1. Economy in the world

2. Definition of Economy Economy-The way that goods services are produced & distributed

3. Buying and Selling Producers- People who provide services & make goods people buy Consumers- People who buy goods or use services Economy is the all activities of producers and consumers Opportunity Cost- The value of the item you didn’t buy

4. Economics System Free enterprise system- People can own & run own businesses – America runs on this system Command economies- Gov’t will decide what will be produced & the price

5. Bell Work What type of economic system do we have?

6. Economics Systems Free enterprise system – America runs on this system – Entrepreneurs- People who run own businesses – Profits- Money business makes after pays for cost of business – Investments- Money that is put into a business to help it succeed

7. GDP Gross Domestic Product (GDP)- The cost of all goods & services added up in any country – U.S.A. in the trillions of dollars

8. Marketplaces Supply and Demand – Supply-The amount of any product or service available at any time. – Demand- How much of a product or service people want to buy Low supply=high price High supply=low price Low demand=low price High demand=high price

9. Bell Work What does Supply and Demand mean?

10. Local Economy Jobs and resources in the particular area Examples – Rural economy may be based on farming – Port economy may be based on fishing or tourism Manufacturing economies- Based on making products Service economy- Based on providing services Local economies are a mixture

11. Global Economy All countries need products and services from other countries Interdependent- Independent, but also rely on others Exports- When one country sends its products to another country Imports- When a country buys goods & bring them across the border Trading expands the nations

12. Homework Assignment I want you to think about 1 product you have used either today or that you use each day. I want you to decide & write who would be the producer of that product. I also want you to decide/write who the intended consumer would be and why they would be the consumer. This needs to be a ½ page long explanation