What is Economics?
Scarcity and Choice
   Need –is something like air, food, or shelter that
    is necessary for survival
   Want- is an i...
Scarcity
   Goods – are physical objects such as shoes and
    shirts
   Services – are actions or activities that one
 ...
Scarcity Vs. Shortages
   Scarcity                        Shortages
   Implies limited quantities      A situation in ...
Factors of Products
   Land
   Labor
   Capital
Land
Any effort a person devotes to
A task for which that person is paid
Labor

Any effort a person devotes to
A task for which that person is paid
Capital
Any human-made resource that is used
To create other goods and services
-   Physical capital – all human made good...
Entrepreneurs
   Are ambitious leaders who decide how to
    combine land, labor, and capital resources to
    create new...
   http://www.forbes.com/2009/07/17/google-
    bing-research-entrepreneurs-sales-marketing-
    lewis.html
Section 2
               Opportunity Cost
   Trade offs
   Guns or butter
   Opportunity cost
   Thinking at the margin
Trade-offs
   Are all the alternatives that we give up whenever
    we choose one course over another.
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What Is Economics

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What Is Economics

  1. 1. What is Economics?
  2. 2. Scarcity and Choice  Need –is something like air, food, or shelter that is necessary for survival  Want- is an item that we desire but that is not essential to survival  Economics- is the study of how people seek to satisfy their needs and wants by making choices
  3. 3. Scarcity  Goods – are physical objects such as shoes and shirts  Services – are actions or activities that one person performs for another.
  4. 4. Scarcity Vs. Shortages  Scarcity  Shortages  Implies limited quantities  A situation in which a of resources to meet good or service is unlimited wants unavailable.  While someone may be  Ex. Droughts can also able to buy hundreds of create shortages that last baseballs no one can for many years. have endless supply. Sooner or later a limit is reached
  5. 5. Factors of Products  Land  Labor  Capital
  6. 6. Land Any effort a person devotes to A task for which that person is paid
  7. 7. Labor Any effort a person devotes to A task for which that person is paid
  8. 8. Capital Any human-made resource that is used To create other goods and services - Physical capital – all human made goods that are used to produce other goods and services; tools and buildings - Human Capital – is the knowledge and skills a worker gains through education and experience
  9. 9. Entrepreneurs  Are ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services.
  10. 10.  http://www.forbes.com/2009/07/17/google- bing-research-entrepreneurs-sales-marketing- lewis.html
  11. 11. Section 2 Opportunity Cost  Trade offs  Guns or butter  Opportunity cost  Thinking at the margin
  12. 12. Trade-offs  Are all the alternatives that we give up whenever we choose one course over another.

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