Intro to ECON_Chapter 1

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Here are the slides used in the contact sessions and voice-over PPT lecture video's. Watch the video on YouTube and then use your textbook to supplement the slides to make your own set of notes.
Chapter 1 is about the key ideas of scarcity, choice and opportunity cost and illustrating it with a production possibilities curve.

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Intro to ECON_Chapter 1

  1. 1. ECONOMICS FOR SOUTH AFRICAN STUDENTS CHAPTER 1: WHAT IS ECONOMICS? ECON-1
  2. 2. THE ECONOMY VS. Studying Economics
  3. 3. HOW WOULD YOU DESCRIBE THE STUDY OF ECONOMICS? Needs Resources Scarcity Choice Opportunity cost
  4. 4. ECONOMISTS LIKE GRAPHS Scarcity, choice and opportunity cost can be illustrated with the production possibilities frontier. • What is the production possibilities frontier? • The example of the production of fish and potatoes... Option Fish (baskets per day) Potatoes (kg per day) A 0 100 B 1 95 C 2 85 D 3 70 E 4 40 F 5 0
  5. 5. FIGURE 1-1 Option Fish (baskets per day) Potatoes (kg per day) A 0 100 B 1 95 C 2 85 D 3 70 E 4 40 F 5 0
  6. 6. FIGURE 1-1 Cannot be produced with available resources Society has to choose: C = 2 baskets fish and 85kg potatoes D = 3 baskets fish and 70 kg potatoes What is the opportunity cost of One more basket of fish?
  7. 7. THE SCIENCE OF ECONOMICS Social science... • There are laws – it is differs from the natural sciences • LAW of DEMAND! • What is demand again? • Ceteris paribus
  8. 8. 2 HOOFDELE VAN DIE STUDIE VAN EKONOMIE Economics MACRO The economy as a whole MICRO Individual participants

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