1. The Meaning of Economics1
C H A P T E R
The Meaning of Economics

2. II. What are the stages of Economic Activity? Economic Resources
I. What is Economics?
“Open Question…..think of any meaning of Economics”
II. What are the stages of Economic Activity?
Economic Resources
Production Processing
Goods & Services

3. What are the Economic Resources?
Natural Resources
Human Resources
Capital
Entrepreneur
Note: Economic resources are sometimes called factors of production (inputs)

4. What are the goods & services? Services
Consumption Goods: (goods bought by individuals to provide personal enjoyment)
Capital Goods: (goods bought by businesses to increase their production resources)
Consumption goods
A. Durable Goods
B. Non-durable

5. RENTAL INCOME INTEREST INCOME WAGES PROFIT & LOSS
- Economic resources earn RESOURCE PAYMENTS as a result of using them in the production processing
LAND
CAPITAL
LABOR
ENTREPRENEUR
RENTAL
INCOME
INTEREST
INCOME
WAGES
PROFIT &
LOSS

6. III. Society’s economizing Problem
There are limited economic resources compared to unlimited needs of individuals
What are the consequences of scarce economic resources?
1- Societies must make choices under conditions of scarcity
2- Sacrifice !!
3- Opportunity Cost

7. IV. Now !! What is ECONOMICS?
Social Science…. Limited (scarce) economic resources….Efficiently use…. Maximum satisfaction of human materials wants

8. V. The difference between Microeconomics and Macroeconomics?
Microeconomics …….Think of Your Self !!!
Macroeconomics…….. Think of the economy overall !!!