introduction to economics what is “economics”? what are the basic ideas of econ? who helped to...
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Introduction to Economics
Introduction to Economics
What is “economics”?What are the basic ideas of Econ?Who helped to create the study of
Econ?
What is “economics”?What are the basic ideas of Econ?Who helped to create the study of
Econ?
What is “economics”?What is “economics”?
Economics is the study of how a society satisfies their wants with limited resources
How do you divide things up to make the most good?
Economics is the study of how a society satisfies their wants with limited resources
How do you divide things up to make the most good?
Who created the study of economics?
Who created the study of economics?
The study of economics has been around since the beginning of human history Mesopotamia Ancient Greece Rome
Gained influence in government during the Industrial Revolution Late 1700’s - 1800’s
The study of economics has been around since the beginning of human history Mesopotamia Ancient Greece Rome
Gained influence in government during the Industrial Revolution Late 1700’s - 1800’s
What is the main problem in economics?
What is the main problem in economics? The main problem
in economics is…scarcity! What is scarcity?
Scarcity is when a society does not have enough resources to meet all its wants
The main problem in economics is…scarcity! What is scarcity?
Scarcity is when a society does not have enough resources to meet all its wants
How does scarcity affect a society?
How does scarcity affect a society?
Because of scarcity, societies are forced to ask difficult questions: What should we
produce? How do we produce
these products? For whom are we
making these products?
Because of scarcity, societies are forced to ask difficult questions: What should we
produce? How do we produce
these products? For whom are we
making these products?
UnlimitedWants
LimitedResources
Society must make difficult choices on how to Society must make difficult choices on how to use their limited resources in order to satisfy their use their limited resources in order to satisfy their
wantswants
1. What should we make?
2. How should we make it?
3. For whom are we making this stuff?
How does a society know what their resources are?
How does a society know what their resources are?
Resources are recognized through “The Factors of Production” Land Labor Capital Entrepreneurship
(Management)
Resources are recognized through “The Factors of Production” Land Labor Capital Entrepreneurship
(Management)
What is “land”?What is “land”?
What physical materials are available to a society (other than people)? Minerals Farmland Forests Natural Resources
What physical materials are available to a society (other than people)? Minerals Farmland Forests Natural Resources
What is “labor”?What is “labor”?
What skills does a society’s citizens have? Skills Intelligence Education Creativity
What skills does a society’s citizens have? Skills Intelligence Education Creativity
What is “capital”?What is “capital”?
What types of wealth does a society have? Money Machinery Tools Transportation
What types of wealth does a society have? Money Machinery Tools Transportation
What is “Entrepreneurship”?
What is “Entrepreneurship”?
Does a society have any risk takers? Economic leaders Managers Business owners
Does a society have any risk takers? Economic leaders Managers Business owners
How do societies in the end deal with scarcity?How do societies in the end deal with scarcity? Societies deal with
scarcity through responsibly utilizing their resources Constant analysis
of options
Opportunity Costs - What could I have bought?
Societies deal with scarcity through responsibly utilizing their resources Constant analysis
of options
Opportunity Costs - What could I have bought?
“There is no such thing as a free lunch”
“There is no such thing as a free lunch”
What types of Economics are out
there?
What types of Economics are out
there? Micro-economics:
The branch of economics that studies the individual people, industries, etc of a society
Micro-economics: The branch of
economics that studies the individual people, industries, etc of a society
Macro-economics: The branch of
economics that studies the society as a whole
Macro-economics: The branch of
economics that studies the society as a whole