What is Economics?

1
What is Economics?

• Chapter 1

2
Learning Objective

• I can define economics and understand what causes
  the study of economics to exist

3
The Basic Problem in Economics

• Define Economics
• Microeconomics
• Macroeconomics.
• Scarcity 2 major scarce items
• Difference between Scarcity and Shortages

4
Learning Objective

• I know and can describe each of the Factors of
  Production

5
The Factors of Production

• Land Gifts of Nature
• Labor Goods? Services?
• Capital machines, buildings, tools used to make
  goods.
• Increases Productivity money counter
• Entrepreneurship individuals start new
  businesses, intro new products and processes, and
  improve management techniques.
• Technology use of land, labor, and capital that
  produces goods and services more efficiently.
• Assembly Line

6
Learning Objective

• I understand the importance of trade-offs and can
  identify opportunity cost in a decision
• I can interpret a production possibilities curve

7
Trade-Offs

• Define Trade-Offs
• Sacrificing one good or service to purchase or
  produce another
• Opportunity Cost
• Value of the next best alternative that was given
  up in the decision

8
Production Possibilities Curve