1. The Last Word: Ch 3 Review due and Unit 1 Test - Wednesday

4. Chapter 3, Section 2

5.  Consumers are looking to get the best value of a good or service for their money  Producers as looking to make as much profit as possible  Profit - Money left over after paying for production costs  Revenue – Costs = Profit  Revenue- Money made from selling a good or service

6.  Allocate- to set aside or locate scarce resources  We allocate our money or set it aside to fulfill wants that we feel are most important. ▪ Gas, Bills, Food

7.  People allocate resources to places they know they will make money  Convenience Stores  They charge a reasonable yet higher price on their products  By convenience store X making profit, it will motivate Timmy to open his own store

8.  Resources are now being allocated (set aside) for convenience stores instead of another area  This creates competition and variety in the economy

9.  When you buy a product you are choosing it over another  This helps to influence what producers will make and provide

10.  What other trends have taken place in society where a new product causes companies to reallocate their resources into a new product?  How does a free enterprise system keep their from being to many conveniences stores in a market?

11.  Our Gov’t plays a limited role in regulating our economy  We call this modified free enterprise  Gov’t takes taxes from individuals, businesses, and provides services  ex. Military, Social Security, Roads Product/ Factor Markets provide resources for gov’t to use to operate Ex. Gov’t workers, computers, land