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Intro to Economics

Intro to Economics. The greatest powerpoint about economic principles of all time!. Concepts Covered. What is economics? What is scarcity? What are the three questions we answer as economists? What are the four factors of production? What is GDP?. What is Economics ? – Google Images.

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Intro to Economics

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  1. Intro to Economics The greatest powerpoint about economic principles of all time!

  2. Concepts Covered • What is economics? • What is scarcity? • What are the three questions we answer as economists? • What are the four factors of production? • What is GDP?

  3. What is Economics? – Google Images

  4. So what should economics class be like?

  5. Economics • The study of how people try to satisfy their unlimited wants using limited resources

  6. What would you have if you could?

  7. Scarcity • This is the fundamental problem in economics • Scarcity is the difference between our unlimited wants and our limited resources. • This is not the same as a shortage

  8. This is what it’s like trying to solve the world’s problems as an economist

  9. What would the opposite of scarcity look like?

  10. Because of limited resources • “Nothing in this world is free.” • “Money doesn’t grow on tree’s” • “It’s too good to be true.” • “There is no such thing as a free lunch.” • There is no such thing as a free iPod touch

  11. Now that we’ve agreed there’s a problem • Congratulations, you’re an economist now.

  12. Our three main questions: • WHAT to produce? • HOW to produce it? • WHO to make it for?

  13. Let’s say we have a class tree: • WHAT? • HOW? • WHO?

  14. Factors of Production • Land (stuff from nature) • Capital goods (goods that make other goods, and money [capital]) • Labor (humans working) • Entrepreneurial ability (humans starting businesses)

  15. Entreprenuership • Read pg. 11 – Under Armour • Let’s answer question #2 together today

  16. All of this adds up to • GDP • GDP stand for Gross domestic product • The dollar value of all final goods and services produced within a country’s borders in one year • Gross – • “How much money did your lemonade stand make?” • Gross vs. Net • Domestic – • Whatever is produced within our borders • Product – • Final products are counted, not products used to make other products

  17. What is a final good? • A good which is consumed immediately • Is the Jimmy John’s knife a final good?

  18. What does GDP look like?

  19. This is real GDP, adjusted for inflation

  20. Real vs. NOMINAL Real GDP - adjusted Nominal – not adjusted

  21. Comparing GDPs

  22. What does this map portray?

  23. What is GDP per capita?

  24. Is GDP a good measure of a country’s success? • We will cover this tomorrow

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