Economics Nicolas Sharman 04052020 What is Economics Economics

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Economics Nicolas Sharman 04/05/2020

Economics Nicolas Sharman 04/05/2020

What is Economics? • Economics is the branch of knowledge concerned with the production,

What is Economics? • Economics is the branch of knowledge concerned with the production, consumption and transfer of wealth.

The Budget! • The budget looks at government spending and taxation (G&T). • Today

The Budget! • The budget looks at government spending and taxation (G&T). • Today we’re going to have a quick look at the budget and how we might allocate resources differently to the government.

£ 850 B • This year the government will spend nearly £ 850 billion

£ 850 B • This year the government will spend nearly £ 850 billion keeping the country working. We’re going to simplify the budget and assume taxation stays the same and solely look at government spending.

What does the government spend it’s money on? • • • Social Protection Social

What does the government spend it’s money on? • • • Social Protection Social Services Health Agriculture Education Defence Transport Housing/Environment Public order and safety Other (including EU contributions) Interest on national debt.

You need to decide how to spend the £ 850 bn between these areas?

You need to decide how to spend the £ 850 bn between these areas? • • • Social Protection (benefits etc. ) Social Services Health Agriculture Education Defence Transport Housing/Environment Public order and safety (police, fire service etc. ) Other (including EU contributions) Interest on national debt.

Where does the government get this £ 850 b from? • Taxes • Borrowing

Where does the government get this £ 850 b from? • Taxes • Borrowing

What taxes do we pay in the UK?

What taxes do we pay in the UK?

Are these taxes fair?

Are these taxes fair?

Scarcity, choice and opportunity cost. • The first lesson we do in economics looks

Scarcity, choice and opportunity cost. • The first lesson we do in economics looks at the fact that resources are scarce but wants are unlimited. Today’s lesson is just one example of how this is true. • The bridging unit you have to complete gives another example of allocating scarce resources and how these difficult decisions have to be made in real life.