Professional Documents
Culture Documents
Economic Concepts
Economic Concepts
❏ Economy deals with the use of resources which satisfy the NEEDS of
individuals and groups.
ECONOMIC CONCEPTS
❏ GOODS/PRODUCTS AND SERVICES
❏ FACTORS OF PRODUCTION
❏ ECONOMIC AGENTS
❏ SUPPLY AND DEMAND
❏ ECONOMIC SECTORS
❏ LABOR MARKET AND UNEMPLOYMENT
KEY WORDS
INCOME
SALARY
INVESTMENT
BUDGET
EXPENSES
GOODS AND SERVICES
FACTORS OF PRODUCTION
Factors of production are all the elements people need to produce something,
either a p_ _ _ _ _ _ or a s_ _ _ _ _ _.
Supply and demand shows how producers and consumers interact with each other.
● If the demand increases, and the supply remains the same, there will be a shortage, and the
price will increase.
● If the demand decreases, and the supply remains the same, there will be a surplus, and the
price will go down.
● If the supply increases, and the demand remains the same, there will be a surplus, and the
price will go down.
● If the supply decreases, and the demand remains the same, there will be a shortage, and
the price will increase.
ECONOMIC SECTORS: PRIMARY SECTOR
The primary sector comprises
businesses that produce or collect
natural resources.
retail sales
transportation
insurance companies
restaurants
tourism
entertainment
legal services,
health care,
unemployment benefit
unemployed to hire
employer to fire
1. Young people generally have less work experience, less knowledge about how to find a
job and fewer contacts to get jobs.
3. There is a mismatch of supply and demand between work and education level.
4. There is a high rate of school dropouts, which is the percentage of the population
between 18 and 24 years old who has not completed secondary education and who has
not taken part in any technical training.