ECONOMICS

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ECONOMICS

• Chapter 1, Section 1-
• What is economics?

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I. What Is Economics?

• A. Definition-Economics is the study of how
  people and countries choose to use their scarce
  resources to satisfy their unlimited wants and
  needs.

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I. What Is Economics?

• B. Micro-Economics-Is the study of how
  households, companies, and individual markets use
  their resources.

• C. Macro-Economics-Is the study of the economy as
  a whole. Ex. Unemployment, inflation

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II. What Are Economists Concerned With?

• A. Who?
• 1. Consumers-Those who purchase goods and
  services to satisfy their wants and needs.

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II. What Are Economists Concerned With?

• 2. Producers-Those who make the goods and
  services.

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II. What Are Economists Concerned With?

• B. How?
• 1. Goods-An object that can be purchased.

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II. What Are Economists Concerned With?

• 2. Services-Actions or activities that are
  provided for a fee.

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III. Economic Resources

• A. Resource-Anything used to make or obtain a
  need or want.
• B. Factors of Production-Resources which are used
  to produce goods and services.
• 1. Natural
• 2. Human
• 3. Capital
• 4. Entrepreneurship

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III. Economic Resources

• 1. Natural Resources-Goods provided by nature
  that can be used to produce goods and services.
  Ex. Oil, coal

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III. Economic Resources

• 2. Human Resources-Effort that humans exert in
  providing goods and services. Ex. Typing,
  computer technician

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III. Economic Resources

• 3. Capital Resources-Goods that have been
  manufactured and are used to produce other goods
  and the money to purchase them. Ex. Hammer, cash
  register

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III. Economic Resources

• 4. Entrepreneurship-The risk one takes in
  starting a new business or introducing a new good
  or service to the market. Ex. Film producer,
  travel agent