WHAT IS ECONOMICS What is Economics Goods and
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WHAT IS ECONOMICS?
What is Economics? Goods and Services are tangible and intangible things that satisfy people’s wants and desires. Goods: Cars, Computers, Ipods, Fruit, Cell phones Services: Doctor, Teacher, Accountant, Librarian SO… What are the wants and desires of all individuals?
What is Economics? WE WANT EVERYTHING!
What is Economics? OUR WANTS ARE UNLIMITED!!
What is Economics? We want; food, water, good grades, a haircut, money, a car, a home, pictures, furniture, groceries, relationships, happiness, we want, we want… the list is endless What is the definition of Economics? “Economics is the study o f how individuals and society, experiencing virtually limitless wants, chooses to allocate its scarce resources to satisfy those wants. ”
What is Economics? So what dilemma does this create? We have unlimited wants, and scarce resources. What causes this dilemma? Scarcity- the idea that our unlimited wants out weigh the resources available which makes all levels of society make decisions.
What is Economics? What is scarce? Everything is scarce because our wants ALWAYS exceed the limited resources available. Simply put… Economics is: Economics=Scarcity And the definition of Scarcity is Scarcity = wants > availability of resources
What is Economics? When decisions are made there is always a cost involved. Opportunity Cost= the value of what you must give up when you make a particular choice. Example: up? Going to college, what are you giving
What is Economics? Four Categories of Scarce resources: 1. Land 2. Labor (Human Capital) 3. Human knowledge, Skills, Workers willing and able to perform a job Physical Capital 4. Raw Materials, Natural Resources, Air, Water Machines, Factories, Equipment Entrepreneurship Someone willing to take a risk and start a business
What is Economics? What are we studying specifically in Macroeconomics? How societies make decisions from limited resources to meet their societal goals and answer the 3 key economic questions: What to produce? 2. How to produce it? 3. Who is going to consume the good/How is it allocated? Societal Goals- Efficiency, Growth, Security, Equality, Freedom 1.
What is Economics? 4 Economic Systems: 1. 2. 3. 4. Traditional Centrally Planned Free Market Mixed/Modern
Staple convenience goods examples
Example of public good
Merit goods vs public goods
Publik goods
Maastricht university economics and business economics
Econ213
Total product offer
Madrid goods and services manager
Sale of goods and supply of services act 2007
Production is the creation of
Marketing goods and services
Private goods
