Unit 2 Mr. Eleuteri Introduction to Business

 Summarize the three types of economic resources, Examine resources and economic decisions.  Investigate the elements capitalism and the market economy.

 Demonstrate ability to categorize economic resources  Understand how capitalism and economic systems affect our society.  Define direct and indirect competition and determine how each affects business decisions.  Define and determine how supply and demand operates in a market economy.  Identify businesses or products affected by supply and demand.  Determine how market price is established given certain business situations.  Illustrate the demand and supply curves and market price.

 Home  Transportation  MedicineFood  Education  Other necessities

 Desires  Luxury Goods  Priced higher than needs

 Plumber  Electrician  Landscaper  Construction  Other

 Tangible item  Microwave oven  Television  Stereo  Other

 It is the basic economic problem.  All countries have this problem because of limited resources.

 the collective wealth of a country or its means of producing wealth.  Also known as factors of production- economic resources are the materials in which goods are from or how they are produced.

 Also known as labor  People are human resources

 Any resource from nature such as coal or minerals, fish, air or water  A country’s wealth is determined by its vast resources and ability to utilize them.

 Capital= Money

 These resources assist in the production of buildings or offices etc.  Equipment, furniture, computers etc. are capital resources