Introduction to Economics

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Introduction to Economics. Presentation by Remedios Llorente, 4º B CAL, EOI Sevilla.

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Introduction to Economics

  1. 1. What is economics?The term economics, from the Greek, “oikonomica”, means a science of managing the house.
  2. 2. Why do we need to study economics?“Economicsstudies howpeoplemakedecisions tosatisfyneeds andwants”
  3. 3. NeedsNeeds
  4. 4. Unlimited needs
  5. 5. Maslows hierarchy of needsMaslow uses the following terms: Physiological, Safety,Belongingness and Love, Esteem, and Self-Actualization.There is a need to describe the pattern of the humanmotivation.
  6. 6. Limited resources
  7. 7. Scarcity of resources and need to chooseScarcity happens whenthere are limitedquantities of resources tomeet unlimited need ordesires.
  8. 8. ECONOMICS arises from the conflict between Unlimited needs Scarcity of resources generating Choice Scarcity implies Which materializes in Opportunity cost What will be produced? How will it be produced? For whom will it be produced?how a country Market Economyanswers thesequestions depends on Economic Systems Command Systemthe type of economicsystem they have Mixed Economy
  9. 9. Opportunity cost of our decisions Opportunity cost is thevalue of the best availableoption for someone whohas chosen from amongseveral mutually exclusiveoptions.
  10. 10. ECONOMICS arises from the conflict between Unlimited needs Scarcity of resources generating Choice Scarcity implies Which materializes in Opportunity cost What will be produced? How will it be produced?For whom will it be produced? how a country Market Economy answers these questions Economic Systems Command System depends on the type of economic Mixed Economy system they have.
  11. 11. Economic agents Economic agentsare the protagonists ofthe economy, andtherefore they have tochoose.
  12. 12. Economic agents Circular flow of are interrelated by incomeFirms Govermment Households Land Productive Labor need factors Capital For performing the Incomes Production results in Costs
  13. 13. Circular flow of income

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