 Have you ever wondered why:

Gas Prices Spike

Food Costs Rise

U.S. Politicians worry when other countries talk about going bankrupt
 You can’t get a good interest rate on your savings account

The study of the production & consumption of goods and the transfer of wealth to produce and obtain those goods
Economics explains how people interact within markets to get what they want or accomplish certain goals


Microeconomics

Focuses on the actions of individuals & industries, like the dynamics between buyers & sellers, borrowers & lenders
 Macroeconomics

Broader view by analyzing the economic activity of an entire country or the international marketplace

 A Shortage
 There is Scarcity because of society’s unlimited wants exceed the economy’s ability to meet these wants


Wants
 Different luxury car for each day of the week
 10-bedroom mansion
 4 oz. of Russian Caviar
 20-carat diamond ring
 Full Household staff
 Private Jet

Economy could not produce enough goods & services to meet all wants
 Not enough:
 Land
 Adult population
 Skilled workers to build
 Not enough food
List only limited to:
 Time
 Imagination
 Appetite

 The imbalance between wants & ability to meet those wants

Says there will never be enough to meet everyone’s wants

The set of arrangements that a society uses to allocate scarce goods
 Capitalism

Economic system that that the factors of production are privately owned & resource allocation decisions are made by private markets
 Socialism

Economic system that land & capital are owned by the state & the use of these resources is determined by the state


Research a topic for a current event that is taking place anywhere in the world

Topics include:

Scarcity
 Economic Systems

Capitalism

Socialism

Macroeconomics