BASICS OF ECONOMICS WORDS TO KNOW ECONOMICS Study
BASICS OF ECONOMICS WORDS TO KNOW! � � ECONOMICS � Study that deals with the making, delivering, and using of goods and services.
BASICS OF ECONOMICS � WORDS TO KNOW! � Good (Product) �A thing produced by labor Shoes Food � Service � The act of providing a helpful activity House keeping
BASICS OF ECONOMICS WORDS TO KNOW! � Trade � The act of buying and selling a good (product) or service � Barter � To exchange a good (product) or service instead of currency (money)
BASICS OF ECONOMICS WORDS TO KNOW! � � Supply and Demand � The amount of a product or service available AND the desire of buyers to buy the product or service
BASICS OF ECONOMICS � How it works � � All prices are driven by supply and demand…and YOU are a big part of it! The question is…What are you willing to pay for something? ?
BASICS OF ECONOMICS � When there is a really low supply, but a lot of people want it (shortage), Demand Supply � the prices are going to go higher.
BASICS OF ECONOMY � When there is a LOT of supply, but only a little demand (surplus), Supply Demand � the prices are going to go lower.
BASICS OF ECONOMY � When supply and demand are equal (equilibrium), Supply � Demand both sides get a fair price.
BASICS OF ECONOMICS � The Bottom Line! � Price follows demand! � Demand is high, prices are higher � Demand is low, prices are lower
- Slides: 11