Unit 2Mr. Eleuteri

Introduction to Business

Summarize the three types of economic resources, Examine resources and economic decisions.

Investigate the elements capitalism

and the market economy.

Demonstrate ability to categorize economic resources Understand how capitalism and economic systems affect

our society. Define direct and indirect competition and determine how

each affects business decisions. Define and determine how supply and demand operates

in a market economy. Identify businesses or products affected by supply and

demand. Determine how market price is established given certain

business situations. Illustrate the demand and supply curves and market

price.

Home Transportation MedicineFood Education Other necessities

Desires Luxury Goods Priced higher than needs

Plumber Electrician Landscaper Construction Other

Tangible item Microwave oven Television Stereo Other

It is the basic economic problem. All countries have this problem because

of limited resources.

the collective wealth of a country or its means of producing wealth.

Also known as factors of production- economic resources are the materials in which goods are from or how they are produced.

Also known as labor People are human resources

Any resource from nature such as coal or minerals, fish, air or water

A country’s wealth is determined by its vast resources and ability to utilize them.

Capital= Money

These resources assist in the production of buildings or offices etc.

Equipment, furniture, computers etc. are capital resources