What iseconomics

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What iseconomics

  1. 3. <ul><li>The study of how to meet </li></ul><ul><li>unlimited wants and needs </li></ul><ul><li>with limited resources. </li></ul>
  2. 4. <ul><li>All I want </li></ul><ul><li>to know </li></ul><ul><li>is </li></ul>
  3. 5. <ul><li>I want a lot of stuff </li></ul><ul><li>but </li></ul><ul><li>I can’t afford it all? </li></ul>
  4. 6. <ul><li>You have to deal with scarcity! </li></ul>
  5. 7. <ul><li>NOT ENOUGH </li></ul><ul><li>RESOURCES </li></ul><ul><li>TO COVER ALL YOUR </li></ul><ul><li>WANTS AND NEEDS </li></ul>
  6. 8. <ul><li>Everyone has to deal with scarcity, including </li></ul><ul><ul><li>Individuals </li></ul></ul><ul><ul><li>Families </li></ul></ul><ul><ul><li>Schools </li></ul></ul><ul><ul><li>Communities </li></ul></ul><ul><ul><li>Businesses </li></ul></ul><ul><ul><li>Nations </li></ul></ul>
  7. 9. <ul><li>BASIC ELEMENTS USED TO CREATE GOODS AND SERVICES </li></ul>
  8. 10. <ul><li>Natural </li></ul><ul><ul><li>Gifts of nature – sunlight, water, land, trees, etc. used to produce goods and services </li></ul></ul><ul><li>Human </li></ul><ul><ul><li>Physical and mental labor people use to produce goods and services </li></ul></ul><ul><li>Capital </li></ul><ul><ul><li>Buildings, machines, technology and tools used to produce goods and services </li></ul></ul>
  9. 11. <ul><li>Money is a resource called </li></ul><ul><li>financial capital </li></ul><ul><li>which allows you to purchase other resources </li></ul>
  10. 12. <ul><li>Because you have to deal with scarcity, you have to make </li></ul><ul><li>CHOICES! </li></ul>
  11. 13. <ul><li>Every choice you make has a </li></ul><ul><li>consequence! </li></ul>
  12. 14. <ul><li>Each consequence is either a </li></ul><ul><li>cost or a benefit! </li></ul>
  13. 15. <ul><li>COSTS </li></ul><ul><li>= What you must give up </li></ul><ul><li>BENEFITS </li></ul><ul><li>= What you will receive </li></ul>
  14. 16. <ul><li>How to best use your </li></ul><ul><li>resources </li></ul><ul><li>to meet your </li></ul><ul><li>wants and needs! </li></ul>
  15. 17. <ul><li>You are starting to understand </li></ul><ul><li>BASIC </li></ul><ul><li>ECONOMICS </li></ul>
  16. 18. Unlimited wants and needs Limited resources Natural, Human, Capital, Financial Scarcity Choices Costs and Benefits = = = + Consequences =

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