Economics - Seneca High School

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Transcript Economics - Seneca High School

It may be the most boring topic you
will ever discuss, but also the most
Economics defined
allocation of
limited resources to
satisfy unlimited
study of the total economy
 Inflation
 Unemployment
 Recession
with individual
decision making
Accounting (Record Keeping)
4 Factors of Production
 1)
Labor - physical talents
 2) Land - Natural Resources
 3) Capital - building, equipment,
machinery, money
 4) Entrepreneurship - “the brains”
Economic Terms that will make our
conversations easier in here
Good - “thing” that has value or may be
exchanged for a price
 2) Opportunity Cost - The value of the
alternative surrendered when a choice is
 3) Supply - the amount of a product that
producers are willing to sell in the market at
various condition
 4) Demand - the amount of a good that
people are actually willing and able to buy
given the prices and choices available.
 1)
Law of Supply
 The
Law of Supply states that when the
price of a product is lowered, with no
change in other factors, less of the product
will be supplied.
Factors that affect Supply?
Law of Demand
 The
Law of Demand states that when the price of
a product is increased with no change in other
factors, less product will be purchased.
Factors that affect demand?
Size of population affects demand.
 Tastes and preferences of consumers affects demand.
 Income and distribution of wealth affects demand.
 Relative prices of all goods and services affect demand.
Relationship between supply and
 A.
Price is found at equilibrium, where the
supply and demand curves intersect.
 B. If demand curve shifts right, the price
 C. If supply curve shifts left, the price
Relationship between enterprises
 Supplementary
enterprises are those where
one enterprise supplements the income of
1. A sports stadium is often used for concerts.
2. A lawn tractor can be used to move snow.
3. Making a corn maze.
Relationship between enterprises
 Complementary
enterprises are those
where one enterprise produces the inputs for
1. Soybeans used in rotation to leave nitrogen
for corn.
2. Tree trimming service may sell mulch.
Relationship between enterprises
 Competitive
enterprises are those where
one enterprise interferes with another.
1. Enterprises competing for labor resources.
2. Students who work so much that they do not
have enough time to study.
3. Corn and Soybeans