Chapter 1 - Preview From the book, “Trade-Offs: Resources are scarce. Time is scarce. Sometimes...
If you can't read please download the document
Chapter 1 - Preview From the book, “Trade-Offs: Resources are scarce. Time is scarce. Sometimes it seems as if you have a million things to do, and you
Chapter 1 - Preview From the book, Trade-Offs: Resources are
scarce. Time is scarce. Sometimes it seems as if you have a million
things to do, and you just dont know what to do first. You may have
many alternatives to select from, and you have to make choices but
which choice is the right one? One choice may prevent another.
Believe it or not, the study of economics will help you become a
better decision maker because it helps you develop a way of
thinking about trade-offs and decision making.
Slide 2
Chapter 1 What is Economics? ***Brainstorm in your group what
your definition economics is and write it on the sheet in the
back*** ***What do you think TINSTAAFL stands for*** ***As a group,
read TINSTAAFL on pg. 8 of your textbook and discuss examples you
may have seen on why the concept is true.****
Slide 3
What is Economics? Economics is the study of the ways in which
societies use the limited resources available to them to satisfy
the unlimited wants of their citizens. ***Look at the picture of
the shoes in your book. Then, look at the shoes your peers are
wearing. Is anyone wearing the exact same pair of shoes? What do
you notice about the picture? What do you notice about your peers
shoes? What determines the price of shoes?*** ***Who wants a
Snickers bar?***
Slide 4
What is Economics? Economic decisions do not happen in a
vacuum. Certain subjects or experiences youve had to this day
affect economic decisions. Virtually everything affects the
economy. ***Brainstorm with your group about 5 variables that can
affect our local economy of Baldwin.***
Slide 5
Section 1 Scarcity and the Science of Economics Key terms to
remember to understand economics!!! scarcity factors of production
land capital financial capital labor entrepreneur economics
Slide 6
Section 1 Scarcity and the Science of Economics Scarcity It
exists when there are limited resources available to satisfy
unlimited wants and needs. In business: Resources are items used in
production land, labor, capital, and entrepreneurial skill.
http://www.youtube.com/watch?v=cNyacXICxtk Land Gifts of nature or
natural resources not created by human effort (i.e. oil, trees,
cows, water ***What are some more?*** Land is fixed (limited)
because it can be exhausted (used-up and not return)
Slide 7
Section 1 Scarcity and the Science of Economics Capital Tools
and equipment business and industry use to produce goods and
services (Not monies which is financial capital!!!) Easy way to
remember capital Its something used by business that has already
been produced (i.e. cranes, tools, iPads, etc.) Essentially, its an
investment! ***In your groups, list 5 more and I will put them on
the board.***
Slide 8
Section 1 Scarcity and the Science of Economics Labor Peoples
efforts, abilities, and skills (Everybody except entrepreneurs)
Variables affecting labor: population growth, immigration, famine,
war, and disease (***There are a ton more, but I left out a
specific one. Which one am I thinking about? (Take 2- minutes)***
If your group gets it, doughnuts on me tomorrow morning!!!
Slide 9
Section 1 Scarcity and the Science of Economics Entrepreneurs
Risk-takers in search of profits They start new business Create new
products (goods) or services Their innovation combines land,
capital, and labor in unique ways to earn a living and provide we
as citizens, something that can satisfy our wants.
Slide 10
Section 1 Scarcity and the Science of Economics An
entrepreneur, corporation, government, or an individual must answer
3 basic questions about economics to be successful. What to
produce: clothes, housing, food, transportation, etc. Remember,
resources are scarce and a society cannot have everything How to
produce: use more equipment and less human labor or use more human
labor and less equipment For Whom to Produce: as a society, we must
decide who gets what. (See next slide)
Slide 11
Section 1 Scarcity and the Science of Economics For whom are
these houses produced for. Is there a huge demand for these houses
in Baldwin? For whom are these houses produced for? How many will
be produced? For whom are these houses produced for? Can you make a
lot?
Slide 12
Section 1 Scarcity and the Science of Economics The Meaning and
Scope of Economics Description The process that is concerned with
the 3 Basic Question of economics Additionally, description is
concerned with: o Unemployment, inflation, international trade, the
interaction of business and labor, and the effects of government
spending and taxes (This is a huge topic in the upcoming
Presidential Election between President Obama and Mitt Romney).
Analysis An examination of prices, gaps in income among the 50
states, how taxes affect our behavior to save and spend, etc.
Explanation Making economics more understandable to the people of
our nation and the world. Prediction Determination of the
consequences of a certain economic activity (i.e. Getting you guys
new and more interesting textbooks [Where would the money come
from, how would your folks react, how would it impact business,
etc.?])