![Page 1: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/1.jpg)
Economics
![Page 2: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/2.jpg)
What is Economics?
Economics: the branch of social science that deals with the production and distribution and consumption of goods and services and their management
![Page 3: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/3.jpg)
What questions do economist ask?
What to produce? How to produce? For whom to produce?
![Page 4: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/4.jpg)
Scarcity
Scarcity: condition where human wants are greater than the available supply.
Time Goods Labor Capital Resources
Land & oil
![Page 5: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/5.jpg)
Price
What happens to price when items are scarce?
![Page 6: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/6.jpg)
Price
What happens to price when items are scarce?
![Page 7: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/7.jpg)
Production
the making of goods available for use – Resources are turned into goods & services
• Resources– Natural resources– Labor– capital
![Page 8: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/8.jpg)
distribution
the act or process of distributing the marketing of goods How does the consumer get the goods or
services?– Movement– Who decides?
![Page 9: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/9.jpg)
consumption
the act or process of consuming the amount consumed Satisfying our needs and wants by choosing
goods & services– consumer
![Page 10: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/10.jpg)
4 Types of Markets
Economic Markets Traditional Command Mixed Free (market economy)
![Page 11: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/11.jpg)
Traditional Economy
• Economic System that answers economic questions the way they have always been answered
– Primitive tribe– Ainu in Japan– Native Brazilians (rain forest)– Amish
![Page 12: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/12.jpg)
Traditional Economy
• Strengths• Minimizes problems
within society
• Weaknesses– Restricts
individuals– Lacks
advancements– Lacks new
technology– Lacks economic
growth
![Page 13: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/13.jpg)
Market Economy
• Economic is a system based on private ownership, free trade, competition
– Price is determined by supply & demand– Also known as
• Free Market• Capitalism
• Example: United States
![Page 14: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/14.jpg)
Market Economy
• Strengths– Freedom
• Buy & sell• Entrepreneurship• Advancements
– technology
![Page 15: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/15.jpg)
Command Economy
• Is a system in which the central government makes all economic decisions.
– Government answers these questions• What good to produce?• How much goods to produce?• What price will be charged?
– Examples:• North Korea & Cuba
![Page 16: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/16.jpg)
Command Economy
• Owns & controls most businesses• People do not have a say• Regulate the market
– Control• Production & Distribution of goods & services
![Page 17: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/17.jpg)
Mixed Market
• An economy that uses elements of both the command & market economic systems
– Example is China
• Includes – Government purchases– Employment– Taxation– Redistribution– regulation
![Page 18: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/18.jpg)
Market Economhy
![Page 19: Economics. What is Economics? Economics: the branch of social science that deals with the production and distribution and consumption of goods and services](https://reader036.vdocuments.mx/reader036/viewer/2022082600/5a4d1aeb7f8b9ab05997ad02/html5/thumbnails/19.jpg)