Intro to

Economics
ECONOMIC BASICS

ECONOMIC SYSTEMS
Make a copy of
the Google Doc You will record all assignment work from
today on this page and submit it when you
posted in are finished.
Google
classroom.
 Would you
rather give up This is your “attendance” question and will be the
breakfast, lunch, first item on your Google Doc

or
dinner…forever?
 Today I will learn about the basics
of economy
So that I can describe the basic
components of economies and
LEA R NI NG TA RGE T! types of economies
I’ll know I have it when I can
complete the Google Doc
questions for the day.
CNN10

WATCH CNN10 WRITE DOWN TWO NEW PIECES EXPLAIN HOW ONE OF THEM
OF INFORMATION YOU LEARNED RELATES TO YOUR OWN LIFE.
TODAY
Vocab: Record the following definitions in
your notes
Economics- the study of how people meet their wants and needs
Entrepreneur- a person who starts a business and is willing to risk loss in order to make money
Factors of Production- the things needed for the creation of a good or service
Supply -the amount of a good or service that is available for use
Scarcity-having a limited quantity of resources
Producer- people or businesses that make and sell products
Opportunity cost- the cost of what you give up when you make a decision
Consumer -people or businesses that buy or consume products
Demand – the desire for a certain good or service
Notes!

As you progress
through the following Answer any questions
slides take notes on the from the slides in
fill in the blank section today’s Google Doc ☺
of your Google Doc.
 What goods and services should be
produced?

There are 3
Basic How should goods and services be
produced?
Economic
Questions
Who uses or consumes these goods?
The resources people use to make goods and services are called factors of
production.
Choice
. Choice is major component of the economy.
There is nothing to limit what people want, but there is a limit to what can be created. The
difference between what people want and what can be created is called scarcity.
Because people have limited time and money, they must make choices about what they will do
with their time and money. What people give up in exchange for doing or getting something else
is called opportunity cost. For example, if I get $10 for my birthday and I decide to spend it on
pizza. The opportunity cost is the other things I could have done with the money, buy ice cream,
buy a book, put it in savings for something bigger in the future.
In addition to choice, supply and
demand are also important
aspects of economics
Supply and demand are both connected to price.

As price of a product increases, people will buy less of it. If the price
of the product decreases, people will buy more of it, demand will
increase.

The price at which demand is equal to supply is the market-clearing

price.

Supply, demand, and overall choices have had great influences on

world events . For example, high demand for resources such as gold
or oil has led to exploration and colonization.
 TRADITIONAL MARKET COMMAND MIXED

Economic Systems:
There are 4 basic economic systems.
In each of these systems, the roles of individuals, business, and government will vary. Goals, incentives, and
regulation also vary
Traditional Economy
 Market
Economy
In a market economy, individual
consumers and producers make
the economic decisions.
This type of economy is also
known as capitalism
The economic freedom of a
market economy encourages
entrepreneurs to start new
businesses which creates job
opportunities.
Command Economy
Now answer the questions at
the bottom of your Google
Doc and submit it.
Have a great day☺.