economics – the study of how people choose to use scarce resources to satisfy their wants
TRANSCRIPT
![Page 1: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/1.jpg)
Module 1AEconomics and Choices
Economics – The study of how people choose to use scarce resources to satisfy their wants.
![Page 2: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/2.jpg)
Module 1AEconomics and Choices
*8 Principles of Economic Thinking* Know them and be able to distinguish between them
![Page 3: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/3.jpg)
1.Everything Has A Cost
2. People Choose For Good Reasons
Module 1AEconomics and Choices
![Page 4: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/4.jpg)
3. Incentives Influence People’s Choices
4. Economic Systems Influence People’s Incentives and Choices
Module 1AEconomics and Choices
![Page 5: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/5.jpg)
5. People Gain From Voluntary Trade
6. People’s Choices Influence The Value Of A Good Or Service
Module 1AEconomics and Choices
![Page 6: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/6.jpg)
7. People’s Choices May Have Unintended Consequences
8. Choices Made Today Influence What Happens Tomorrow
Module 1AEconomics and Choices
![Page 7: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/7.jpg)
Module 1AEconomics and Choices
Economize – People choose what they believe has the best combination of costs and benefits
![Page 8: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/8.jpg)
Module 1AEconomics and Choices
Goods – Things that you can buy (Typically things you can touch) – A computer.
Services – Work that you can buy (know how / knowledge, etc.) – Computer repairs.
![Page 9: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/9.jpg)
Module 1BScarcity: The Basic Economic Problem
Scarcity – The lack of enough resources to satisfy wants. (limited resources & unlimited wants)
![Page 10: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/10.jpg)
![Page 11: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/11.jpg)
Module 1BScarcity: The Basic Economic Problem
Resources (Factors of Production)
Land
Labor
Capital
Entrepreneurship
![Page 12: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/12.jpg)
Module 1BScarcity: The Basic Economic Problem
Opportunity Cost – The value of the next best alternative not chosen (What was given up).
![Page 13: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/13.jpg)
Module 1C Economists and Their Tools
Macroeconomics - The study of the behavior of the economy as a whole (The big picture! Big Mac!)
Microeconomics – The study of specific factors of the economy (The little picture Microscopic)
![Page 14: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/14.jpg)
Module 1C Economists and Their Tools
Positive Economics – The way things are. Questions of fact, not value. Example - The unemployment rate is 5.5%.
Normative Economics – The way things ought to be. Questions based on values and beliefs. Example – I think minimum wage should be $10.00 an hour.
![Page 15: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/15.jpg)
Module 1C Economists and Their Tools
Economic model – A simplified representation of a complex activity, system, or problem.
![Page 16: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/16.jpg)
-
Module 1DScarcity, Choices, and Opportunity Costs
Production Possibilities Curve (PPC) A model used by economists to illustrate scarcity on an economy. PPC Assumptions:
- Resources are fixed- All resources are fully employed- Only 2 things can be produced- Technology is fixed
![Page 17: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/17.jpg)
Module 1DScarcity, Choices, and Opportunity Costs
Trucks vs’ TV’s (Page 14 & 15) PPC’s show:
-How scarcity affects production possibilities
-Trade-off among choices
- Opportunity cost of choices
![Page 18: Economics – The study of how people choose to use scarce resources to satisfy their wants](https://reader036.vdocument.in/reader036/viewer/2022082710/56649dc75503460f94abc8d8/html5/thumbnails/18.jpg)
PRODUCTION POSSIBILITIES- Create a new and unique Production Possibilities chart similar to the chart on Activity Sheet 1.5.
- Graph the data from your chart.
- Develop 3 questions related to your data (See Activity sheet 1.5 for ideas)
* correctly answer your questions!