Upload
graceguardian
View
224
Download
0
Embed Size (px)
Citation preview
8/10/2019 economic classwork
1/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
1.1 The basic economicproblem
Lesson 1
8/10/2019 economic classwork
2/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Machinery Natural Resources
Resources are scarce
8/10/2019 economic classwork
3/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
PeopleLand
Resources are scarce
8/10/2019 economic classwork
4/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Family A Family B
8/10/2019 economic classwork
5/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Why do we want what we want?
Think of five things you want Discuss with your partner the ost
popular reasons for wanting goods andservices!
The creation of wants
WANT REASON
BICYCLE MY FRIEND HAS ONE
8/10/2019 economic classwork
6/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Production
"sing inputs #resources$ to ake outputs #goods andservices$ to satisfy the needs and wants of consu ers
8/10/2019 economic classwork
7/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Factors of production Natural resources % land Man& ade resources % capital
'u an skills and effort % la(our )usiness know&how % enterprise
8/10/2019 economic classwork
8/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Consumption
"sing up goods and services #products$ to satisfyconsu ers* needs and wants
8/10/2019 economic classwork
9/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
So we all ha!e to ma"e choices
There is a li ited a ount of resources such as raw aterials+achines+ factories and skilled workers! )ut there are a nu (erof different ways in which they can (e used!
Resource allocation therefore involves deciding how (est to usescarce resources to satisfy as any needs and wants as possi(le
C H O I C E C H O I C E
8/10/2019 economic classwork
10/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Lesson #
1.# The basic economicproblem continued
8/10/2019 economic classwork
11/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
Choice,i ilarly+ people and govern ents only have a li ited a ountof oney (ut have any needs and wants to satisfy
$100
-ood? .ntertain ent?
/lothing?
Defence? 'ealth care?
Roads?
$100bn
8/10/2019 economic classwork
12/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
$pportunity cost0pportunity cost is the cost of choice
What would you (uy with 122RM)? 'ow should the govern ent spend ",3452 illion? What occupation will you choose when you finish your studies? 'ow should a new (usiness invest ",342 illion? ,hould we conserve ore natural resources?
and what are the next best alternatives foregone?
8/10/2019 economic classwork
13/13
Brian Titley 2012: this may be reproduced for class use solely for the purchasers institute
The basic economic problem
'u an wants are unli ited (ut resources are scarce