1. DO Now: Make a list of your wants and needs.
AIM: What is economics?
DO Now: Make a list of your wants and needs.

2. Economics
Basic elements of thinking like an economist: the process of deciding what to buy and how much to pay for it. Scarcity – The Basic Economic Problem fundamental economic problem facing all societies, resulting from a combination of scarce resources and people’s virtually unlimited needs and wants Economics = social science dealing with how people satisfy seemingly unlimited and competing wants and needs through the careful use of scarce resources

3. ECONOMICS NEED = a basic requirement for survival
WANT = simply something we would like to have but is not necessary for survival
*needs & wants  expressed in terms of economic products

4. Goods =
-tangible economic product that is useful, transferable to others, and used to satisfy wants and needs 1. durable good (3 years) 2. nondurable good (wears out) 3. consumer good (intended for consumer) 4. capital good (a factor of production)

5. Services =
-work or labor performed for someone (intangible)

6. Paradox of value
Some necessities had a very low monetary value while some non- necessities had a very high value Adam Smith – Utility = the capacity to be useful and provide satisfaction

7. Wealth
The accumulation of products that are tangible, are scarce, have utility and are transferable from one person to another
Questions all societies face: -What to produce? -How to produce? -For whom to produce?

8. Gross Domestic Product
GDP = the monetary value of ALL final goods, services, and structures produced during a one-year period

9. Economy
Producers
-include all kinds of businesses, individual sellers  corporations
*Factors of production
Land
Capital
Labor
entrepreneurs
Consumers “There is no such thing as free lunch.” consumerism: a social movement that was aimed at promoting the interests of consumers

10. Economic interdependence
-Opportunity Cost = cost of the next best alternative (not always measured in terms of dollars/cents
-Economic Growth = occurs when a nation’s total output of goods and services increase over time (requires risks and sacrifices)
-Productivity = measure of the amount of output produced in a specific time period with a given amount of resources
Human capital
Division of labor
Specialization
Economic interdependence
IMPROVE

11. market
Meeting place or mechanism through which buyers and sellers of an economic product come together. May be local, regional, national, or global.

12. Thinking like an economist
Economic Model = simplified version of a complex concept or behavior expressed in the form of a graph, figure, equation or diagram COST-BENEFIT ANALYSIS = comparison of the cost of an action to its benefits