1. Basic Economics

2. The Law of Supply and Demand
When supply is up, and
demand is down, prices go
down.
When supply is down and
demand is up, prices go up.

3. The 4 Factors of
Production
Natural Resources
Human Resources/Labor
Capital Resources
Entrepreneurship

4. Scarcity
In any society there is never
enough of everything to
satisfy everyone’s wants and
needs.

5. More on Scarcity
Unlimited wants and limited
resources force choices.
Individuals, businesses, and
governments all make
choices due to scarcity.

6. Scarcity in Developed
Nations
Insufficient domestic
petroleum
Lack of raw materials
Unfavorable balance of trade
(more imports than exports)

7. Underdeveloped Nations
Not enough farmland, water,
food
Lack of medical personnel,
disease control
Lack of transportation for goods

8. Continued:
Lack of building materials
Lack of employment
Lack of capital for
investment
Lack of education

9. Technology
Advancements in technology
have led to higher productivity
and a higher standard of living.

10. Examples:
The wheel
Irrigation
Hydroelectric power
Automobiles
Telephones Computers

11. OPEC
Organization of Petroleum
Exporting Countries
Countries worked together
and were able to raise the
price of oil!

12. The richest oil-producing
countries in the M.E. are on the
Arabian Peninsula.
Kuwait, Qatar, and the United
Arab Emirates