1. Economic Essentials #1
What is economics?

2. Journal
Describe the current state of the economy. Would you say it is strong or weak? What factors make an economy weak or strong?

3. Economics
The study of the choices people make to satisfy wants and needs

4. What’s the difference? List 5 things you need to survive.
NEEDS:

5. Who decides what to make?
Producers:
Makers of products
How do they decide what to produce?
Incentives: something that motivates
What is the producers main incentive?

6. Consumers:
Those who decide to buy things
How do they decide what to buy?
What is the main incentive for consumers?

7. Which one do you buy?
75 cents
$1.25
WHY???

8. Types of Products Good shirt, car, candy bar
physical, tangible product
shirt, car, candy bar

9. Which one do you spend more money on?
Service
actions or activities
lawyer, movie, hair cut
Which one do you spend more money on?

10. How might this affect our economy?
National Economies
The U.S. is “consumer” society.
China is a “producer” society.
How might this affect our economy?