The document defines key economic concepts through a series of examples and definitions. It begins by stating that economics is the study of how people make choices given their social and political circumstances. It then outlines Mr. H's definition of the four main questions of economics: what to produce, how much to produce, how to produce it, and who to produce it for. The document proceeds to define categories of goods and services, factors of production, and sources of income using examples and diagrams to illustrate each term.

1. First Definitions

2. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
Textbook Definition:
Economics is the study of
how human beings
coordinate their wants and
desires, given the decision-
making mechanism, social
customs, and political
realities of the society.
Mr. H’s Definition:
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.

3. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
So what do
we
produce?
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.

4. Every
thing!

5. Example - What do we produce?
China’s imports a lot of
mineral fuel (oil), organic
chemicals, iron and steel,
ores, copper, cotton, and
wood, cars, paper,
medical instruments,
plastics, machinery,
electrical machinery,
aircraft, cotton, food
stuffs.
USA imports a lot of office
equipment,
telecommunication
equipment, clothes,
furniture, shoes, cars,
purses, iron, steel, paper
products, toys, building
supplies, clocks, watches,
chemicals, and a bunch of
random crap that breaks
really easy.

6. We classify (分类) what we make into
different categories (类别)
(4 main categories)
1.) Consumption goods and
services
2.) Capital goods
3.) Government goods and
services
4.) Export goods and
services

7. 1.) Consumption
goods and services
Things We Produce:
– stuff bought by
individuals and used to
provide personal
enjoyment and help make
your life better.

8. Most things you think about buying
in stores or restaurants or online to
use for yourself.

9. 1.) Consumption goods
and services
Things We Produce:
2.) Capital goods – goods bought by business to
increase their productive
resources.

10. Things used to make other
things

11. Some are better then others
though

12. It’s not the things inside but
the machine itself.

13. And it’s typically used by
businesses.

14. 1.) Consumption goods
and services
Things We Produce:
2.) Capital goods
3.) Government
goods and services
– stuff bought by governments.

15. Governments obviously buy
things that we normal people
don’t.

16. Or it’s services they provide for
us

17. 1.) Consumption goods
and services
Things We Produce:
2.) Capital goods
3.) Government goods
and services
4.) Export goods
and services
– stuff produced in one country
and sold in other countries.

18. Not everything made in a country is
used by the people in that country, so
this sometimes is a different item to
discuss.

19. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
So how do
we
produce?
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.

20. How We Produce:
We use Factors of Production to make things.
The things that we use to make other things are
broken into 4 main categories too…
1.) Land
2.) Labor
4.) Entrepreneurship
3.) Capital

21. How We Produce:
1.) Land – natural resources from the earth.
Factors of Production

22. So taking land like this…

23. And using it and making it into
this.

24. How We Produce:
1.) Land
2.) Labor – Work time and effort used to
produce stuff.
Factors of Production

25. Work, work work….

26. How We Produce:
1.) Land
2.) Labor
3.) Capital – tools, instruments, machines, buildings,
anything that is now used to produce
goods and services.
Factors of Production

27. Machines…

28. Even buildings can be
capital.

29. How We Produce:
1.) Land
2.) Labor – Work time and effort used to produce stuff.
3.) Capital – tools, instruments, machines, buildings, anything
that is now used to produce goods and services.
Human Capital – knowledge and skills of people have
and gain in making stuff.
Factors of Production

30. Go to school wearing this
stupid uniform…

31. So you don’t end up wearing a
uniform like this to work.

32. Factors of Production
How We Produce:
1.) Land
2.) Labor
3.) Capital
4.) Entrepreneurship – the risk takers, business
owners and people that take
land, labor, and capital to
produce things.

37. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
So for
whom do
we
produce?
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.

38. We make things for those that can buy things:
That means people have to get money somehow and there are
different ways to do this
We break this up into 4 (5) different categories as well so we
can use them in equations later too
1.) Rent
3.) Interest 利息
2.) Wages
*5.) Government
4.) Profit (or loss)

39. For Whom do we Produce:
1.) Rent – income paid for the use of land.

40. Rent can be from a unit…

41. Or actual land.

42. 1.) Rent
2.) Wages – income paid for the services of labor.
For Whom do we Produce:

43. The workers get paid a wage.

44. Some more then others and
differently from others, but for now
it’s all just wages.

45. 1.) Rent
2.) Wages
3.) Interest 利息 – income paid for the use of capital.
For Whom do we Produce:

47. 1.) Rent
2.) Wages
3.) Interest 利息
4.) Profit (or loss) – income earned by an entrepreneur for
running a business.
For Whom do we Produce:

49. 1.) Rent
2.) Wages
3.) Interest 利息
4.) Profit (or loss)
*5.) Government – public goods and other goods and
services used primarily by governments.
For Whom do we Produce:

50. So to summarize…

51. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
Vocabulary to use: Mr. H’s Definition:
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.

52. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.
Vocabulary to use:
1.) Consumption goods and
services
2.) Capital goods
3.) Government goods and
services
4.) Export goods and
services

53. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.
Vocabulary to use:Vocabulary to use:
2.) Labor
3.) Capital
1.) Land
4.) Entrepreneurship

54. What Economics is
Economics is a social science, attempting to study
people, their behavior, and the choices that they make.
1.) What to produce.
2.) How much to produce.
3.) How to produce it.
4.) Who to produce it for.
Vocabulary to use:
1.) Rent
3.) Interest 利息
2.) Wages
*5.) Government
4.) Profit (or loss)

55. The End.
Thank you.
