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What is Economics?

What is Economics?. Economic Concepts. Economics : The study of how society chooses (decides) to use scarce resources (rare availability) to satisfy (to please) unlimited wants and needs (continual self interest). Needs vs. Wants. Need: Anything that is necessary for survival

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What is Economics?

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  1. What is Economics?
  2. Economic Concepts Economics: The study of how society chooses (decides) to use scarce resources (rare availability) to satisfy (to please) unlimited wants and needs (continual self interest)
  3. Needs vs. Wants Need:Anything that is necessary for survival food, clothing and shelter Needs are unlimited Want: Anything that is deseried: (ex. need food, might want pizza, sandwich, etc.) Wants are unlimited
  4. Please list 5 Wants and 5 Needs Be prepared to share with the class
  5. Economics: is the study of CHOICES!!!! Because our Wants are UNLIMITED and we have a scarce amount of resources, we have to make CHOICES about how use these resources effectively!!
  6. Economic Concepts Economist: One who studies these choices made by society
  7. 2 types of Economics 1.) Microeconomics: Choices made by one in the economy (could be a person, or a single company) 2.) Macroeconomics: Choices made by an entire economy (economic bailout plan, decisions to allow certain businesses by cities ex. Berkeley)
  8. Who makes the choices (decisions)? 1. ) Consumers: People who purchase goods and services (you!) 2.) Producers: Decide what products they’re going to sell and what price to charge Car manufacturer, Mr. Pickles
  9. Goods: Tangible (real) objects which can be touched (food, clothing, iPod, etc.) Services: Things that people provide which can’t be touched (plumber, grocery bagger, computer tech)
  10. Goods vs. Services Name 4 goods and 4 services.
  11. 4: Factors of Production Factors of Production: This that are used or needed (inputs) to help produce (make) the products. C.E.L.L Capital Entrepreneurship Land Labor
  12. 4 Factors of Production 1.) Land: Anything that is ‘God given’, or what exists naturally (trees, crude oil, water, plants, minerals)
  13. Labor 2.) Labor: human effort (construction workers, secretary, store manager)
  14. Factors of Production 3.) Capital (tools):Things that are necessary to produce goods or services (computers, cash register, steel beams for buildings, refrigerator)
  15. Factors of Production 4.) Entrepreneurship (person who runs a business): person or organization necessary to bring about production and other resources (Bill Gates, Steve Jobs, maybe you someday!)
  16. Think/Pair/Share At different times throughout the semester we will be taking part in Think/Pair/Share when I ask questions to you. 1.) Think: Take time to individually think about your answer This should be silent. You must be prepared to discuss your answer 2.) Pair: After, Thinking about your answer, share what you thought with a nearby neighbor. Exchange ideas, discuss whether or not you agree with the person and why? 3.) Share: Share your thoughts out-load with the class
  17. Questions to Consider Think/Pair/Share 1.) If you could choose between two nearly identical products–one that is free and one that you have to pay for–which would you choose? Why?
  18. Think/Pair/Share 2.) If you were opening a new business, would you select a location closer to or farther away from a business that sold similar or even identical product? Why?
  19. Think/Pair/Share 3.) If you could make a small change in your daily routine that would save you time and money, would you
  20. Economics Acrostic Acrostic: is a poem where you have a meaningful word. IE: Mr. Brady. And with each letter you include a sentence or a few that describe your main word so that the first letter corresponds to the letters in your word. Magnificent teacher Really cool guy Baseball is his favorite sport R A D Y
  21. Economics Acrostic Everything has a cost. There is no free lunch. There is always a trade-off.Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).iNcentives work. People respond to incentives.Open for trade. Trade can make all parties better off. Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers. Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)Concentrate on productivity. A country’s standard of living depends on how productive its economy is.Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.
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