Here are the slides used in the contact sessions and voice-over PPT lecture video's. Watch the video on YouTube and then use your textbook to supplement the slides to make your own set of notes. Chapter 1 is about the key ideas of scarcity, choice and opportunity cost and illustrating it with a production possibilities curve.

1. ECONOMICS FOR SOUTH AFRICAN STUDENTS
CHAPTER 1:
WHAT IS ECONOMICS?
ECON-1

2. THE ECONOMY VS.
Studying Economics

3. HOW WOULD YOU DESCRIBE
THE STUDY OF ECONOMICS?
Needs
Resources
Scarcity
Choice
Opportunity cost

4. ECONOMISTS LIKE GRAPHS
Scarcity, choice and opportunity cost can be illustrated with
the production possibilities frontier.
• What is the production possibilities frontier?
• The example of the production of fish and potatoes...
Option Fish (baskets per
day)
Potatoes (kg per day)
A 0 100
B 1 95
C 2 85
D 3 70
E 4 40
F 5 0

5. FIGURE 1-1
Option Fish
(baskets per
day)
Potatoes (kg
per day)
A 0 100
B 1 95
C 2 85
D 3 70
E 4 40
F 5 0

6. FIGURE 1-1
Cannot be produced
with available resources
Society has to choose:
C = 2 baskets fish and 85kg potatoes
D = 3 baskets fish and 70 kg potatoes
What is the opportunity cost of
One more basket of fish?

7. THE SCIENCE OF ECONOMICS
Social science...
• There are laws – it is differs from the natural sciences
• LAW of DEMAND!
• What is demand again?
• Ceteris paribus

8. 2 HOOFDELE VAN DIE STUDIE VAN
EKONOMIE
Economics
MACRO
The economy
as a whole
MICRO
Individual
participants