Economics vs Economy

Economics

• The Study of the Economy

• A System for distributing resources to satisy supply and demand

Economy

• The Study of the Economy

• A System for distributing resources to satisy supply and demand

Example of Economics

• 8th Grade Civics and Economics Class

• All Goods and Services Produced in the U.S.

Example of Economy

• 8th Grade Civics and Economics Class

• All Goods and Services Produced in the U.S.

Consumers are free to buy whatever product they want. Companies can make whatever product they want.

• Economy

• Market

• Economics

In a Market Economy, the consumer rules

• Scarcity

• Consumer Sovereignty

• Opportunity cost

What are the two driving forces in a free market?

• Supply

• Demand

• Scarcity

• Opportunity cost

Demand is

• Consumers / Buyers

• Producers / Sellers

Supply is

• Consumers / Buyers

• Producers / Sellers

Where demand meets supply - pick 2

• Opportunity Cost

• Equilbrium

• Price