What is Economics? Part 2 Notes
B. RELATED TERMS
- Must define the following terms to fully understand the study of economics:
KEY ECONOMIC TERMS
1. “WANTS”
- “wants” - simply the desires or luxuries of citizens for happiness, comfort, pleasure or improvement of life style. (non-survival items)
2. “NEEDS”
– basic requirements of survival such as food, clothing, shelter.
3. “RESOURCES”
- “- anything used to make or obtain what a person, business, or government wants or needs. (ie. money, labor, ingredients, buildings, time)
TYPES OF RESOURCES There are four types of resources used in producing goods / services called the Four Factors of Production
FOUR FACTORS OF PRODUCTION
- Land – natural resources (coming from earth) such as the physical terrain, wind, water, fish, minerals, trees, soil, sun light.
FOUR FACTORS OF PRODUCTION
- Labor – human resources – workers
FOUR FACTORS OF PRODUCTION
- Capital – man-made resources used in the process of making a good or service. (machines, investment money, factory, tools)
FOUR FACTORS OF PRODUCTION
- Entrepreneurship – the act of starting new businesses, introducing new products, ideas, or technology with the ability to take risks.
** These 4 factors of production are what are considered when a party considers producing their good or service.
Q. Which of the four factors of production are each of the following?
- A. The wind that activates a windmill on a farm.
- B The copy machine in a printing company.
- C. The teachers at a public school.
- D. The water at a water park.
5. “CONSUMERS”
– those who are both willing and able to purchase goods and services in the market.
6. “PRODUCERS”
– those who are willing and able to manufacture and sell goods and services in the market.
7. “MARKET”
- economic atmosphere of buying and selling goods and services ranging in size from local to global.
Supply and Demand
These are the two "market forces
Supply - the amount of a product a producer is willing or able to produce at ANY price
Demand - the amount of a product a consumer is willing or able to buy at ANY price
Supply and Demand
Real World Example
Why is your Coffee so expensive today? Supply and demand forces at play!
End of Part 2 Notes
Now we handed it over to you. Please go to your Google Classroom and complete the following assignments: Supply and Demand Module
economics Unit 1 Notes
Kevin Magnani
Created on June 22, 2023
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Transcript
What is Economics? Part 2 Notes
B. RELATED TERMS
KEY ECONOMIC TERMS
1. “WANTS”
2. “NEEDS”
– basic requirements of survival such as food, clothing, shelter.
3. “RESOURCES”
TYPES OF RESOURCES There are four types of resources used in producing goods / services called the Four Factors of Production
FOUR FACTORS OF PRODUCTION
FOUR FACTORS OF PRODUCTION
FOUR FACTORS OF PRODUCTION
FOUR FACTORS OF PRODUCTION
** These 4 factors of production are what are considered when a party considers producing their good or service.
Q. Which of the four factors of production are each of the following?
5. “CONSUMERS”
– those who are both willing and able to purchase goods and services in the market.
6. “PRODUCERS”
– those who are willing and able to manufacture and sell goods and services in the market.
7. “MARKET”
- economic atmosphere of buying and selling goods and services ranging in size from local to global.
Supply and Demand
These are the two "market forces
Supply - the amount of a product a producer is willing or able to produce at ANY price
Demand - the amount of a product a consumer is willing or able to buy at ANY price
Supply and Demand
Real World Example
Why is your Coffee so expensive today? Supply and demand forces at play!
End of Part 2 Notes
Now we handed it over to you. Please go to your Google Classroom and complete the following assignments: Supply and Demand Module