BRIEF DESCRIPTION ABOUT SOME BASIC CONCEPTS FOR ECONOMICS

1. WHAT IS ECONOMICS??

2. WHAT IS ECONOMICS??
● ECONOMICS IS THE
STUDY OF HOW
PEOPLE USE
RESOURCES TO
SURVIVE AND TO
SATISFY THEIR
NEEDS AND
WANTS

3. 3 BASIC ECONOMIC QUESTIONS
● A SOCIETY
MUST
ANSWER
THREE BASIC
ECONOMIC
QUESTIONS.

4. 1ST ECONOMIC QUESTION
● WHAT
GOODS AND
SERVICES
SHOULD BE
PRODUCE?
(RESOURCES)

5. 2ND ECONOMIC QUESTION
● HOW TO
PRODUCE
THE GOODS
AND
SERVICES?
(PRODUCERS)

6. 3RD ECONOMIC QUESTION
● WHO GETS
THE GOODS
AND
SERVICES
PRODUCED?
(HOUSEHOLDS)

7. CASH ECONOMY
● IN A CASH
ECONOMY
INCOME
DETERMINES
THE GOODS
AND SERVICES
A CONSUMER
CAN BUY

8. FREE ENTERPRISE
● THE U.S. HAS A FREE
ENTERPRISE SYSTEM
● A FREE ENTERPRISE
SYSTEM OFFERS
SEVERAL BENEFITS,
● ALSO THE
GOVERNMENT PLAYS
A LIMITED ROLE IN
FREE ENTERPRISE

9. BENEFITS OF FREE ENTERPRISE
● GIVES CONSUMERS
FREE CHOICE
● ENCOURAGES
COMPETITION OR
BEST PRODUCT AT
LOWEST PRICE
● SUPPORTS PRIVATE
OWNERSHIP
● ENCOURAGES
INVENTION AND
INVESTMENT

10. WHAT ARE VALUES???
Values strongly influence our
spending habits. We don’t usually
spend our money on things we do
not feel are important. Typically,
the more important something is,
the more we are willing to spend
on it.

11. Values
▪ Family
▪ Friends
▪ Work
▪ Honesty
▪ Self Reliance
▪ Independence
▪ Religion
▪ The beliefs and
practices in your
life that are very
important to you.

13. WHAT IS SCARCITY???
“Scarcity is an economic principle
stating that because of limited
resources, an economic system
cannot possibly produce all the
goods and services that people want;
therefore, choices must be made
about how the limited resources will
be used.”

14. NEEDS vs WANTS
▪ NEEDS
▪ Essentials…the
basics of life
▪ Food
▪ Clothing
▪ Shelter

15. NEEDS vs WANTS
▪ WANTS
▪ Simply increase the
quality of living

16. ALMOST FINISHED
● WHAT IS SCARCITY?
● WHAT ARE NEEDS?
● WHAT ARE WANTS?
● WHAT ARE VALUES?
● NAME TWO THINGS THAT
INFLUENCE YOUR VALUES

17. CAN YOU ANSWER THESE
QUESTIONS???
● WHAT ARE THE THREE BASIC ECONOMIC
QUESTIONS EVERY SOCIETY MUST
ANSWER?
● WHAT ARE TWO BENEFITS THAT A FREE
ENTERPRISE SYSTEM OFFERS TO
CONSUMERS?
● WHAT ARE THE BASIC NEEDS?