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Published byPenelope Mains
Modified over 3 years ago
© February 2014
The world is scarce in every aspect = Limited Resources However human is a greedy race = Unlimited Wants Allocation is the only option available to satisfy everyone
“You are a very good looking man, but you have limitation in time and money, so you can only have 1 girlfriend.”
YOU HAVE 2 OPTIONS Girl #1: G Good Looking S Smart G Generous A very dear wife Girl #2: S Super Sexy E Easy Going F Fits with your community The ultimate girlfriend
One of them is the cost of choosing the other one VS The Concept of Opportunity Cost Value (Benefit) of the next best alternative forgone.
WORKING Sallary (Y1): $ 10.000 BUSINESS Total Revenue (Y1): $ 500.000 Total Cost (Y1): $ 495.000 Profit (Y1): $ 5.000
WORKING Sallary (Y1): $ 10.000 BUSINESS Profit (Y1): $ 5.000 Sallary (Y2): $ 10.000Profit (Y2): $ 10.000 Sallary (Y3): $ 15.000Profit (Y3): $ 15.000 Sallary (Y4): $ 15.000Profit (Y4): $ 20.000 Sallary (Y5): $ 20.000Profit (Y5): $ 25.000 Sallary (Y6): $ 20.000Profit (Y6): $ 30.000
What is Economics?.
HOW PEOPLE USE LIMITED RESOURCES TO SATISFY UNLIMITED WANTS
Objective: –Explain what economics is and how we make economic choices. Bell Question: –What is a need? What is a want? What is the big difference between.
Scarcity Choice Opportunity Cost Unlimited Wants Limited Resources ScarcityChoice Opportunity Cost.
GRADE 11 IB Economics First Theory Lesson. WHAT IS ECONOMICS? Economics is about how society uses its scarce resources to try to achieve maximum progress.
WHAT YOU WILL LEARN IN THIS CHAPTER chapter: 9 >> Krugman/Wells Economics ©2009 Worth Publishers Making Decisions.
Chapter (1) The Central Concepts of Economics
Ten Principles of Economics
ECONOMICS: THE STUDY OF OPPORTUNITY COST CHAPTER 1.
Session 1 Scarcity and Opportunity Costs Disclaimer: The views expressed are those of the presenters and do not necessarily reflect those of the Federal.
Basic economic concepts
ECONOMICS S S S 1 BASIC CONCEPTS IN ECONOMICS
Basic Economic Concepts. Economics Scarcity Resources are Limited (Money, Time, “Stuff”) Wants are Unlimited (We want everything!) Economics is.
A sole proprietorship is a business owned and operated by one individual Disadvantages: Sole proprietors have unlimited liability and are legally responsible.
Economics Chapters 1&2 What is Economics?.
Intro to Economics Unlimited Wants and Limited Resources.
Economics. Questions What is an economy? A system of consuming and producing.
Defining Profit Lesson 4.52, Understanding Profit (52) Profit = Total Revenue – Total Costs Explicit vs Implicit Costs – Explicit costs require.
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