Download - Economic Decision Making
![Page 1: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/1.jpg)
Economic Decision Making
Chapter 2
![Page 2: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/2.jpg)
Why is What We Want Scarce?
• Wants are unlimited / Means to acquire them are not
![Page 3: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/3.jpg)
Scarcity is Everywhere
• How can goods be scarce is everyone has them?
• Surely there are enough providers of services, so how can those be scarce?
• They are scarce because the resources to produce them are scarce.– What if everyone were rich?
![Page 4: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/4.jpg)
![Page 5: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/5.jpg)
What is the Difference
• Scarcity v. Shortage– RLE – Hurricane Katrina– RLE…..
![Page 6: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/6.jpg)
How Do We Satisfy Our Wants
• Factors of Production:– 1.– 2.– 3.
• Inputs / Outputs
• Production Equation:– L + L + C = G & S
• And sometimes Y: Entrepreneurship
![Page 7: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/7.jpg)
“Gifts of Nature”
• What is “land” besides real estate?
• Perpetual Resources, the gifts that keep on giving.– Renewable / Nonrenewable
• What is the value of a resource tied to?
![Page 8: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/8.jpg)
Human Capital / Labor Resources
• What is labor?– Population / Willingness To Work– Human Capital – quality of work
• RLE – – The contrast of wealthy and poor countries – book
example of Japan and Nigeria
![Page 9: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/9.jpg)
![Page 10: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/10.jpg)
![Page 11: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/11.jpg)
![Page 12: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/12.jpg)
![Page 13: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/13.jpg)
![Page 14: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/14.jpg)
![Page 15: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/15.jpg)
![Page 16: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/16.jpg)
![Page 17: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/17.jpg)
![Page 18: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/18.jpg)
![Page 19: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/19.jpg)
![Page 20: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/20.jpg)
![Page 21: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/21.jpg)
![Page 22: Economic Decision Making](https://reader035.vdocuments.us/reader035/viewer/2022062517/56813b5d550346895da45560/html5/thumbnails/22.jpg)