Presentation on theme: "What is Economics?. Main Idea: Scarcity forces us to make choices. We can’t have everything we want, so we are forced to choose what we want most."— Presentation transcript:
What is Economics?
Main Idea: Scarcity forces us to make choices. We can’t have everything we want, so we are forced to choose what we want most.
Scarcity Economics Need Want Factors of production Land Capital Financial capital Labor Entrepreneur Production Gross Domestic Product (GDP)
What is the fundamental economic problem? List and briefly describe the basic economic questions every society must answer: A B C
List and briefly describe the 4 factors of production: A B C D
List and briefly the describe the key elements of economics: A B C D
Create a chart giving 5 examples of how scarcity has affected your life. The chart should include your examples and how you adjusted to the situation. (two columns)
Main Idea: An economic product is a good or service that is useful, relatively scarce, and exchangeable.
Economic product Good Consumer good Capital good Service Value Paradox of value Utility Wealth market
Factor market Product market Economic growth Productivity Division of labor Specialization Human capital Economic interdependence
What is the relationship between scarcity, value, utility and wealth? Draw chart: Circular Flow of Economic Activity on page 15 Explain why productivity is important to economic growth
3 columned chart to include: a. list of specialized workers and capital used in our school (3 each). b. Tell whether productivity would go up or down if these workers or capital were not available. c. Explain why or why not
Main Idea: Trade-offs are present whenever choices are made.
Trade off Opportunity cost Production possibilities Frontier Cost benefit analysis Free enterprise economy Standard of living
What is the relationship between trade offs and opportunity costs? What are the decision making strategies that economists use? Why is the study of economics important to the free enterprise system?
Make a list of at least 5 possible uses of your time that will be available to you after school today. Put a check mark by the ones you will actually do. Describe the opportunity costs of your decision will be. How will your decision affect those around you?
Economic Systems and Decision Making
Main Idea: An Economic System is a set of rules that governs what goods and services to produce, how to produce them, and for whom they are produced.
Economy Economic system Traditional economy Command economy Market economy
Copy chart page 38
Give an example of an economic activity from a traditional economy that is seen in today’s market economy. How is this activity important for the economy
Main Idea: The social and economic goals of the United States include economic freedom, economic security, and economic equity
Social Security Inflation Fixed income
List the 7 major goals of the United States economy What is the conflict of raising minimum wage?
Try to think of an example of false advertisement that you have seen first hand or give an example of one that could happen. How does this generate support of economic equity?
Main Idea: Under capitalism, the basic economic decisions are made through the free interaction of individuals looking out for their own best interests.