1. THE BASICS OF ECONOMICS
THE BASCIS OF ECONOMICS
THE BASICS OF ECONOMICS
The factors of production
A further understanding of the three basic economies
What is the public good and what is the best way to achieve it
Four key concepts of economics
ECONOMIC SYSTEMS PRESENTATION 2

2. WHAT ARE THE BASIC FACTORS OF PRODUCTION
There are three components to production
Land
Consists of all the materials found in the natural environment needed to produce goods including both renewable and nonrenewable resources

3. WHAT ARE THE BASIC FACTORS OF PRODUCTION
There are three components to production
Labour
Consists of all the physical and mental effort needed to produce goods and services

4. WHAT ARE THE BASIC FACTORS OF PRODUCTION
There are three components to production
Capital
Consists of money that people own or borrow, used to purchase equipment, tools and other resources to produce goods and services

5. THE ECONOMIC CONTIUNUM
more government involvement less government involvement
Planned Economy
Mixed Economy
Market Economy
These are the three base economies, and one thing to understand is that all economies are to some extent mixed

6. THE PLANNED ECONOMY
At the far left of the spectrum the government makes all decisions about how to solve scarcity
Some characteristics
Resources are publicly owned
Government makes decisions on how to use resources
Individual consumers have little influence on economic decision making

7. THE MIXED ECONOMY
Combines private ownership and government control, in these economies, the level of government involvement fluctuates depending on who is in power
Some characteristics
Some resources are publicly owned and some are privately owned
Individuals and Government both make decisions about what to produce
Individual consumers and government influence economic decision making

8. THE MARKET ECONOMY
At the right end of the spectrum the choices of individuals business owners and consumers solve scarcity
Some characteristics
Resources are privately
Individual consumers make decision on how to use resources
Indivdual consumers drive economic decision m aking by choosing what to buy

9. WHAT IS THE PUBLIC GOOD
In theory, what is in the best interests for society as a whole
Difficulty lies in the fact that intelligent and reasonable people can disagree about what that is in the best interests of the entire society

10. ONE OUTLOOK ON THE PUBLIC GOOD
The perspective on the left believes that the public good is best served when the needs of the group and cooperation are emphasized in society

11. A DIFFERENT OUTLOOK ON THE PUBLIC GOOD
The perspective on the right believes that the public good is best served when the needs of the individual and competition are emphasized in society

12. FOUR KEY CONCEPTS Consumers Producers
Those who use and purchase products and services
Producers
Those who create products and services

13. FOUR KEY CONCEPTS Supply Demand
The products and services created by producers
Demand
the wants and needs of consumers for products and services

14. WHAT ABOUT COMPETITION
this is the rivalry among producers to sell products to consumers
there are various types of competition
Monopoly
Happens when one producer controls all the supplies of a product or service