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Economic way of thinking


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Economic way of thinking

  1. 1. Economic Way of Thinking<br />
  2. 2. People Choose<br />There is always a choice<br />Do you spend or save?<br />Do you buy the most expensive or the<br /> generic? <br />
  3. 3. All Choices Involve Costs<br />Opportunity Cost Cost of the next best choice that you gave up because of the choice you made.<br />Spend your paycheck on a new cell phone<br /> give up on the choices that money could have provided in the future<br />
  4. 4. People Respond to Incentives in Predictable Ways<br />Incentive is a cost or benefit that influences our decisions<br />Money buy stuff, freedom to make more choices<br />Satisfaction you have to be happy with what you do or the decisions you make<br />Values pay extra for organic<br />Saving more goods and services in the future <br />Education more money in the future more control over your life<br />
  5. 5. American Economic Systems influences choices and incentives <br />Relies on markets, choices, and incentives<br />Market Private –Enterprise system provides choices and opportunities<br />Americans are free to make their own economic choices<br />
  6. 6. People Gain When You Trade Voluntarily<br />You are not forced to make trade/buy goods and services or work for a particular employer<br />You do things because you perceive the benefits are greater than the costs<br />Need to trade carefully/make wise decisions or you will not benefits as much from your trade/purchase/decision<br />
  7. 7. Choices Have Future Consequences<br />Spend today you will not have the money to spend in the future<br />Conserving, investing and saving now will increase your choices and freedom in the future <br />