How we get what we want...
4066 Basic Economics Note Taking Guide KEY
Modified from Georgia Agricultural Education
Leanne Brown
Terms
 business
 competition
 consumer
 free enterprise
 money
 price
 demand
 dividend
 economic system
 economics
 risk
 supply
What is economics?
 The study of how people get what they want
 Includes producing goods and services and getting them to people
 Governments have systems to care for people
 Work is required to produce and make money
 Includes supply, demand, prices & money
How does price effect economics?
 Price is the amount of money involved in buying and selling a good or
service
o worth of the item in money
What importance does money play in economics?
 Money is anything exchanged for goods or services
o currency is money used in a country
o the value of money is how much it will buy
o change in prices can cause change in the value of money
Explain the economic system.
 Economic system is how people go about going business
o how things are created, owned or exchanged
Different Economic Systems
 All countries have economic systems just modified in some way to meet
their particular needs
o capitalism versus communism
o major differences are based on property ownership and control
Explain free enterprise.
 Free enterprise the a way of doing business in the United States
o allows for business to work with minimum governmental control
o allows people to work and make money for themselves
o many people own property
Describe business ownership.
 A business is a person or group that produces and / or sells goods and
services
 People who own businesses take risks
o a risk is the possibility of losing what has been invested
o but you also can get benefits from a risk
 you can make money
What choices are available within free enterprise?
 You can chose what to produce, buy and sell
 You can set your price and be somewhat flexible
 Decisions require a lot of information
What kind of control issues are present in free enterprise?
 Few government controls
 You can run the business as you chose - but dishonesty is unacceptable
 Standards are imposed
o help keep food clean and measured
o people want a full portion of what they pay for
Who are consumers?
 Determine what business produce
 if consumers won’t but a product it won’t be produced
 A consumer is a person, business or agency that uses goods and services
 all consumers have limited money and must decide how it will be
spent
What is competition?
 Consumers will choose what they like best compared with it’s cost
 Competition allows consumers to choose between similar products
o
What is a dividend?
 Profit paid to a stockholder in a corporation
What is Supply and Demand?
 Supply is the amount of goods or services available
 Demand is the amount of product that will be sold at a given price