1. Basic Economic Concepts

2. Economics……  Is the study of the choices one makes to satisfy their insatiable wants  Every Choice is based on an incentive…the motivating factor behind every choice you make (your choices are constant).  Utility - The personal gratification gained from a choice. (Watching TV, Hangin’ with Little Penguin)  Is the study of the choices one makes to satisfy their insatiable wants  Every Choice is based on an incentive…the motivating factor behind every choice you make (your choices are constant).  Utility - The personal gratification gained from a choice. (Watching TV, Hangin’ with Little Penguin)

3. Economics is Assumption Based…”Assuming all things are equal”  Each Choice that you make results in a trade-off and Opportunity Cost.  Trade-Off - The decision made between 2 and only 2 items/acts.  Opportunity Cost - What you give up in your choice…..the next best thing that is missed out on.  WHAT IS A TRADE-OFF AND OPPORTUNITY COST THAT YOU HAVE MADE TODAY?  Each Choice that you make results in a trade-off and Opportunity Cost.  Trade-Off - The decision made between 2 and only 2 items/acts.  Opportunity Cost - What you give up in your choice…..the next best thing that is missed out on.  WHAT IS A TRADE-OFF AND OPPORTUNITY COST THAT YOU HAVE MADE TODAY?

4. Why Econ Exists  Economics exists due to Scarcity  Scarcity is the fact that you all have unlimited wants/desires and limited resources to satisfy them.  ALL RESOURCES ARE SCARCE!!!  Economics exists due to Scarcity  Scarcity is the fact that you all have unlimited wants/desires and limited resources to satisfy them.  ALL RESOURCES ARE SCARCE!!!

5. Factors of Production (Resources)  Land - Anything given to us by mom nature that is used to create a good/service (natural resource)  Labor - Effort put into a good/service (human resource)  Entrepreneurship - The risk of failure  Capital - Anything man-made that is used to produce a good/service (capital resource)  Financial Capital - $$$$$$$ (capital resource)  Land - Anything given to us by mom nature that is used to create a good/service (natural resource)  Labor - Effort put into a good/service (human resource)  Entrepreneurship - The risk of failure  Capital - Anything man-made that is used to produce a good/service (capital resource)  Financial Capital - $$$$$$$ (capital resource)