PART 1: INTRODUCTION TO ECONOMICS

1
PART 1 INTRODUCTION TO ECONOMICS
AGRICULTURAL ECONOMICS

• WK 1-1 ECONOMIC DEFINITIONS
• WK 1-2 ECON ?S PROCESSES
• WK 1-3 ECONOMIC SYSTEMS
• WK 1-4 BUSINESS FORMS

2
THREE ECONOMIC QUESTIONSTHREE ECONOMIC PROCESSESS

• TEXTBOOK READING

3
LESSON OBJECTIVES
WK 1-2 ECON ?S PROCESSES

• AFTER COMPLETING THIS LESSON THE STUDENT SHOULD
  BE ABLE TO
• Discuss the three economic questions. (output,
  input, distribution)
• Discuss the three economic processes(traditional,
  command, market)

4
I. ECON ?s EVERY SOCIETY MUST ANSWER
58
Discuss the Three Economic Questions.
OBJ
1
WHAT
A. OUTPUT QUESTION
1. PRODUCTS WILL BE PRODUCED
BUTTER
GUNS
MACRO - NATL
PRISIONS
SCHOOLS
MACRO - STATE
CORN
SOYBEANS
MICRO - FARM
ProductionPossibilityFrontier
Butter
Guns
5
2. QUANTITY WILL BE PRODUCED
Discuss the Three Economic Questions.
OBJ
1
HOW MANY GUNS
HOW MUCH BUTTER
FOOD STAMPS
B1-BOMBERS
WELFARE
NUKE SUBS
6
Discuss the Three Economic Questions.
OBJ
1
B. INPUT QUESTION
HOW / WHERE
1. ...WILL RESOURCES BE USED
2. ...WILL VARIOUS METHODS BE USED
7
Discuss the Three Economic Questions.
OBJ
1
B. INPUT QUESTION
HOW / WHERE
3. ...WILL TECHNOLOGY BE USED
4. ...WILL PRODUCTION/PROCESSING TAKE PLACE
CIN, ST LOUIS
FL, CA, TX, AZ
WATER
CLIMATE
8
Discuss the Three Economic Questions.
OBJ
1
C. DISTRIBUTION QUESTION
WHO
1. RECEIVES THE PRODUCT
2. RECEIVES THE PROFITS
3. QUANTITY OF TRADE
9
4. MEANS OF DIVISION
Discuss the Three Economic Questions.
OBJ
1
PRICES MAJORITY RULE 1st COME-1st SERVED SHARE
EQUALLY
LOTTERY FORCE
DICTATOR
PERSONAL CHAR
10
II. 3 ECON PROCESSES ANSWER 3 QUEST
Discuss The Three Economic Processes
OBJ
2
TRADITIONAL PROCESS
A. OUTPUT QUESTION
SURVIVAL
1. PRODUCTS WILL BE PRODUCED
SURVIVAL
2. QUANTITY WILL BE PRODUCED
11
Discuss The Three Economic Processes
OBJ
2
B. INPUT QUESTION
TRADITIONAL PROCESS
AVAILABLE
1. WILL RESOURCES BE USED
HIGH LABOR
2. WILL VARIOUS METHODS BE USED
LITTLE
3. WILL TECHNOLOGY BE USED
4. WILL PRODUCTION TAKE PLACE
LOCALLY
12
Discuss The Three Economic Processes
OBJ
2
C. DISTRIBUTION QUESTION
TRADITIONAL PROCESS
1. RECEIVES THE PRODUCT
SHARED
2. RECEIVES THE PROFITS
LITTLE
3. QUANTITY OF TRADE
IN COMMUNITY
13
II. 3 ECON PROCESSES ANSWER 3 QUEST
Discuss The Three Economic Processes
OBJ
2
COMMAND PROCESS
A. OUTPUT QUESTION
1. PRODUCTS WILL BE PRODUCED
DESIGNATED
QUOTAS
2. QUANTITY WILL BE PRODUCED
14
Discuss The Three Economic Processes
OBJ
2
COMMAND PROCESS
B. INPUT QUESTION
DESIGNATED
1. WILL RESOURCES BE USED
HIGH LABOR
2. WILL VARIOUS METHODS BE USED
OUTDATED
3. WILL TECHNOLOGY BE USED
DESIGNATED
4. WILL PRODUCTION TAKE PLACE
15
Discuss The Three Economic Processes
OBJ
2
COMMAND PROCESS
C. DISTRIBUTION QUESTION
1. RECEIVES THE PRODUCT
RATIONED
2. RECEIVES THE PROFITS
DESIGNATED
3. QUANTITY OF TRADE
MODERATE
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II. 3 ECON PROCESSES ANSWER 3 QUEST
Discuss The Three Economic Processes
OBJ
2
A. OUTPUT QUESTION
MARKET PROCESS
1. PRODUCTS WILL BE PRODUCED
CONSUMER
2. QUANTITY WILL BE PRODUCED
MKT DEMAND
17
Discuss The Three Economic Processes
OBJ
2
MARKET PROCESS
B. INPUT QUESTION
1. WILL RESOURCES BE USED
LEAST COST
2. WILL VARIOUS METHODS BE USED
EFFICIENT
INNOVATIVE
3. WILL TECHNOLOGY BE USED
LEAST COST
4. WILL PRODUCTION TAKE PLACE
18
Discuss The Three Economic Processes
OBJ
2
C. DISTRIBUTION QUESTION
MARKET PROCESS
1. RECEIVES THE PRODUCT
CONSUMERS WITH MONEY
2. RECEIVES THE PROFITS
RES OWNER
Wages/Salary
Int/Div
Profits
Rent
3. QUANTITY OF TRADE
EXTENSIVE
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SUMMARY
WK 1-2 ECON ?S PROCESSES

• A. EVERY SOCIETY MUST ANSWER THREE BASIC ECONOMIC
  QUESTIONS
• OUTPUT QUESTION
• INPUT QUESTION
• DISTRIBUTION QUESTION

B. SOCIETIES SOMETIMES USES DIFFERENT PROCESSES
TO ANSWER THE THREE ECONOIMIC QUESTIONS
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SELF ASSESSMENT
WK 1-2 ECON ?S PROCESSES
A

• ___1. CONSUMER DETERMINE WHAT
• ___2. SURVIVAL DICTATES WHAT
• ___3. PRODUCTION IS SHARED
• ___4. DESIGNATED RESOURCES
• ___5. ANSWERS 3 ECONOMIC ?S
• ___6. PREDOMINATES IN THE US
• ___7. OUTDATED TECHNOLOGY
• ___8. ALLOCATION OF RESOURCES
• ___9. VERY LITTLE TRADE
• ___10. INNOVATIVE TECHNOLOGY

B
PROCESSES A. MARKET B. TRADITIONAL C. COMMAND
D. ALL PROCESSES E. NONE
B
C
D
A
C
D
B
A
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NEXT ECONOMIC TOPIC

• THREE ECONOMIC SYSTEMS