Economics

1
Economics.the basics

• Why does scarcity force economic decisions
  resulting in trade-offs opportunity costs?

2
Think about

• What would you be doing if you were not in school
  today?
• What resource(s) do you wish you had more of?
• Resources like time money are limited. These
  limits force us to make decisions about how they
  are used!

3
Economics Defined

• The study of how individuals, businesses
  governments seek to satisfy needs wants.
• Economist study the decisions that economic
  actors make to allocate scarce resources.

4
Economic Actors

• Consumers make economic decisions about needs
  wants.
• What goods services to buy?
• How to allocate limited resources?
• Producers make decisions about what goods
  services to provide to consumers.
• Goods Physical objects that can be purchased
  (Examples_________)
• SERVICES- actions or activities that are
  performed for a fee (Examples__________)

5
Needs vs. Wants

• Needs - Resources that are necessary for
  survival. Examples _________________
• Wants - items we desire but are not essential
  for survival. Examples_______

6
Microeconomics

• Studying the economic behavior decisions of
  small units families, high schools students,
  businesses.
• Example - Chick-fil-a or McDonalds?
• Micro decisions - How to allocate weekend
  spending money?

7
Macroeconomics

• Behavior of entire economies (large units) like
  those of entire countries, state, or region.
• Study the impact of illegal immigration on the
  U.S. economy.
• Macro Decisions - made by government policy
  makers Ex- Provide tax rebates to citizens to
  jump start the economy.