Economics
The study of people producing and exchanging to get the goods and services that they want and need.
Goods
Physical products
Services
Products you can't touch (labor)
Production
A process that combines economic resources so the result is a good or service available for sale
Distribution
The process of getting a product or service to consumers
Comsumption
Using a product or service.
Natural resources, capital resources, Human Resources, and entrepreneurship
4 factors of production
Natural resources
Unaltered gifts of nature
Human resources
Physical and mental efforts people use to create goods with and services
Capital resources
Building tools or machines that people use to create goods and services
Entrepreneurship
The imagination, innovating thinking, and management skills needs to start and operate a business
Bill Gates, Jeff Bezos
Give an example of an entrepreneur
Scarcity
The result of an inability to satisfy all of everyone's wants. Often means that an inequality exists between wants and resources available.
Opportunity cost
The best alternative you give up when making a choice
Trade-off
A choice that involves giving up some of one thing to have more of another.
Economy
A system that results from the choices we make as consumers, workers, business owners or managers, and government officials.
Covid, monopolies, crime, terrorist, gas prices
What is an example of something that can effect the economy?
Microeconomics and Macroeconomics
2 types of economics
Macroeconomics
The study of the economy as a whole
Microeconomics
The study of economics at an individual group, business, or company level
1. What goods and services should be produced?2. How should these goods and services be produced?3. Who receives these goods and services?
3 basic economic questions
Market
An arrangement that allows buyers and sellers to make exchange with one another