1 / 13

Introduction to Economics

Introduction to Economics. Economics The study of how people seek to satisfy their needs and wants by making choices. Need - Something like air, food, or shelter that is necessary for survival Want – An item that we desire but that is not essential to survival. Scarcity.

gayora
Download Presentation

Introduction to Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Introduction to Economics • Economics • The study of how people seek to satisfy their needs and wants by making choices. • Need - Something like air, food, or shelter that is necessary for survival • Want – An item that we desire but that is not essential to survival

  2. Scarcity • Using limited quantities of resources to meet unlimited needs and wants. Goods & Services FOP’s NEEDS & WANTS

  3. An Economic System… • Organizes its resources to distribute goods and services to its citizens • What are the economic resources?

  4. C E L L apital ntrepreneurship and abor Factors of Production

  5. Capital • Investment in goods that can produce other goods in the future • Human Capital • Education and training, whether formal or on-the-job • Physical Capital • Machines, roads, factories, schools, and office buildings

  6. Entrepreneurship • Creative, risk-taking use of the factors of productions in order to… MAKE A PROFIT Dave Thomas G.W. Carver Sam Walton Henry Ford

  7. Land • Naturally-occurring goods • Ex: • Water, air, soil, minerals

  8. Labor • Human effort used in production

  9. Resource Pine tree Teacher Telephone Chain saw Lawn mower Receptionist Natural gas Drayton McClane Crude oil farmer Category Land Labor Capital & Consumer Capital & Consumer Capital & Consumer Labor Land Labor and Entrepreneur Land Labor and Entrepreneur Factors of Productioncategory = land, labor, capital good,entrepreneur, consumer good

  10. Trade off vs. Opportunity cost • Trade off • An alternative we sacrifice when we make a decision • Opportunity Cost • The value that is given up when making that decision

  11. Identify the trade-off and opportunity cost in the following. • A nation can make either pizzas or robots. They pick pizzas. Trade-off? • Robots • Opportunity Cost? • The value of the robots • Going to school versus a full-time job. Trade-off? • Job. Opportunity cost? • The salary you aren’t going to receive

  12. Car companies retool to make more hybrids than SUVs. • Trade-off? The SUVs. Opportunity Cost? • Loss of sales from the SUVs • Going to the movies or going to see grandma. You pick the movies. • Trade-off? • Granny. Opportunity Cost? • The value of the time spent with grandma.

  13. To cheat on a test or to be honest. Pick—cheat. Trade-off? • Honesty,integrity, reputation • Opportunity cost? • The value you attach to those things

More Related