Transcript Economics - Seneca High School

Economics
It may be the most boring topic you
will ever discuss, but also the most
important.
Economics defined
The
allocation of
limited resources to
satisfy unlimited
wants.
Macroeconomics
The
study of the total economy
 GNP
 Inflation
 Unemployment
 Recession
Microeconomics
Concerned
with individual
decision making

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Budgeting
Lending
Accounting (Record Keeping)
Advertising
Marketing
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
made.
 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
demand
 A.
Price is found at equilibrium, where the
supply and demand curves intersect.
 B. If demand curve shifts right, the price
increases.
 C. If supply curve shifts left, the price
increases.
Relationship between enterprises
 Supplementary
enterprises are those where
one enterprise supplements the income of
another.
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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
another.
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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.
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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