Economic terminologies
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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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Economic terminologies

ECONOMIC TERMINOLOGIES

  • CIVICS

  • CE.11A

  • Mrs. Kozlik


Scarcity

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

RESOURCES

  • FACTORS OF PRODUCTION THAT ARE USED IN THE PRODUCTION OF GOODS AND SERVICES

  • TYPES OF RESOURCES INCLUDE NATURAL, HUMAN, CAPITAL, AND ENTREPRENEURSHIP


Choice

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


Opportunity cost

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.


Price

PRICE

  • PRICE IS THE AMOUNT OF MONEY EXCHANGED FOR A GOOD OR SERVICE.

  • PRICE DETERMINES WHO ACQUIRES GOODS AND SERVICES.


Incentives

INCENTIVES

  • THINGS THAT INCITE OR MOTIVATE US.

  • INCENTIVES ARE USED TO CHANGE ECONOMIC BEHAVIOR.

  • EXS: SALES

  • EXS: INTEREST RATES


Supply demand

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

SUPPLYDEMAND


Review supply and demand

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


Production

PRODUCTION

  • COMBINING OF HUMAN, NATURAL, CAPITAL, AND ENTREPENEURSHIP RESOURCES TO MAKE GOODS OR PROVIDE SERVICES

  • RESOURCES AVAILABLE AND CONSUMER PREFERENCES DETERMINE WHAT IS PRODUCED


Consumption

CONSUMPTION

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


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