What is Economics?. What is Economics?. Textbook defines it as “ the study of how we make decisions in a world where resources are limited.” *the production, distribution, and consumption of goods and services. What is Economics?. There will always be a demand for needs and wants .
How did the scarcity of resources affect your decision making?
What other examples can you think of where scarce resources are divided up?
How did it make you feel if your group decided to give you less “food?”
An economic system in which private citizens own and use the factors of production in order to seek profit.
Divide into groups of 4 or 5
Personal Consumption Expenditures
GDP =C+ I +G+NX
Component % of GDP
Average Percent of GDP since 2003
Consumption (PCE) 70 %
Net Exports -5%
Source: Bureau of Economic Analysis
Because trade creates VALUE!
The book says market, but there are some elements of command economies.