1 / 6

Why We Learn about Economics

Why We Learn about Economics. The story of Robinson Crusoe and Wilson, the native. Robinson Crusoe. Stranded on a deserted island Has very limited resources Needs to survive Learns how to build shelter using palms from palm trees Learns how to fish In one hour, Robinson can

alyn
Download Presentation

Why We Learn about Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Why We Learn about Economics The story of Robinson Crusoe and Wilson, the native

  2. Robinson Crusoe • Stranded on a deserted island • Has very limited resources • Needs to survive • Learns how to build shelter using palms from palm trees • Learns how to fish • In one hour, Robinson can • Catch 2 fish, or • Get 4 palms

  3. Robinson Crusoe • Robinson can only work for 8 hours a day or else the sun will be too much and he will get dehydrated • In one day, Robinson can • Catch 16 fish, or • Get 32 palms • Robinson decides to split his time and spend 4 hours fishing and 4 hours palming • 8 fish • 16 palms • Robinson is very happy

  4. Robinson Crusoe • Little did Robinson know, but there was another person on the island who had been there for a very long time named Wilson • Wilson can also fish, but is real good at palming • In one hour, Wilson can • Catch 2 fish • Get 8 palms • One day • 16 fish • 64 palms • Splitting his time • 8 fish • 32 palms

  5. Robinson and Wilson Robinson and Wilson meet and start talking about their skills The two decide that they should help each other out Robinson offer Wilson 1 fish for 3 palms Should they trade?????

  6. Trade What do they gain?

More Related