The Economic Process

1
The Economic Process
2
Factors of Production
3
Basic Economic Problem
Unlimited
Limited

Wants
Resources
Scarcity

(when economic resources needed to produce goods
services are in short supply when the demand
is greater than the supply)
4
Consumers

• Buy goods services from distributors
• Work for producers to earn wages benefits

Example
Nike produces shoes to sell to distributors.
Distributors are sportswear stores, such as Foot
Action.
Then consumers purchase Nike shoes from the
sportswear store.
5
Recovery
4
4
Recovery
Recovery
Increasing Confidence in Economy
Decreasing Unemployment
Spending Increases
6
Supply and Demand
The best price for a television set is 400