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Basic Economic Concepts

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Basic economics... needs, wants, scarcity, etc.

  • @hbailey609 is the study of how individuals ans societies satisfy their unlimited wants with limited resources :)
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  • 'Short and sweet' defintions to explain economics.
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  • It is very useful things related Economics.
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  • Very useful data to study Economics.
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  • This data its essential for all mankind
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Basic Economic Concepts

  1. 1. Like scarcity, needs and wants, and junk like that<br />Basic Econ Concepts<br />
  2. 2. Needs and Wants<br />
  3. 3. Scarcity<br />“Limited quantities of resources to meet unlimited wants.”<br />What’s that mean?<br />
  4. 4. Scarcity<br />Your wants are pretty much unlimited. <br />Even if yours personally aren’t, once you add up everybody in the population, the collective wants are unlimited.<br />All resources, goods, and services are limited, however.<br />This means it’s impossible for all the wants to be met.<br />
  5. 5. Scarcity<br />Economics, then, tries to solve the problem of scarcity.<br />This doesn’t mean to make unlimited stuff, but figuring how to distribute scarce, limited stuff in the best way to meet wants.<br />It also wants to see how people satisfy needs and wants by the choices they make.<br />Why X and not Y? Why McDonald’s? Why did banks buy mortgage-backed securities? Why TXU and not Gexa? Why Crocs?<br />Seriously… why Crocs?<br />
  6. 6.
  7. 7.
  8. 8. Goods and Services<br />Goods<br />Stuff.<br />Services<br />Things people do for others.<br />
  9. 9. Shortage<br />When there isn’t enough stuff.<br />Not enough of a product can be supplied or it won’t be supplied. At least not at current prices.<br />If prices go up, it may become profitable for somebody to provide the good or service and that will eliminate the shortage.<br />
  10. 10. Factors of Production<br />Land, Labor, Capital<br />These have specific meanings in economics.<br />
  11. 11. Land<br />All natural resources used to produce goods and services.<br />
  12. 12. Labor<br />Work people get paid for.<br />
  13. 13. Capital<br />Human-made resources used to produce stuff or provide services.<br />Note this is different from land, which is natural resources.<br />Two types: Physical and Human.<br />
  14. 14. Physical Capital<br />Non-human assets used by real humans in production.<br />Whoa! Check out that physical capital!!!<br />
  15. 15. Physical Capital<br />This includes things like buildings, factories, equipment, computers, paper, copy machines, etc.<br />Typically, this increases productivity since you can do more of X and more time is freed up to pursue Y.<br />Not so much.<br />
  16. 16. Human Capital<br />The education, experience, abilities, and knowledge of an employee.<br />These have economic value.<br />Not all labor is equal in value.<br />

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