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FOUR KEY ELEMENTS

FOUR KEY ELEMENTS. Of ECONOMICS. Person who studies all that goes on within the functionality of our economic systems and choices Concerned with how the goods and services are produced and distributed. ECONOMISTS. A social science

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FOUR KEY ELEMENTS

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  1. FOUR KEY ELEMENTS Of ECONOMICS

  2. Person who studies all that goes on within the functionality of our economic systems and choices • Concerned with how the goods and services are produced and distributed ECONOMISTS

  3. A social science • Observes the behavior of people as they deal with the basic issue of limited resources and unlimited wants • The study of human effort to satisfy seemingly unlimited and competing wants through the careful use of relatively scarce resources • Studies the decisions that people (individuals) make about using a variety of resources ECONOMICS

  4. Involves the effects of economic forces upon the individual parts of the economy • Businesses • Households • Individual Microeconomics

  5. Involves the impact of change on the economy as a whole rather than on an individual part • Unemployment • Inflation • GDP • Money Supply • Business Cycle Macroeconomics

  6. The Four Key Elements Analyze Explanation Description Predictions Economics

  7. Scrutinize all aspects of economic activities • Discover why things work • How things happen • Why do some people earn higher incomes • How do taxes affect people’s desire to work and save • Recommended Family size Analyze

  8. Communicate newly acquired knowledge to others • Really answer: the HOW and WHY • How people are spending less • Why or why not an economic measure is performing in the expected manner Explanation

  9. HOW IS IT WORKING

  10. If there is a common understanding of the way our economy works, some economic problems will be easier to fix

  11. Economics is a study of both what is happening and what tends to happen, it can forecast what may happen in the future, including the most likely effects of different actions Predictions

  12. Predictions

  13. The social science concerned with the efficient use of limited/scarce resources to achieve maximum satisfaction of human economic wants ECONOMICS

  14. In other words the study of scarcity and choice. Every economic issue involves, at its most basic level, individual choice—decisions by individuals about what to do and what not to do. ECONOMICS

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