The Story of Economy

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The Story of Economy

• SOL CE. 9a

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Economy

• The way a society chooses to use its resources to
  produce and distribute goods and services for
  consumption.

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What is a society?
A society is the way people work together to meet
their needs and wants.
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Human Needs Wants
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Resources
Resources are the money, people, and materials
available to accomplish a communitys goal.
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Supply/Demand
Supply The amount of goods and services that
producers are able and willing to sell at various
prices during a specified time period. Demand
The desire, willingness, and ability to buy a
good or service
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Scarcity
Scarcity Not having enough resources to produce
all of the things we would like to have.
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Choice
Selecting an item or action from a set of
alternatives
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Opportunity Cost

• Ugly
• Drives nice car
• Lives in a beautiful mansion
• Enjoys life
• Will love you forever!

• Ugly
• Owns a night club
• Lots of bling
• Has lots of friends
• Owns tropical island with a diamond mine!

• Looks
• dog breath
• No bling
• Allergic to work
• Will cheat on you in a heartbeat!

• Looks
• Has false teeth
• Lives with parents
• Has contagious fungus on toenails

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Opportunity Cost
What is given up when a choice is made the
highest value forgonewhat you give up to get the
benefit YOU value most
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Incentives
Incentives Something that encourages or
motivates somebody to do something.
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Price
Price The particular amount, usually of money,
that is offered or asked for when something is
bought or sold
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• Drives nice car
• Lives in a beautiful mansion
• Enjoys life
• Will love you forever!

• dog breath
• No bling
• Allergic to work
• Will cheat on you in a heartbeat!

• Has false teeth
• Lives with parents
• Has contagious fungus on toenails

• Owns a night club
• Lots of bling
• Has lots of friends
• Owns tropical island with a diamond mine!

What PRICE would you pay?
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ECONOMY The way a society uses its resources to
produce and distribute goods and services for
consumption to meet the needs and wants of its
people!