Introduction to Economics. Economics Warm-up. Make TWO charts: Listing three scarce resources in your life and in the world Listing three wants and three needs of you AND the federal government. Economics. Economics —the study of choices that people make to satisfy their wants and needs
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Introduction to Economics
Economics—the study of choices that people make to satisfy their wants and needs
Microeconomics—the study of choices made by economic actors such as households, companies, and individual markets
ex.—anytime you buy something or your grocer orders it
Macroeconomics—the behavior of entire economies
ex.—trade agreements and government regulations
--What goods are commonly used in your house?
--What resources were used to make those?
--What other goods could be made w/ those resources?
--Difference between consumer & capital good
-consumers good is meant for immediate consumption
Need to make choices
Unlimited Wants and Needs
The value of the next best alternative.
One of the favorite phrases of economists is, “there is no such thing as a free lunch.” What does this mean? What economic concept is it illustrating?
Production Possibilities Curve
A-B (on the curve)=most efficient use of resources…best choice
D (inside the curve)=inefficient use of resources. Possible but not ideal.
C (outside the curve)=impossible to produce with the resources available.