What is Economics
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Main Idea: Scarce resources affect everyone
and economists simplify the world to help us
understand it.
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Economics
Scarcity
Factors of production
Land
Labor
Goods
Services
Capital
Productivity
Entrepreneurship
technology
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How does what we want differ from what we
need?
Give an example:
How does this affect choices we make as
consumers?
How does scarcity affect us all?
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List and give a short description of the 4 factors
of production
a.
b.
c.
d.
Main Idea: The effects of our
economical choices are long lasting
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Trade-off
Opportunity cost
Production possibilities curve
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How can we relate trade offs and opportunity
costs?
How can we show society’s trade off in a
production possibilities curve?
Main Idea: Economists are social
scientists who study the ways
individuals and nations use their
resources.
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Microeconomics
Macroeconomics
Economy
Economic model
hypothesis
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How do economists use models (charts and
graphs) to study the real world?
Why do you think there are different types of
economic thought?
Main Idea: We have many choices as
consumers. Our choices make our
economy different from other
countries.
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Economic system
Traditional economy
Command economy
Market economy
Market
Circular flow of economic activity
Mixed economy
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What are the 3 questions that all economic
systems must answer?
a.
b.
c.
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What are the differences of the main economic
systems?
System:
1.
2.
3.
4.
Similarities
Differences
Main Idea: The American System is an
economy based on a free market. A Seller
can choose to make a product or not. A
consumer can choose which products they
want to buy.
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Capitalism
Laissez-faire
Free enterprise system
Profit
Profit incentive
Private property
competition
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What is the role of government in our free
enterprise system?
How do freedom of enterprise and freedom of
choice apply to the American Economy?
What roles do the following play in American
Economy?
A. Private property
B. Profit incentive
C. Competition
Main Idea: The US’ goals are evident
in the Constitution, government
policies, and actions of its people.
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Economic efficiency
Economic equity
Standard of living
Economic growth
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List and give a brief description of the major
goals of a market economy:
A
 B
 C
 D
 E
 F
 G
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How can Americans balance economic rights
with economic responsibilities?