ECONOMIC TERMINOLOGIES

CIVICS

CE.11A

Mrs. Kozlik

SCARCITYSCARCITY IS THE INABILITY TO SATISFY ALL THE WANTS AT THE SAME TIME.

ALL RESOURCES AND GOODS ARE LIMITED.

THIS REQUIRES THAT CHOICES BE MADE.

RESOURCESFACTORS OF PRODUCTION THAT ARE USED IN THE PRODUCTION OF GOODS AND SERVICESTYPES OF RESOURCES INCLUDE NATURAL, HUMAN, CAPITAL, AND ENTREPRENEURSHIP

CHOICESELECTING AN ITEM OR ACTIONS FROM A SET OF POSSIBLE ALTERNATIVES

INDIVIDUALS MUST CHOOSE/MAKE DECISIONS ABOUT DESIRED GOODS AND SERVICES BECAUSE THE GOODS AND SERVICES ARE LIMITED

OPPORTUNITY COSTIS WHAT IS GIVEN UP WHEN A CHOICE IS MADE. THE HIGHEST VALUED ALTERNATIVE

INDIVIDUALS MUST CONSIDER WHAT IS GIVEN UP WHEN MAKING A CHOICE.

PRICEPRICE IS THE AMOUNT OF MONEY EXCHANGED FOR A GOOD OR SERVICE.

PRICE DETERMINES WHO ACQUIRES GOODS AND SERVICES.

INCENTIVESTHINGS THAT INCITE OR MOTIVATE US.

INCENTIVES ARE USED TO CHANGE ECONOMIC BEHAVIOR.

EXS: SALES

EXS: INTEREST RATES

SUPPLY DEMAND

The amount of a good or service that producers are willing and able to sell at a certain price

The amount of a good or service that consumers are willing and able to buy at a certain price

REVIEW SUPPLY AND DEMAND:INTERACTION OF SUPPLY & DEMAND DETERMINES THE PRICE

IF THE SUPPLY (AMOUNT) OF A GOOD OR SERVICE IS HIGH AND THE DEMAND (WANT) IS LOW, PRICES WILL DROP

IF THE SUPPLY (AMOUNT) OF A GOOD OR SERVICE IS LOW AND THE DEMAND (WANT) IS HIGH, THEN PRICES WILL RISE

PRODUCTIONCOMBINING OF HUMAN, NATURAL, CAPITAL, AND ENTREPENEURSHIP RESOURCES TO MAKE GOODS OR PROVIDE SERVICES

RESOURCES AVAILABLE AND CONSUMER PREFERENCES DETERMINE WHAT IS PRODUCED

CONSUMPTION

CONSUMPTION IS USING GOODS AND SERVICES. CONSUMER PREFERENCES AND PRICE DETERMINE WHAT IS BOUGHT.