Economics 101 was presented by Jennoa R. Graham, Ph.D. on April 4, 2014. The presentation covered key concepts in economics including microeconomics focusing on small portions of the economy and macroeconomics focusing on entire countries or the world. It discussed tangible goods that can be touched versus intangible services and how supply and demand impact price in the economic system and financial markets. The presentation also reviewed different types of economic systems including traditional, market, command, and mixed systems.

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Economics 101
Presented by: Jennoa R. Graham, Ph.D.
Friday, April 4, 2014

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
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3.  Tangible – Product that you can touch
 Clothing
 Car
 Food
 Intangible – Services that you cannot touch
 Electricity
 Indoor Plumbing
 Knowledge/Skills
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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?
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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
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6.  Supply and Demand Graph
 The Economic System
 The Competitive Market System
 The Financial Market System
 Other Economies
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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.  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
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http://www.slideshare.net/Geckos/the-four-types-of-economic-systems-presentation

9.  Form when many Producers/Manufacturers
compete with one another to offer products to a
large group of Consumers for PROFIT
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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
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 “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.  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
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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
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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
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http://en.wikipedia.org/wiki/Economic_system

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
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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
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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
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