1. Economics
-Economics
-the system that society uses to produce and distribute goods and services
-Why study economics???
-Why does the government pay so much attention to the economy???

2. Wants and Needs -Wants are the things which people would like to have
-Needs are the things which people need to survive
-Goods
-things that can be made or manufactured
-Capital goods are the things used to manufacture other goods
-consumer goods are goods meant to be sold to consumers for use
-Services
-work that is done for someone for a certain price

3. Limited Availability
-Goods and Services are produced using resources
Natural Resources or Human Resources
-Scarcity
-the economic problems of limited goods and the unlimited wants of society in general
-Scarcity limits the availability of goods and services that people desire or need.
-This scarcity gives goods and services VALUE

4. Putting a Price on Things
-Price or VALUE is based on two basic factors
Supply and Demand
-Supply
-the amount of a good or service that is available for consumers to buy
-Demand
-the amount of a good or service that consumers are willing to buy

5. Determining Price
-Price is determined by comparing the amount of demand to the amount of supply and finding an amount where they are equal
-Market or Equilibrium Price
-this is the point at which supply and demand meet and price is determined

6. Effects of Price
-Shortages
-when demand is greater than supply
-What happens to price?
-Surplus
-When supply is greater than demand