1 / 11

What is the empty wallet syndrome?

What is the empty wallet syndrome?. Why does scarcity affect us at all times?. What are wants and needs?. Needs+= must have to survive items: Food, clothing shelter, air, water etc. Wants= things we’d like to have but they are not necessary for survival- unlimited!.

mercia
Download Presentation

What is the empty wallet syndrome?

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. What is the empty wallet syndrome? Why does scarcity affect us at all times?

  2. What are wants and needs? • Needs+= must have to survive items: Food, clothing shelter, air, water etc. • Wants= things we’d like to have but they are not necessary for survival- unlimited!

  3. How do we satisfy those unlimited wants and needs? • We use our very limited resources of course? • This is called Scarcity!

  4. Because we all have unlimited wants and needs but suffer from limited resources we always face the problem of Scarcity– we must choose wisely. We can buy Goods & Services to satisfy that utility. But which do I choose?

  5. Sometimes those goods and services are temporarily unavailable. Economists call that a Shortage • Sold Out 

  6. What are Goods and Services made of? • Factors of Production • Land • Labor • Capital • Entrepreneurship

  7. What goes into your empty box? Human Capital • Our knowledge, skills and abilities

  8. How can we maximize our Utility? = Efficiency • We weigh our choices and compare benefits to the costs of each alternative • Economists call this Tradeoffs and Opportunity costs

  9. Tradeoffs= precieved value • To Adam Smith and his concept of the market economy-(laissez faire) • Those values are best determined by the individual 

  10. Opportunity Cost= next best alternative to the chosen value

  11. Is there an economic way to evaluate these complex choices?= Graphs • Production Possibilities Curves • Resource Schedules

More Related