o How does scarcity influence the decisions people make?

o What is the difference between a need and a want?

o How does Opportunity Cost and the Law of Scarcity effect decision making?

o Where do different economies fall on the economic spectrum?

o How does surplus and shortage influence price?o How does supply and demand

affect price in a market economy?o Why is economic interdependence an important concept in today’s world economy?

Economy: The interaction between producers and consumers

Economics:The social science that deals with making choices about our resources, including time and money.

Producer: Those who make or manufacture goods or services to sell.

ConsumerA person who buys or rents goods or services.

Production/Consumption Possibilities

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Get out pg. 465 questions

Economicsneedwantlaw of scarcityproducerconsumerfactors of productionsupply

demandlaw of supplylaw of demandpriceequilibrium pointsurplusshortageEconomic interdependence

Key Terms

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Open notebooks and date 12/08

If you want to start a business, what 3 questions do you have to ask yourself?

Why do you have to ask these questions?

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Open notebooks and date 12/09Copy the Economic Spectrum

Government Interference

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Capitalism(Free Market)

Communism(Command Economy)

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Open notebooks and date 12/10

1. What are the two types of economies?

2. Why does the government interfere in a market economy?