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Economics 101

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

shelley-greer
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Economics 101

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  1. Economics 101

  2. Do Now: • When you think of the word Economics what comes to mind?

  3. What is Economics? • The study of how people and nations make choices about how to use scarce resources to fulfill their needs and wants…

  4. Needs Versus Wants

  5. 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

  6. Good versus Service • Object, something you buy • Something done for you for a fee Good Service

  7. Resources • What you use to make your needs and wants • Natural Resources- Land, Water • Resources are always scarce!!! • Workers Resources Human Resources

  8. Factors of Production: • The natural resources • The land you use for your business or what land your building is on • Workers Land Labor

  9. 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

  10. Factors of Production • The science or process behind producing the goods or services • Also known as “Knowledge” Technology

  11. Examples: Vamsi’s Car Repair Shop

  12. Examples: Parteek’s Pizza Shop

  13. 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

  14. What does this matter? • Because we have limited resources we have to make choices • We can’t fulfill everyone’s needs and wants

  15. 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

  16. Examples:

  17. Choices in Production: • Making goods and services • Manufacturing • All the possibilities you can make from your resources Production Production Possibilities

  18. Examples: Kush’s Pig Farm Rahi’s 100 Acres of Land

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