what is an economy
Download
Skip this Video
Download Presentation
WHAT IS AN ECONOMY?

Loading in 2 Seconds...

play fullscreen
1 / 13

WHAT IS AN ECONOMY? - PowerPoint PPT Presentation


  • 65 Views
  • Uploaded on

WHAT IS AN ECONOMY?. Economy or Economic System. The way a nation makes choices. These choices involve how the nation will use its resources to produce and distribute goods and services. Resources. All things used in producing goods and services

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' WHAT IS AN ECONOMY?' - chance


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
economy or economic system
Economy or Economic System

The way a nation makes choices. These choices involve how the nation will use its resources to produce and distribute goods and services.

resources
Resources
  • All things used in producing goods and services
  • Factors of Production – the technical term economists use for resources
resource 1 land
Resource 1 – Land
  • Everything on the earth in its natural state / the earth’s natural resources
  • Resources Include:
    • Everything contained in the earth or found in the sea
    • Coal and crude oil are examples
    • A lake and all the living

things in the lake are

also examples

resource 2 labor
Resource 2 – Labor
  • All the people who work in the economy
  • Labor includes:
    • Full and Part-time Workers
    • Both the Public and the Private sector
resource 3 capital
Resource 3 - Capital
  • The money needed to start and operate a business
  • The goods used in the production process
  • Examples are:
    • Factories
    • Office Buildings
    • Computers
    • Raw materials that are processed

into a more useful form (lumber, steel)

resource 4 entrepreneurship
Resource 4 - Entrepreneurship
  • The skills of the people willing to risk their time and money to run a business
  • Entrepreneurs organize the other factors of production to create the goods and services desired in an economy
infrastructure
Infrastructure
  • The physical development of a country
  • Things necessary for production and distribution of goods and services
  • Parts of the infrastructure include
    • Roads
    • Ports
    • Sanitation Facilities
    • Utilities
scarcity
Scarcity

The difference between wants and needs and the resources available to meet these needs is called Scarcity.

Nations have unlimited wants and needs but limited resources – Scarcity forces the nations to make economic choices.

the basic economic questions
The Basic Economic Questions
  • Nations must answer 3 basic economic questions when deciding to use their limited resources
  • The way nations answer these questions define their economic system
    • What goods and services should be produced?
    • How should the goods and services be produced?
    • For whom should the goods and services be produced?
what should be produced
What Should Be Produced?
  • Consumers decide what is to be produced through purchases made in the market place.
  • Items that satisfy the customer’s needs and wants are purchased making the products successful
  • Items that do not satisfy the needs and wants of the consumer are not purchased and are not successful
how should goods and services be produced
How Should Goods and Services Be Produced?
  • How products will be produced is left up to the business
  • Businesses must be competitive
  • Businesses must produce quality products at lower prices than their competitors
  • Businesses must find the best way to produce goods and services
  • Businesses must also find the best way to encourage customers to purchase their products
for whom should goods and services be produced
For Whom Should Goods and Services Be Produced?
  • Those individuals with the most money are able to purchase more goods and services
  • To obtain money individuals work and invest
ad