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Economic choices We are faced with choices because we do not have enough productive resources to satisfy all of our wants and needs.
Economics: the study of how we make decisions in a world where resources are limited.
Need or want? Needs Wants Required for survival Things we would like to have
The fundamental economic problem is scarcity (when we do not have enough resources to produce all of the things we would like to have).
Trade-offs Have to take all aspects of transactions into account Ex: you trade money to buy a product
Opportunity cost is the next best thing that you had to give up for the choice you made (includes money and inconveniences)
Fixed costs do not change no matter how much is produced Variable costs change w/the amount produced
Fixed Costs + Variable Costs=Total Cost
Marginal cost is the cost of producing one more unit of output. Businesses look at total and marginal cost to determine final cost
Cost-Benefit analysis Econ. model that compares marginal costs and benefits Benefits should outweigh the costs when making decisions
Your role in the economy U.S. has a market economy Choices you make affect choices businesses make (like what to make or how much to charge)
Market economies are based on capitalism and free enterprise Incentives try to persuade people to make certain economic decision
Making wise choices Rational choice involves consumer’s perceptions Benefits society by making the best use of scarce resources
Citizens must make them every day. Choices occur because resources are limited Needs are required, such as food and shelter Wants make life more.
What is Economics? Chapter 18. The Fundamental Economic Problem : Section 1 *Economics – the study of how we make decisions in a world where resources.
What is Economics? Chapter 18. The Fundamental Economic Problem Section 1.
Economics Unit 1 Notes. Economic Choices Economics: the study of how we make decisions in the world where resources are limited. Scarcity: forces you.
Chapter 18: What is Economics?. Section 1: Economic Problems Economics – The study of how we make decisions based on limited resources. Scarcity – Occurs.
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Standard SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals,
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Economics Introduction: Chapter 18. What economics is not? Economics is not about money. What is money? Where does it come from?
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SCARCITY. SCARCITY- The condition that results from society not having enough resources to produce all the things people would like to have. What comes.
Chapter 18 Notes What is Economics?. Bellwork Chapter 18 Define key terms on page 406.
Thinking on the margin. Economy One who manages a household Much like a household, society must determine how to manage scarce resources to satisfy.
Introduction to Economics How we make decisions in a world where resources are limited.
What is Economics. Main Idea: Scarce resources affect everyone and economists simplify the world to help us understand it.
What is Economics? Lesson 1 Essential Questions: Why and how do people make economic choices? How do economic systems influence societies? It Matters.
Unit One Thinking Like an Economist Fundamental Economic Concepts.
Be prepared to take plenty of notes.. Have ready: All Chapter 18 Notes Textbook open to Ch 18 Pencil & Paper.
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TOPIC 1 INTRODUCTION TO ECONOMICS. QUESTIONS ALL SOCIETIES FACE All societies face three basic economic questions about the use of resources. Societies.
LECTURE # 1: WHAT IS ECONOMICS? The Fundamentals of Economics.
What is economics? SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs.
10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt Goods.
Copyright © 2004 South-Western/Thomson Learning Social Sciences Social Sciences are the study of people….. What are the Social Sciences? Then define Econ.
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TEN PRINCIPLES OF ECONOMICS. ECON202, Maclachlan2 1. People face trade-offs.
Economics. Economic Basics Vocabulary: Economics: Study of how people meet their wants and needs Scarcity: Having a limited quantity of resources to meet.
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Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Economics Economics is the study of how society manages its scarce resources.
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