Unit 1: Basic Economic Concepts

Slides:



Advertisements
Similar presentations
What did you do to earn some money this summer?
Advertisements

1. Unit 1: Basic Economic Concepts “Econ, Econ” Econ 2.
AP MACROECONOMICS MR. LIPMAN
Goods vs. Services Give examples…
1. Unit 1: Basic Economic Concepts 2 “Econ, Econ” Econ.
Chapter 1 Basic Economic Concepts
1. Unit 1: Basic Economic Concepts “Econ, Econ” Econ 2.
3 FACTS! 1.Econ is a skills based course. Learning methodology resembles algebra more than history. 2.You MUST complete assignments BEFORE class Class.
Economics “Econ, Econ” Econ.
Services= actions or activities that one person performs for another (teaching, cleaning, cooking) Goods= physical objects that satisfy needs and wants.
Unit 1-1: Basic Economic Concepts ! I’ll give you anything you want other than money. What do you want? Would your list ever end? Why not? Scarcity!!!
American Economic Experience 8/18  EQ: What will I need to be successful in this class?  Bell Work: Sit at your desk from yesterday I ’ ll give you anything.
AP Economics “Econ, Econ” Econ 1. Review with your neighbor… 1.Define scarcity 2.Define Economics 3.Identify the relationship between scarcity and choices.
Basic Economic Concepts. What is Economics in General? Economics is the study of _________. Economics is the science of scarcity. Scarcity is the condition.
Basic Economic Concepts. What is Economics in General? Economics is the study of _________. Economics is the science of scarcity. Scarcity is the condition.
Economics “Econ, Econ” Econ. Introduction to Economics I WON THE LOTTERY! I’ll give you anything you want other than money. What do you want? Would your.
Factors (Means) of Production : Everything needed to produce goods or services goods = services =
Productive Resources and allocation of those resources.
1. Unit 1: Basic Economic Concepts “Econ, Econ” Econ 2.
Unit 1: Basic Economic Concepts “Econ, Econ” Econ 1.
1. Unit 1: Basic Economic Concepts “Econ, Econ” Econ 2.
The Four Factors of Production
Scarcity and the Science of Economics
Basic Econ Concepts. What is Economics? Most people aren’t satisfied Constant competition w/ others The problem is that resources are scarce.
Basic Economic Concepts. What is Economics in General? Economics is the study of _________. Economics is the science of scarcity. Scarcity is the condition.
1. Unit 1: Basic Economic Concepts “Econ, Econ” Econ 2.
“Econ, Econ” Econ. Economics is the study of CHOICES. Economics is the science of scarcity. Scarcity is the condition in which our wants are greater.
Economics “Econ, Econ” Econ. Introduction to Economics I WON THE LOTTERY! I’ll give you anything you want other than money. What do you want? Would your.
Unit 1: Basic Economic Concepts “Econ, Econ” Econ 1.
5 Key Economic Assumptions 1.Society’s wants are unlimited, but ALL resources are limited (scarcity). 2.Due to scarcity, choices must be made.
ELABORATE: The Four Factors of Production 1. Think About It: 1.Imagine you have a chocolate chip cookie 2.Consider all the different things needed to.
Activator During the holiday season of 1996, a children's toy appeared on Good Morning America. The toy, produced by Mattel, had sat on the shelves with.
Unit 1: Basic Economic Concepts
Monday, January 9th Please grab a green sheet from my “desk” – where my clipboard is. Get out something a piece of paper and something to write with.
AP® Economics Copyright ACDC Leadership 2015.
The Four Factors of Production
Unit 1: Basic Economic Concepts
AP® Economics Copyright ACDC Leadership 2015.
Unit 2: Basic Economic Concepts
Introduction to IB/AP Economics, Part 2
Basic Economic Concepts
Module 1 Is this all there is to economics?.
Unit 1: Basic Economic Concepts
Economics Copyright ACDC Leadership 2015.
Unit 1: Basic Economic Concepts
AP® Economics Copyright ACDC Leadership 2015.
Factors of Production.
Unit 1: Basic Economic Concepts
AP® Economics.
AP® Economics Copyright ACDC Leadership 2015.
Unit 1: Basic Economic Concepts
Review with your neighbor…
AP® Economics Copyright ACDC Leadership 2015.
Unit 1: Basic Economic Concepts
AP® Economics Copyright ACDC Leadership 2015.
AP® Economics Copyright ACDC Leadership 2015.
AP® Economics Copyright ACDC Leadership 2015.
Unit 1: Basic Economic Concepts
Unit 1: Basic Economic Concepts
Unit 1: Basic Economic Concepts
Module 1 Is this all there is to economics?.
The 4 Factors of Production
AP® Economics Copyright ACDC Leadership 2015.
Unit 1: Basic Economic Concepts
Factors of Production.
Economics “Econ, Econ” Econ.
Unit 1: Basic Economic Concepts
Unit 1: Basic Economic Concepts
Unit 1: Basic Economic Concepts
Presentation transcript:

Unit 1: Basic Economic Concepts “Econ, Econ” Econ

Economic Terminology Utility = Satisfaction! Marginal = Additional! Allocate = Distribute!

What’s the price? vs. How much does that cost? Scarcity vs. Shortages Scarcity occurs at all times for all goods. Shortages occur when producers will not or cannot offer goods or services at current prices. Shortages are temporary. Price vs. Cost What’s the price? vs. How much does that cost? Price= Amount buyer (or consumer) pays Cost= Amount seller pays to produce a good Investment Investment= the money spent by BUSINESSES to improve their production Ex: $1,000 new computer, $1 Million new factory

Goods vs. Services Give examples… Goods= physical objects that satisfy needs and wants Consumer Goods- created for direct consumption (example: pizza) Capital Goods- created for indirect consumption (oven, blenders, knives, etc.) Goods used to make consumer goods Services= actions or activities that one person performs for another (teaching, cleaning, cooking)

The 4 Factors of Production

The Four Factors of Production Producing goods and services requires the use of resources- DUH!. ALL resources can be classified as one of the following four factors of production: Land Labor Capital Entrepreneurship

The Four Factors of Production Land = All natural resources that are used to produce goods and services. Anything that comes from “mother nature.” (Water, Sun, Plants, Oil, Trees, Stone, Animals, etc.) Labor = Any effort a person devotes to a task for which that person is paid. (manual laborers, lawyers, doctors, teachers, waiters, etc.)

The Four Factors of Production Two Types of Capital: 1. Physical Capital- Any human-made resource that is used to create other goods and services (tools, tractors, machinery, buildings, factories, etc.) 2. Human Capital- Any skills or knowledge gained by a worker through education and experience (college degrees, vocational training, etc.)

The Four Factors of Production Entrepreneurship= ambitious leaders that combine the other factors of production to create goods and services. Examples-Henry Ford, Bill Gates, Inventors, Store Owners, etc. Entrepreneurs: Take The Initiative Innovate Act as the Risk Bearers So they can obtain _________. PROFIT Profit= Revenue - Costs

The Factors of Production

The Four Factors of Production Classify the Factors of Production in the following scenario: You decide to order a pizza to satisfy your wants. First, you picked up the telephone and gave your order to the owner that entered it into her computer. This information came up on the chief baker’s monitor in the kitchen and he assigned it to one of his cooks. The cook was busy mixing dough out of salt, flour, eggs, and milk. The cook finished mixing dough, washed his hands in the sink, and prepared your pizza using tomato sauce, cheese, and sausage. He then placed the pizza in the oven. Within 10 minutes the pizza was cooked and placed in a cardboard box. The delivery person then grabbed your pizza, jumped in the company car, and delivered it to your door.

The Four Factors of Production Classify the Factors of Production in the following scenario: You decide to order a pizza to satisfy your wants. First, you picked up the telephone and gave your order to the owner that entered it into her computer. This information came up on the chief baker’s monitor in the kitchen and he assigned it to one of his cooks. The cook was busy mixing dough out of salt, flour, eggs, and milk. The cook finished mixing dough, washed his hands in the sink, and prepared your pizza using tomato sauce, cheese, and sausage. He then placed the pizza in the oven. Within 10 minutes the pizza was cooked and placed in a cardboard box. The delivery person then grabbed your pizza, jumped in the company car, and delivered it to your door.

Accountants vs. Economists Accountants look at only EXPLICIT COSTS. Explicit costs are the traditional “out-of pocket costs” of decision making. Ex: Going to Disneyland Economists look at the EXPLICIT COSTS and the IMPLICIT COSTS. Implicit costs are the opportunity costs such as forgone time and forgone income. Ex: Payton Manning leaves the NFL to open a taco shop.