GED Social Studies

Comprehensive study of GED social studies covering fundamental concepts and advanced applications.

Basic Concepts

Economic Basics and Systems

What is Economics?

Economics is the study of how people use resources to meet their needs and wants. Resources are limited, which means we have to make choices about how to use them.

Types of Economic Systems

  • Market Economy: Businesses and consumers decide what to produce and buy.
  • Command Economy: The government makes most economic decisions.
  • Mixed Economy: Combination of market and government decisions.

Key Economic Concepts

  • Supply and Demand: Prices change based on how much people want something (demand) and how much is available (supply).
  • Scarcity: Not enough resources for everyone to have everything they want.

Why Learn Economics?

Understanding economics helps you make smarter decisions about spending, saving, and voting on policies that affect the economy.

Examples

  • When a new video game console is released and everyone wants it, the price goes up due to high demand.

  • In a command economy, the government might decide how many cars are made each year.

In a Nutshell

Introduces basic economic principles and systems.

Key Terms

Scarcity
Limited resources for unlimited wants.
Supply and Demand
The relationship between how much of something is available and how much people want it.
Market Economy
An economy where businesses and consumers make most decisions.