1. Economics 101: Making Choices
What are the basic ideas of Microeconomics? What influences the decisions we make as consumers?
C&E

2. What is Economics?
Economics: decisions concerning production, distribution and consumption of goods and services
2 major fields:
Microeconomics: small picture (individuals and businesses)
Macroeconomics: big picture (Society, Gov’t, Industries, etc…)

5. I’ll take “Things We Buy” for 200
Goods: Tangible
Services: Intangible
Needs: Requirements
Wants: Desire
How do you decide what to buy?

6. It’s a “Scarcity” World
Scarcity: not having enough
Effects all parts of society
Drives most economic decisions
Causes:
Lack of resources
Shortage of labor
High demand
Effects:
Competition
Alternatives
Making choices

8. Making Choices All consumers make trade-offs
Choices are based on resources
Something has to be given up
Cost v. Benefit:
Opportunity Cost: what you could have had (Gave up)
Opportunity Benefit: what is gained
Benefit should outweigh cost!