EconomicsEconomics The study of how people The study of how people
make things to meet their make things to meet their needs and wants.needs and wants.
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Limited ResourcesLimited ResourcesThere are not enough goods There are not enough goods to meet the demand.to meet the demand.
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ScarcityScarcity The amount of resources The amount of resources can never satisfy human can never satisfy human wants and needs.wants and needs.
Needs
Wants
Resourcesfuel minerals
water wood
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ProducerProducer A person or business that A person or business that supplies goods and supplies goods and services.services.
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ConsumerConsumer People and businesses that People and businesses that use goods and services to use goods and services to satisfy their needs and satisfy their needs and wants.wants.
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Types of Economic SystemsTypes of Economic Systems
Command Command Economic Economic SystemSystem
The government The government determines what determines what should be produced, should be produced, how it should be how it should be produced and who produced and who should get it.should get it.
Free Market Free Market EconomyEconomy
A type of economy A type of economy
where producers and where producers and consumers determine consumers determine what should be what should be produced, how it produced, how it should be produced should be produced and who should get it.and who should get it.
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ProfitsProfits The difference between The difference between the producer’s costs and the producer’s costs and the selling price.the selling price.
Selling cost $520.00
Producer’s costs $400.00
Profit $120.00
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AgricultureAgriculture Farms producing goods Farms producing goods such as apples, grapes and such as apples, grapes and dairy products.dairy products.
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ImportImport To bring in goods from a To bring in goods from a foreign country.foreign country.
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