Unit 2 Economics in Louisiana

Unit 2Economics in

Louisiana

What is ECONOMICS?

Write your definition of economics on the index card provided.

Write your name, date and hour on the top of your index card

What is ECONOMICS?

Economics is a social science dealing with producing, distributing, & consuming goods

& services.

Why is it important to us?Communities develop economic systems to

meet their economic needs & wants.Basic NEEDS are FOOD, CLOTHING, &

SHELTER.WANTS are things people would like to have

to make their life easier—are almost UNLIMITED

Why is it important to us?WANTS are things people would like to have

to make their life easier—are almost UNLIMITED

GOODSPhysical items Examples:

FoodHousesBooksCarsIpods

SERVICESThe work/activities

people do for others for a fee

Examples of people who perform services:TeachersMechanicsHair stylistDoctor

SERVICESWhich is the

consumer and which is the producer in each picture?

a Public Good/Service is a good that is non-rival. That means: consumption of the good by one individual does not reduce the amount of the good available for consumption by others.

a Private Good/Service is defined in economics as a good that exhibits these properties:Excludable- it is reasonably possible to prevent a

class of consumers (e.g. those who have not paid for it) from consuming the good.

Rivalrous- consumption by one consumer prevents simultaneous consumption by other consumers

PRODUCTIONThe act of

PRODUCING

People who make the products are known as PRODUCERS

http://www.tabasco.com/popup/auth_audio_tour/

DISTRIBUTION

To divide among several or many

Consumer

A person who satisfies a want or need by buying a good or service.

What is ECONOMICS?

Did your definition of economics change after our lesson?.

Write your “updated” definition of economics on the back of

your index card