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WHAT IS

WHAT IS. ECONOMICS?. ECONOMICS. Economics: Is the study of how people, businesses and government choose to use their limited resources Resources: Things that can be used to produce goods and services. LABOR. STRIP-MINING MACHINE. COAL. MONEY…DUHHH. ECONOMICS.

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WHAT IS

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  1. WHAT IS ECONOMICS?

  2. ECONOMICS • Economics: Is the study of how people, businesses and government choose to use their limited resources • Resources: Things that can be used to produce goods and services

  3. LABOR

  4. STRIP-MINING MACHINE

  5. COAL

  6. MONEY…DUHHH

  7. ECONOMICS • Goods: Things that you can see, touch and buy or sell. • Cell phone • MP3 player • PSP

  8. ECONOMICS 3. Service: Any work that someone does for others for money • Teachers • Doctors • Lawyers

  9. DOCTOR?

  10. SCOTTISH LAWYERS

  11. Whom did you think I would use as an example of a teacher ?

  12. ECONOMICS • Needs v. Wants • Needs: Goods or services that are required for continues survival • Food b. Clothing c. Shelter

  13. ECONOMICS • Needs v. Wants • Wants: Goods or services that are NOT required for survival existence • Pizza b. $100 shoes c. Mansion d. PS2 e. MP3 f. Cell Phones

  14. ECONOMICS QUESTIONS: • When was the last time you bought something? • When Was the last time you sold something? • Last time you bought something was it a want or a need?

  15. FACTORS OF PRODUCTION • Four Factors of Production: • Natural Resources: • Water b. Land • Animals d. Coal e. Oil f. Minerals

  16. FACTORS OF PRODUCTION • Four Factors of Production: • Labor: People who do work

  17. FACTORS OF PRODUCTION • Four Factors of Production: • Capital: Machines, tools and money used for business

  18. FACTORS OF PRODUCTION • Four Factors of Production: • Entrepreneurs: People who start and run businesses

  19. OPPORTUNITY COSTS • Opportunity Cost: What ever is given up when a choice is made.

  20. OPPORTUNITY COSTS • Caused by scarcity. • Scarcity: Not enough of a certain resource to satisfy people’s needs or wants

  21. OPPORTUNITY-COSTS • When thinking of opportunity-costs, always ask these questions: • “What will I have to give up when I make any decision?” • “What will I get when I make any decision?”

  22. PRODUCTIVITY • Productivity: The amount of goods and services produced by a worker or business in a given time-period. • John makes four oak chairs each day • Suzy makes six oak chairs each day. • Who was more productive?

  23. SPECIALIZATION • Specialization: The use of resources to produce only a single good or service or a few goods or services: • Doctor • Computer store • Rancher

  24. TECHNOLOGY • Technology: The use of science to create new or better goods and services or more efficient ways to produce goods or services.

  25. TECHNOLOGY • Ox and plow…tractor • One car at a time…assembly-line • Shovel…snow plow

  26. PRODUCTIVITY • Technology and specialization can combine to increase productivity.

  27. PRODUCTIVITY • Farming in the past required farmers to produce a variety of crops (to feed the family) along with a cash crop (for sale) • Today, farmers can produce one crop…sell it and buy their food.

  28. YELL HAY!!!

  29. Now do the “Closing” This has been brought to you by……………………….(tell the Substitute to put up the next slide!)

  30. Reach For A Star Productions John P. Lukewww.mrluke.net

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