200 likes | 345 Views
Economics 101. Do Now:. When you think of the word Economics what comes to mind?. What is Economics?. The study of how people and nations make choices about how to use scarce resources to fulfill their needs and wants…. Needs Versus Wants. Needs versus Wants. Survival 1. Shelter 2. Food
E N D
Do Now: • When you think of the word Economics what comes to mind?
What is Economics? • The study of how people and nations make choices about how to use scarce resources to fulfill their needs and wants…
Needs versus Wants • Survival 1. Shelter 2. Food 3. Water 4. Healthcare 5. Education • Everything you desire but may never get • Everything else that isn’t a basic need Needs Wants
Good versus Service • Object, something you buy • Something done for you for a fee Good Service
Resources • What you use to make your needs and wants • Natural Resources- Land, Water • Resources are always scarce!!! • Workers Resources Human Resources
Factors of Production: • The natural resources • The land you use for your business or what land your building is on • Workers Land Labor
Factors of Production: • Someone who has an original idea • All the things you need for your business • Financial Capital: money to run your business Entrepreneurship Capital
Factors of Production • The science or process behind producing the goods or services • Also known as “Knowledge” Technology
Examples: Vamsi’s Car Repair Shop
Examples: Parteek’s Pizza Shop
Scarcity versus Shortage • Once it is gone it may never come back • You may not have it right now but it will come back • Temporary Scarcity Shortage
What does this matter? • Because we have limited resources we have to make choices • We can’t fulfill everyone’s needs and wants
Choices: • The next best thing • What you gave up • The “cost” or value of what you gave up • Not always a monetary value Trade Off Opportunity Cost
Choices in Production: • Making goods and services • Manufacturing • All the possibilities you can make from your resources Production Production Possibilities
Examples: Kush’s Pig Farm Rahi’s 100 Acres of Land