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ECONOMIC TERMINOLOGIES

ECONOMIC TERMINOLOGIES. CIVICS CE.11A Mrs. Kozlik. SCARCITY. SCARCITY IS THE INABILITY TO SATISFY ALL THE WANTS AT THE SAME TIME. ALL RESOURCES AND GOODS ARE LIMITED. THIS REQUIRES THAT CHOICES BE MADE. RESOURCES. FACTORS OF PRODUCTION THAT ARE USED IN THE PRODUCTION OF GOODS AND SERVICES

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ECONOMIC TERMINOLOGIES

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  1. ECONOMIC TERMINOLOGIES • CIVICS • CE.11A • Mrs. Kozlik

  2. SCARCITY • SCARCITY IS THE INABILITY TO SATISFY ALL THE WANTS AT THE SAME TIME. • ALL RESOURCES AND GOODS ARE LIMITED. • THIS REQUIRES THAT CHOICES BE MADE.

  3. RESOURCES • FACTORS OF PRODUCTION THAT ARE USED IN THE PRODUCTION OF GOODS AND SERVICES • TYPES OF RESOURCES INCLUDE NATURAL, HUMAN, CAPITAL, AND ENTREPRENEURSHIP

  4. CHOICE • SELECTING AN ITEM OR ACTIONS FROM A SET OF POSSIBLE ALTERNATIVES • INDIVIDUALS MUST CHOOSE/MAKE DECISIONS ABOUT DESIRED GOODS AND SERVICES BECAUSE THE GOODS AND SERVICES ARE LIMITED

  5. OPPORTUNITY COST • IS WHAT IS GIVEN UP WHEN A CHOICE IS MADE. THE HIGHEST VALUED ALTERNATIVE • INDIVIDUALS MUST CONSIDER WHAT IS GIVEN UP WHEN MAKING A CHOICE.

  6. PRICE • PRICE IS THE AMOUNT OF MONEY EXCHANGED FOR A GOOD OR SERVICE. • PRICE DETERMINES WHO ACQUIRES GOODS AND SERVICES.

  7. INCENTIVES • THINGS THAT INCITE OR MOTIVATE US. • INCENTIVES ARE USED TO CHANGE ECONOMIC BEHAVIOR. • EXS: SALES • EXS: INTEREST RATES

  8. The amount of a good or service that producers are willing and able to sell at a certain price The amount of a good or service that consumers are willing and able to buy at a certain price SUPPLY DEMAND

  9. REVIEW SUPPLY AND DEMAND: • INTERACTION OF SUPPLY & DEMAND DETERMINES THE PRICE • IF THE SUPPLY (AMOUNT) OF A GOOD OR SERVICE IS HIGH AND THE DEMAND (WANT) IS LOW, PRICES WILL DROP • IF THE SUPPLY (AMOUNT) OF A GOOD OR SERVICE IS LOW AND THE DEMAND (WANT) IS HIGH, THEN PRICES WILL RISE

  10. PRODUCTION • COMBINING OF HUMAN, NATURAL, CAPITAL, AND ENTREPENEURSHIP RESOURCES TO MAKE GOODS OR PROVIDE SERVICES • RESOURCES AVAILABLE AND CONSUMER PREFERENCES DETERMINE WHAT IS PRODUCED

  11. CONSUMPTION • CONSUMPTION IS USING GOODS AND SERVICES. CONSUMER PREFERENCES AND PRICE DETERMINE WHAT IS BOUGHT.

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