economics decisions, decisions…. types of economics microeconomics microeconomics (micro =...
TRANSCRIPT
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Economics
Decisions, Decisions…
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Types of Economics
Microeconomics Microeconomics (micro = “small”)Studies the behavior of individual people and firms.
Macroeconomics Macroeconomics (macro = “large”)Studies the behavior of entire economies as a whole.
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What is Microeconomics?
Microeconomics is the study of the economic behavior and decision making of small units, such as individuals, families and businesses.
What does that mean?What does that mean?
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Less Formally...
There is not enough of everything that people want (and need) to go around.
Some people will get things and others will not. That is a fact.
How do we determine who gets How do we determine who gets what?what?
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Decisions: Where to Start? Knowing your Values!! Values: The standards by which
you live; principles. Values = Judgments
Right vs. Wrong Good vs. Bad Important vs. Unimportant
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Decisions (Continued)
Personal ValuesPersonal Values Life Values: Most important to
you in life Work Values: Most important to
you in your work
Social ValuesSocial Values Values held by a great number of
people in a society
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Decisions (Continued)
Goals: What you want to accomplish in your
life Needs/wants, hopes/dreams
Needs: Things you can’t live without
Wants: Things you would like to have but can
live without
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Trade-off
Trade-Off is an alternative we sacrifice when we make a decision.
Opportunity Cost is the next alternative forgone when using a resource.
Your opportunity cost of watching TV might be studying, talking on the phone or maybe even sleeping. But not all 3 -- only the one you value next best.
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Tonight’s Assignment Write at least two paragraphs
about one of your own goals. Assignment should include:
Explanation of your goal Some of your personal values Why is this goal important? What would be your opportunity cost?
Due TomorrowDue Tomorrow