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SEM I 3.01 Notes
Objective: Explain economics and identify basic economic
resources.
Economics is the study _________________________________________
Resources include _________used in producing_____________________
.
Economic resources are ____________________________________that can be used
to produce the __________________that people consume.
_______________also known as a natural resource,
includes______________________________________________________.
Labor, _________________________________, includes all workers in the economy,
including ___________________________________________
____________________________________________________________.
Capital_______________________________________________, as well as goods
used in the production of other goods. _________________can be limited because they
deteriorate through use or are of poor quality.
For example, ________________________________________________.
Scarcity is _________________________________________________ ______than are
available. Scarcity forces _________________________ ____________________to
make choices. Unlimited wants with limited resources results in
_________________________.
Economic goods are ______________items.
Examples:_______________
________________ ________________
Economic services are _________________.
Examples: ________________ ________________ __________________
_______________________incorporates the skills of people who are willing to take
the___________________________________________________.
Entrepreneurs organize economic ____________________________
______________________and/or services _________________________in an
economy.
B. Describe the five economic utilities
.
Utility is _____________________________________________________________.
Five types of economic utility.
Form utility is the value added by ________________________________________
_______________more useful.
Examples:_____________________ _____________________ __________________
.
Place utility is the value added
by____________________________________________.
Examples: __________________ ____________________________ _______________
Time utility is the value __________________________________________________
or a convenient time of day.
Example:______________________________________________________________
.
Possession utility is the value added by
exchanging_____________________________ ______________
Example:_______________________________________________________________.
Information utility is the value added by
communicating___________________________.
Example: ______________________________________________________________.
C. Discuss the three basic economic questions and the role of the
government of each system.
The three basic economic questions are:
What ______________________________________should be produced?
_________________________________goods and services be produced?
________________________should the goods and services be produced?
In a market economy, there is ____________________________________________the
three basic economic questions; the market answers them.
Consumers decide what should be___________________________________.
Businesses decide how____________________________________________.
The people who have the money to purchase products___________________________
_____________________________.
.
In a __________________economy, the government answers the three basic economic
questions. The government officials or leaders decide what should be ______________.
The government runs the__________________________________________________.
The government also decides who will________________________________________.
In a traditional economy, the system is based on the
ways________________________. For example, the
__________________________and___________________________.
Mixed economies are ___________________________market systems, nor are they
completely controlled by________________________________________. They are a
mix, or blend, of the two. All economies presently are__________________________.
Capitalism. The people _________________________________________who
represent their constituents’ interests. For example, the United States and Japan.
Socialism. Although most socialist countries are_______________________, the
socialist economy has__________________________________________________.
The government tries to reduce the differences between the____________________.
The socialist model is based on the________________________________________.
Examples: _____________________ ___________________ _________________.
Communism. Communist countries have a government that is run by_______________
___________________________________________. People are assigned jobs.
______________________________are told what type of schooling they will receive.
Examples: _____________________ ___________________ _________________.
.
D. Explain supply and demand.
Supply is ___________________________________________________________and
sell at a ____________________________during a certain period of time. Producers
prefer to supply when the price is________________________; this is known as a
sellers’ market.
Demand is a consumer’s _____________________________________________at a
given price during a certain___________________________________. Consumers
prefer to buy when the price is_____________________; this is known as a
________________________market.
The Law of Supply and Demand is an ________________________________that
states the supply of a good or service will __________________________when demand
is ___________________________and ________________________ when demand
is__________________.
Elasticity is the degree to which demand______________________________________
__________________________________________________________________________.
Example: __________________________________________________________.
Demand__________________________________.
Elastic demand refers to how _________________________________________
_________________________________________________demand for that product.
Example: __________________________________________________________.
Inelastic demand refers to a condition in the market where ____________________
__________________________have very little affect on the ________for that product.
Example: __________________________________________________________.
Factors that affect the elasticity of demand
Availability of substitutes. If a substitute is_____________________________________
______________________________________________________________________.
Example: __________________________________________________________.
Example: __________________________________________________________.
Example: __________________________________________________________.
Brand loyalty. Many customers will only____________________________________.
In general, they will accept________________________________________________.
In this situation,_________________________________________________________.
Example: __________________________________________________________.
Example: __________________________________________________________.
Price relative to income.
When an __________________________________of a good or service does not have a
major __________________________________________, the demand is
usually______________________________.
When an __________________________of a good or service has a major impact on a
customer’s budget, the customer___________________________________________.
In this case, the demand__________________________________________________.
Example: __________________________________________________________.
Example: __________________________________________________________.
Luxury vs. necessity (want vs. need). When a product is a______________________
________________________________. When a product is a luxury, demand is most
likely to be elastic.
Example: __________________________________________________________.
Urgency of purchase. If a purchase must be made immediately, demand tends to be
_________________________.
Example: __________________________________________________________.
E. Phases of a business cycle and the impact of each on the sports and
entertainment industry.
The business cycle is the __________________________________through four
recurring phases –_____________________
__________________________
__________________________ _____________________________________..
Explain the phases of a business cycle.
I.________________________(Peak)
1.____________________________________
2. ____________________________________
3. ____________________________________
4. ____________________________________
5. ____________________________________
II. ____________________________________
1.____________________________________
2. ____________________________________
3. ____________________________________
4. ____________________________________
III. ____________________________________(Trough)
1.____________________________________
2. ____________________________________
3. ____________________________________
4. ____________________________________
IV.__________________________________________
1.____________________________________
2. ____________________________________
3. ____________________________________
4. ____________________________________
5. ________________________________________