Guided Notes-Economics

Consumer

- Anyone who or products.

Consumers determine prices.

Consumer economics

-The study of the role play in an system.

Adam Smith

-Described his idea of .

Competition

-Contest among sellers to win .

-Serve .

Entrepreneurship:

-Organizing productive resources to bring about the of new goods and services.

Economics

-The study of how systems work.

Production

-The creation of and .

The 4 basic resources:

1.

2.

3.

4.

Economic System

-The way a uses resources to produce goods & services.

Types of Economic Systems

economy

--Custom-based economy

The ways to produce products are passed from one to another.

economy.

-The owns most resources and makes most economic decisions (North Korea and Cuba)

economy

- own the resources and run the businesses.

economy

-The U.S. is not a pure market economy but a of some government control.

The Economy

* When a product or service is purchased, the buyer casts an in favor of continuing that product or service.

* Recession cause the (GDP) to decrease.

* is a general increase in the average level of prices in a nation’s economy. Prices are rising and the buying power of the dollar is falling.

* People who are jobless (not working), looking for jobs and available for work are considered .

Opportunity Cost

- The cost of a decision based on what must be as a result of that decision.

Gross Domestic Product (GDP):

- The current value of all and produced in a country in a year.

CPI- Consumer Price Index:

- Measures monthly changes of about 400 goods/services people regularly .

- Shows the or in retail consumer prices.

Unit Prices:

- A way to compare different sized of food or other consumable goods.

- (Ex. per ounce or per item)

Profit

-The difference between the cost required to create the and the received from selling it.

-Profit=Price (Revenue) - Cost

Scarcity

-When consumers’ wants are always greater than the available to satisfy those wants.