1
Economics 101
Presented by: Jennoa R. Graham, Ph.D.
Friday, April 4, 2014
 Economics – A social science that focuses on
the process of producing and exchanging
goods/services
 Microeconomics – F...
 Tangible – Product that you can touch
 Clothing
 Car
 Food
 Intangible – Services that you cannot touch
 Electricit...
 The Economic System – Macroeconomic
decisions of
 Products
 What should be produced?
 How much should be produced?
 ...
 Supply – Quantity of goods/services available
for sale
 Demand – Quantity of buyers wanting to
purchase goods/services ...
 Supply and Demand Graph
 The Economic System
 The Competitive Market System
 The Financial Market System
 Other Econ...
7
P = Price; Q = Quantity; D = Demand; S = Supply
As Demand goes
down; quantity
available for sale
stays high
(fewer sales...
 Traditional
 Based on Family and
Community Interaction
 Heavy dependence on
customs and rituals
 Market (Pure)
 Base...
 Form when many Producers/Manufacturers
compete with one another to offer products to a
large group of Consumers for PROF...
 Primary
 Starting line for
financial products
 Origination Details
 Contracts Drawn
 Securities issued
 1st Buyer g...
 Money Markets
 Purchase and sale of
short term debt (<1yr)
 Loans
 Treasury bills
 Purchases are made to
help other ...
 Mortgage Markets
 Making long term
loans for buying
property and earning
interest profits
 Sales are made to
increase ...
 Contemporary – A comparative analysis of the
changes in the global economy over 50 years
 Capitalism – Private owners c...
 Economics is social science that focuses on the
process of producing and exchanging
goods/services on two levels
 Micro...
15
 The American Heritage® Dictionary of the
English Language (2009), Fourth Edition,
Houghton Mifflin Company. Retrieved
Se...
 Alison: A New World of Free Certified
Learning (2014). Retrieved March 26, 2014,
from http://www.alison.com
 Economics ...
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HHM Finance Night - Economics 101

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General information for basic understanding of the Economic System.

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HHM Finance Night - Economics 101

  1. 1. 1 Economics 101 Presented by: Jennoa R. Graham, Ph.D. Friday, April 4, 2014
  2. 2.  Economics – A social science that focuses on the process of producing and exchanging goods/services  Microeconomics – Focus on a single/small portion of the whole economy; one company or one city  Macroeconomics – Focus on the whole economy; entire country or entire world 2
  3. 3.  Tangible – Product that you can touch  Clothing  Car  Food  Intangible – Services that you cannot touch  Electricity  Indoor Plumbing  Knowledge/Skills 3
  4. 4.  The Economic System – Macroeconomic decisions of  Products  What should be produced?  How much should be produced?  How/Where the products will be distributed?  Services  What services are needed?  How will these services be performed?  Where will these services be available? 4
  5. 5.  Supply – Quantity of goods/services available for sale  Demand – Quantity of buyers wanting to purchase goods/services available for sale  The Market – manipulation of supply and demand to meet micro and macro needs of the Economic System; must be managed 24/7 and impacts the world economy 5
  6. 6.  Supply and Demand Graph  The Economic System  The Competitive Market System  The Financial Market System  Other Economies 6
  7. 7. 7 P = Price; Q = Quantity; D = Demand; S = Supply As Demand goes down; quantity available for sale stays high (fewer sales). D Shift left = decrease D Shift right = increase S Shift none = constant As Supply goes up; quantity available for sale stays high (inventory on hand). Best Price
  8. 8.  Traditional  Based on Family and Community Interaction  Heavy dependence on customs and rituals  Market (Pure)  Based on the selection AND consumption of goods and services from Individual Consumers  Command (Planned)  The government decides ALL aspects of Consumer selection and consumption  Mixed  The government decides SOME aspects of Consumer selection and consumption 8 http://www.slideshare.net/Geckos/the-four-types-of-economic-systems-presentation
  9. 9.  Form when many Producers/Manufacturers compete with one another to offer products to a large group of Consumers for PROFIT 9
  10. 10.  Primary  Starting line for financial products  Origination Details  Contracts Drawn  Securities issued  1st Buyer gets 1st Dibs  Secondary  Buyers and Sellers resell financial products to 3rd Party  Stock Exchange  3rd Party assumes all contract risk/liability 10  “Financial products, including the supply of credit, mortgages, company shares and insurance, are bought and sold in primary and secondary financial markets.” (Economics Online)
  11. 11.  Money Markets  Purchase and sale of short term debt (<1yr)  Loans  Treasury bills  Purchases are made to help other banks short on cash  Sales are made to increase available cash on hand  Capital Markets  Purchase and sale of long term debt (>1yr)  Stocks (stock exchange)  Bonds  Company shares  Purchases are made in hopes to sell at a profit  Sales are made to make a profit or avoid large losses 11
  12. 12.  Mortgage Markets  Making long term loans for buying property and earning interest profits  Sales are made to increase available cash on hand  Or avoid large losses on high risk loans  Insurance Markets  Transferring risk from one party to another  Transfer is made in hopes that premium income is greater than claims paid – profit earned 12
  13. 13.  Contemporary – A comparative analysis of the changes in the global economy over 50 years  Capitalism – Private owners control the Market Economy (see slide # 8)  Participatory – Production and distribution of goods are provided by the public  Gift – Goods and services are distributed with out expectation of return or profit  Barter – Goods and services are exchange for other goods and services with no monetary/currency 13 http://en.wikipedia.org/wiki/Economic_system
  14. 14.  Economics is social science that focuses on the process of producing and exchanging goods/services on two levels  Micro = Small  Macro = Large  Supply and Demand determines price of goods and services for Consumers  Stock Exchange is a finance product that is part of the Secondary Financial Market  There are many different type of ecomonies 14
  15. 15. 15
  16. 16.  The American Heritage® Dictionary of the English Language (2009), Fourth Edition, Houghton Mifflin Company. Retrieved September 9, 2013, from http://www.thefreedictionary.com  The Four Types of Economic Systems (2008), by Brian Coil, High School Teacher at Armstrong School District. Retrieved March 27, 2014, from http://www. slideshare.net 16
  17. 17.  Alison: A New World of Free Certified Learning (2014). Retrieved March 26, 2014, from http://www.alison.com  Economics Online (Unknown). Retrieved March 27, 2014, from http://www.economicsonline.co.uk  Wikipedia: Economic System (2014). Retrieved March 27, 2014, from http://www.wikipedia.org 17

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