UNIT 1: Supply & Demand

January 12th, 2016

Demand- the quantities that people are willing and able to buy at various prices.

Law of Demand- there is an inverse relationship between price and quantity demanded.

These are what causes a change in demand:

This is what a shift in supply looks like.

Supply: quantities producers/ sellers are willing & able to produce in various prices.

Law of Supply: states that there is a direct relationship between price and quantity supply.

These are what causes shifts in supply:

This is what a shift in supply looks like.

Heyyyyy, so for a practice round before the big test take a practice review on Production Possibilites Graphs here:

Production Possibilities Practice Quiz - ProProfs Quiz

GOOD LUCK (:

UNIT 1: January 7th, 2016

Production Possibility Graphs (PPG)- 

• shows the alternative ways to use an economy's resources.
• Production Possibility Frontier (PPF) & Productions Possibility Curve (PPC)

• Efficiency- using resources wise to maximize production of goods and services.
• Productive Efficiency- products produced in the least costly way; any point ON the PPC.

Underutilization- using fewer resources than an economy is capable of using.

• 

UNIT 1: January 6th, 2016

4 Factors of Production-

1. Land (Natural Resources)
2. Labor (Work Force)
3. Capital (Human/ Physical)
4. Entrepreneurship (Innovative/ Risk Taker)

Factor of Production-

resources required to produce goods/ services

Physical Capital-

tools, machinery, factory, robots

Human Capital-

knowledge, skills, abilities, talents gained through education an work experience.

Trade Offs- 

Alternatives we give up when we choose one course of action over another.

example: choosing cereal over waffles

Opportunity Cost- 

the next best alternative (Settling)

example: Asking the waitress for water, when she tells you there's no water you ask for sweet tea, when there's no sweet tea you ask for Coca Cola and finally receive it.

UNIT 1 : January 5th, 2016

Macroeconomics-

•  study of economy as a whole inflation
• wages
• international trade

VS.

Microeconomics-

• study of individual specific units of the economy
• supply and demand
• market structures
• business organizations

Positive Economics-

• attempts to describe the world as is
• very descriptive
• tends to thrive on the "what is"
• collects/ presents facts only

VS.

Normative Economics-

• attempts to prescribe how the world should be.
• opinion based
• "ought to be" "should be"

Needs-

• basic requirements for survival
• food, water, shelter, clothing

VS.

Wants-

• desires of citizens

Goods-

• tangible commodities
• Capital Goods: items used in creation of other goods
• Consumer Goods: Goods intended for final use by the consumer

VS.

Services-

• work preformed for someone
• examples: concerts, beauty shops