This document provides definitions and examples for several key economic concepts in 3 languages:
1) It defines "podium" in German, Spanish, French, Italian, and Chinese.
2) It then outlines chapters from an economics textbook, including an introduction to scarcity, factors of production, and 10 principles of economics.
3) Examples of the 10 principles are given, such as opportunity costs, rational decision making, and thinking at the margin. Scarcity, choice, competition, and allocation are highlighted.
This presentation discusses the following topics
Adam Smith
What is Economics
Need and Want
Economic Problem
Scarcity
Factors of Problem
Opportunity cost
Choice
Types of Products
This presentation discusses the following topics
Adam Smith
What is Economics
Need and Want
Economic Problem
Scarcity
Factors of Problem
Opportunity cost
Choice
Types of Products
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1. Podium
• German – Podest
• Spanish – Podio
• French – Podiu
• Italian – Podio
• Norwegian-?
• Chinese - 讲台
2. THE LANGUAGE OF ECONOMICS
Chapter 1 Ten Principles of Economics
(pp. 3-18 in text)
Chapter 2 Thinking Like an Economist
(pp. 19-34 in text)
Chapter 2 Appendix: Math and Graph
Review
(pp. 37-45 in text)
3. p. 5 in packet
I. Introduction: What is economics?
• Economics - the
study of the choices
that individuals
make given the
presence of scarcity.
• SCARCITY - limited
resources but
unlimited wants
• Economics is a
social science
6. Types of Resources (Factors of Production), p. 5
• 2) Nonhuman animal resources
• 3) Labor: Human Capital (Physical and Mental)
• 4) Capital: Resources produced using land and labor (Man-made)
• 5) Technology
• 6) Entrepreneurial Ability
• 1) Land: Water, Air, Oil, land, natural resources
We combine (1)-(6) to
produce commodities -
economic goods and
services
7. II. Ten Principles of
Economics, p. 6
Principle #1: People Face Trade-offs
• Scarcity forces us to make choices.
necessitates rationing.
Scarcity
• Economics - The study of how human beings
coordinate their wants. (How society manages its
scarce resources.)
• The economy- the institutional structure through
which individuals in a society coordinate their
diverse wants
8. The economy will
determine the
answers to three
questions
– all involving
trade-offs:
1) What, and how much, to produce?
2) How to produce?
3)For whom to produce?
Issues of ALLOCATION
9. Efficiency and Equality, p. 6
• Efficiency – the property
of society getting the
most it can from its
scarce resources (the size
of the economic “pie”)
• Equality – the property of
distributing economic
prosperity uniformly
among the members of
society (How the
economic pie is sliced)
11. p. 6
Principle #2: The cost of
something is what you give up to
get it.
OPPORTUNITY COSTS
12. • Opportunity Cost: highest valued
benefit forgone due to choosing an
alternative.
• Opportunity cost of being in college?
• NOT the sum of ALL forgone activities
• Costs (and benefits) are subjective.
14. Principle #3: Rational
People (Weigh Costs and
Benefits) and Think at the
Margin, p.7
Rational People (decision-makers)–
systematically and purposefully do the
best they can to achieve their objectives
16. Principle #3: Rational
People (Weigh Costs and
Benefits) and Think at the
Margin, p.7
Rational People (decision-makers)–
systematically and purposefully do the best
they can to achieve their objectives
A. We weigh costs and benefits
• What are the costs of attending class today?
• Tuition?
• Sunk cost – has already been incurred and
can’t be recovered
• What are the benefits of attending class
today?
18. B. Individuals Make Decisions at the Margin
Economic thinking is marginal thinking.
Examples:
• Deciding to attend class
• Food consumption choices
19. Do you have a
boyfriend/girlfriend/significant other?
A. YES
B. NO
C. UNCERTAIN
21. The Economic Decision Rule:
• If the marginal (incremental)
benefit (MB) of an action
exceeds the marginal
(incremental) cost (MC), do it.
If the MC > MB, don't do it.
• We do things to the point
where:
MB=MC
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