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European Economies
 

European Economies

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    European Economies European Economies Presentation Transcript

    • Economics 101 Unit 4 Notes
    • What Does “Economics” Mean?
      • --Economics is the study of MONEY!
    • Needs & Wants
      • --We all must have a certain amount of food, water, clothing, & shelter to survive—NEEDS!
      • --Anything beyond these needs is a WANT
      • -- Need : something required for survival; well defined & limited
      • -- Want : something desired; endless
    • Opportunity Costs
      • --People have limited incomes ; this forces us to make choices about how to spend our money
      • --Every choice has costs
      • --Economists also count the “choice” we didn’t make as the opportunity cost , or trade-off
      • -- Opportunity Cost : the thing that is given up when something else is chosen
    • What Do We Spend $ On?
      • --How people spend their limited resources depends on their needs, likes and dislikes, income, available substitutes, and the price of goods they want
      • -- Goods: any manufactured product, like food, shoes, TVs, etc.
    • What Does This Mean for Businesses?
      • --Like people, governments and businesses face limits and must make choices
      • --Businesses have limited profits , and countries have limited resources
      • --Resources include workers, money from taxes, natural resources, & machinery
      • --Because everyone faces limited resources, or scarcity , everyone makes choices
      • -- Scarcity : not enough resources, time, or money for all needs and wants
    • Economic Choices
      • INDIVIDUALS:
      • --Some choices individuals make include:
      • --whether to save or spend their money
      • --how to spend their money
      • --how to divide their time between work and leisure
    • Economic Choices
      • BUSINESSES:
      • --Businesses have to decide what to make, how much of it to make, how to make it, and what to do with their profits
      • -- Profits: money earned beyond the cost of making and selling the product
      • --Profits can be taken as owner income, divided among workers, or invested in the business
      • -- Invested : to commit money with the hope of making more money
    • Economic Choices
      • GOVERNMENTS Must Decide:
      • --which natural resources to preserve and which to sell
      • --how much to tax
      • --how to spend the nation’s income
      • --between spending on things such as the military, education, roads, health services, etc.