1 / 14

Introduction to AP Economics

Welcome to the world of economics! Discover how society allocates scarce resources among unlimited wants and needs. Learn about different economic systems and the concept of trade-offs in decision-making. Dive into the social science of human behavior and explore the forces that drive economic choices.

redelstein
Download Presentation

Introduction to AP 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 AP Economics Welcome!

  2. ECONOMICS

  3. The World & Resources People(human nature) +

  4. Why do we need Economics? • Resources are SCARCE • People have Unlimited Wants & Needs FORCES: 3) Society to allocate resources

  5. End of Day 1

  6. Exact Sciences Social Science versus Theory based Inexact Science Difficult/impossible to prove Based on human behavior Fact based Proofs often used: 2 + 2 = 4 • Examples: • Psychology • Economics • History • Examples: • Physics • Chemistry • Mathematics Social sciences:academic disciplines which study the sociallife of human groups & individuals • Examples: economics, geography, history, political science, psychology & sociology

  7. Formal Definition of Economics • The social science of how society allocates scarce resources among unlimited wants and needs.

  8. Air versus Oil Economics = The social science of how a society allocates their scarce resourcesamong unlimited wants & needs. Non-renewable Renewable

  9. Economic Systems • Economic system:   a system of production, resource allocation & distribution of goods/services. • All types of economic systems allocate scarce resources • Society must choose both a political & economic system

  10. 3 Types of Economic Systems • MARKET • COMMAND • TRADITIONAL

  11. There is NO Free Lunch • Nothing is free in economics • #1 Rule of Economics! • People face Trade-offs in all decision making • Decisions have both: -Opportunity Costs & Opportunity Benefits -Short RunandLong Run implications

  12. 2 Types of Costs: Marginal means “next unit” Marginal Benefit = MB Marginal Cost = MC MB ≥ MC(“do it” or “buy it”)

  13. Trade-off Analysis Should I go to college? Opportunity Benefit Opportunity Cost Explicit Cost? Implicit Cost? Long Run? Short Run?

  14. End of 2nd Day Please read your textbook!

More Related