Economy

Created by Ellen Skidmore

Economy

Economy is the careful use and management of goods, services, and labor(workers).

The Factors of Production

Land- Land is the economic resource encompassing natural resources found within a nations economy. It includes timber, farms, fishing, and land.


Labor- Labor represents the capital used to transform natural recourses into products for consumers.


Capital- Capital can represent the money that companies use to purchase natural resources, land and other goods/services. Capital also represents the major resources individuals and companies use when producing goods or services.


Entrepreneurship- Entrepreneurs are considered a factor of production because entrepreneurs create ideas and products that people can sell or buy.

Supply & Demand

Supply and Demand is a major part of economy. Supply is the amount of product you have. Demand is how much a consumer wants/needs to buy something.

How they effect each other

Scarcity effects supply a lot-but only if there is scarcity. If there is scarcity that means there is no supply of that product. It effects demand by, say there was a real popular product, and everyone wanted it. Everyone bought some and the product was almost scarce. Then the price rose. That is how it effects both Supply & Demand.

Scarcity

Scarcity is when there is no more of a certain product or resource.

How scarcity effects the converse product

Scarcity affects the Converse product by making it go scarce or not have any more of that product. In 2003 the converse went bankrupt, and was sold to Nike.