Transcript Objective 1.02 - MrSpearsClasses

Objective 1.02
Role of an Individual
Consumer, Producer and Citizen
Roles as Consumer
• Individuals buy more than two-thirds of all
goods and services produced.
• Buying something is casting a dollar vote
• Dollar votes = Demand
Demand
• Quantity of a product or service that
consumers are willing and able to buy at a
particular price.
• Knowing demand = type and quantity of
products and services
Supply
• Quantity of a product or service that
businesses are willing and able to provide
at a particular price.
• Product or service will continue to be sold
at a price that can cover cost of operation
Supply and Demand
• Prices are determined after studies
• Demand affects price.
– More want = higher price
– Less want = lower price
• Supply affects price
– Cover operating costs and make profit
– Supplier must produce good product and
operate in an efficient means
Competition
• Keeps prices reasonable
• Businesses set prices to pay for operating
costs and to make profit.
• Competition keeps one company from
charging higher prices
Role as Producer
• Improving productivity can reduce
consumption of resources, increase
business profits, and enable the business
to pay its employees a higher wage and/or
reduce prices on its goods and services,
which may enhance the business’s
competitive edge.
Standard of Living
• A measure of how well people in a country
live; the quality and quantity of wants and
needs that are satisfied; it is the way you
live as measured by what you can afford;
determined by your choice of career.
Continued
• To improve standard of living is to produce
more
• Labor productivity
– Quantity of a good that an average worker
can produce in an hour
• Higher productivity has enabled U.S. to
achieve a standard of living among highest
in the world
Continued
Ask yourself:
• How might your career choice affect your
future standard of living?
• What kinds of cars represent different
standards of living among people?
• The car I desire will represent what kind of
standard of living?
Role as a Citizen
• Your Role As A Citizen In A Free
Enterprise System
– Voting
– Paying Taxes
– Obeying the Law
Continued
• Public goods are needed by community
and provided by government
• They provide a better quality of life
• Collective decision making
– Making decisions w/ other citizens on how to
use scare resources provided for everyone’s
use