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What Is Economics?


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What Is Economics?

  1. 1. Welcome to Economics
  2. 2. What is Economics? “ Economy is the art of making the most of life.” - Gary Becker 1992 Nobel Prize Winner in Economics
  3. 3. Economics: <ul><li>The study of how people try to satisfy their wants through the use of scarce resources </li></ul><ul><li>Need vs. Want </li></ul><ul><ul><ul><li>NEED = Basic requirement for survival </li></ul></ul></ul><ul><ul><ul><li>WANT = A way of expressing a need </li></ul></ul></ul><ul><li>I need food to survive. I want a piece of pizza </li></ul>
  4. 4. II. Factors of Production <ul><li>Land </li></ul><ul><ul><li>All natural resources that are used to produce goods and services. </li></ul></ul><ul><li>Labor </li></ul><ul><ul><li>Any effort a person devotes to a task for which that person is paid. </li></ul></ul><ul><li>Capital </li></ul><ul><ul><li>Any human-made resource that is used to create other goods and services. </li></ul></ul><ul><li>Entrepreneurship </li></ul><ul><ul><li>The act of a person assembling the factors to make new goods and services. </li></ul></ul>
  5. 6. Factors of Production for Making Pizza Capital Labor Land