1. The Story of Economy SOL CE. 9a

2. Economy The way a society chooses to use its resources to produce and distribute goods and services for consumption.

3. What is a society? A society is the way people work together to meet their needs and wants.

4. Human Needs & Wants

5. Resources Resources are the money, people, and materials available to accomplish a community’s goal.

6. Supply/Demand Supply – The amount of goods and services that producers are able and willing to sell at various prices during a specified time period. Demand – The desire, willingness, and ability to buy a good or service

7. Scarcity Scarcity – Not having enough resources to produce all of the things we would like to have.

8. Choice Selecting an item or action from a set of alternatives

9. Opportunity CostOpportunity Cost + Looks -dog breath -No bling -Allergic to work -Will cheat on you in a heartbeat! + Ugly -Drives nice car -Lives in a beautiful mansion -Enjoys life -Will love you forever! + Looks -Has false teeth -Lives with parents -Has contagious fungus on toenails + Ugly -Owns a night club -Lots of bling -Has lots of friends -Owns tropical island with a diamond mine!

10. Opportunity CostOpportunity Cost What is given up when a choice is made –the highest value forgone…what you give up to get the benefit YOU value most

11. Incentives Incentives – Something that encourages or motivates somebody to do something.

12. Price Price – The particular amount, usually of money, that is offered or asked for when something is bought or sold

13. Has false teeth -Lives with parents -Has contagious fungus on toenails dog breath -No bling -Allergic to work -Will cheat on you in a heartbeat! Owns a night club -L-Lots of bling -H-Has lots of friends -O-Owns tropical island with a diamond mine! Drives nice car -L-Lives in a beautiful mansion -E-Enjoys life -W-Will love you forever! What PRICE would you pay?

14. ECONOMY The way a society uses its resources to produce and distribute goods and services for consumption to meet the needs and wants of its people!