Economics

Supply and Demand, Economies, and

Economic Concepts

What is Economics?

• 1.

• 2.

Branches of Economics

• Microeconomics:

– Ex:

• Macroeconomics:

– Ex:

Economics Systems

• Definition:

• U.S.A. – Capitalism– Competition for profit– Minimum government interference

Supply

• Definition:

• Surplus:

Demand

• Definition:

• Deficit:

Price

• Definiton:

• Tax:

Need vs Want

• Need:

– Ex:

• Want:

– ex:

Problems

The issue:

• Resources:

• Scarcity:

Scarcity Diagram

Unlimited Wants

SCARCITY

Limited Resources

What toProduce?

How to Produce it?

For Whom?

Society Choices (These are

the 3 main questions asked in economics)

Costs & Revenue

• Types of Costs– 1.

– 2.

– 3.

Business Cycles

• 1.

• 2.

• 3.

• 4.

• 5.

Business Cycle Diagram

12

3

5

4

Types of Economies

• 1.

• 2.

• 3.

Laissez-Faire Economics

• Definition:

• Adam Smith

• “Invisible Hand”