1 / 25

Economics Key Terms

Economics Key Terms. Economics . The study of how things are bought and sold. Microeconomics. Economic decisions that affect individuals in an economy. Macroeconomics. Economic decisions that affect the economy of a country. Micro or Macro Issues?. Pepsi introduces a new flavor of soda.

andreas
Download Presentation

Economics Key Terms

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economics Key Terms

  2. Economics • The study of how things are bought and sold.

  3. Microeconomics • Economic decisions that affect individuals in an economy.

  4. Macroeconomics • Economic decisions that affect the economy of a country.

  5. Micro or Macro Issues? • Pepsi introduces a new flavor of soda. • Russia prints more money causing inflation. • Red Cross needs more blood desperately. • Microsoft still tied up in legal battle. • Congress to tackle social security. • Walmart opens 100 new stores. • China tries to limit the amount of births. • Ford releases new version of the Mustang. • U.S. trade deficit widens.

  6. Scarcity • The fact that we have unlimited wants and limited resources (never enough).

  7. Opportunity Cost • What you must give up to obtain something else.

  8. Goods • Any item that can be bought or sold.

  9. Services • Any action for which a person is paid.

  10. Consumers • People who buy things.

  11. Producers • People who make and sell things.

  12. Capital Resources • Tools or equipment used to make goods and services.

  13. Human Resources • People working to make goods and provide services.

  14. Natural Resources • Materials found in nature that can be used to make goods or services.

  15. Opportunity Cost

  16. Goods and Services S S G S S S S S G S S G S G G G

  17. Economic Resources Coal Store Clerk Oven Cow Janitor Telephone Oil Carpenter Tractor Diamonds Artist Factory

  18. Economic Resources • Natural Resources • lemons, water, sugar, ice, wood • Human Resources • lemonade Seller • Capital Resources • cups, spoons, pitcher, chair, stand

  19. Supply • The number of items ready for sale.

  20. Demand • The number of people that want to buy something.

  21. Equilibrium Point • Condition where the price and quantity a seller wants matches the price and quantity a buyer wants.

  22. Surplus • When supply is greater than demand. (extra)

  23. Shortage • When demand is greater than supply. (not enough)

More Related