivity has enabled U.S. to achieve a standard of living among highest in the world

Continued Ask yourself: How might your career choice affect your future standard of living? What kinds of cars represent different standards of living among people? The car I desire will represent what kind of standard of living?

Role as a Citizen Your Role As A Citizen In A Free Enterprise System –Voting –Paying Taxes –Obeying the Law

Continued Public goods are needed by community and provided by government They provide a better quality of life Collective decision making –Making decisions w/ other citizens on how to use scare resources provided for everyone’s use