Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and...
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Transcript of Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and...
![Page 1: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/1.jpg)
Intro to Economics
Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off.
Unlimited Wants and Limited Resources
![Page 2: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/2.jpg)
I) Intro the Econ
A) economics – the study of the decisions involved in producing, distributing, and consuming goods and services
![Page 3: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/3.jpg)
I) Intro the Econ
A) economics – the study of the decisions involved in producing, distributing, and consuming goods and services 1) goods are tangible, they are
physical
![Page 4: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/4.jpg)
I) Intro the Econ
A) economics – the study of the decisions involved in producing, distributing, and consuming goods and services 1) goods are tangible, they are
physical Services are intangible, things people
do, not objects
![Page 5: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/5.jpg)
II) Unlimited Wants and Limited Resources
A) scarcity – situation where there are not enough products to satisfy people’s needs or wants
![Page 6: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/6.jpg)
II) Unlimited Wants and Limited Resources
A) scarcity – situation where there are not enough products to satisfy people’s needs or wantsB) Scarcity is based on two ideas:
![Page 7: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/7.jpg)
II) Unlimited Wants and Limited Resources
A) scarcity – situation where there are not enough products to satisfy people’s needs or wantsB) Scarcity is based on two ideas: 1) there is no limit to what we want
![Page 8: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/8.jpg)
II) Unlimited Wants and Limited Resources
A) scarcity – situation where there are not enough products to satisfy people’s needs or wantsB) Scarcity is based on two ideas: 1) there is no limit to what we want 2) however, there is a limit to our
ability to produce those goods and services
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II) Unlimited Wants and Limited Resources
A) scarcity – situation where there are not enough products to satisfy people’s needs or wantsB) Scarcity is based on two ideas: 1) there is no limit to what we want 2) however, there is a limit to our
ability to produce those goods and services a) ex. Xbox one and PS4
![Page 10: Intro to Economics Target: I can explain the economic decisions that consumers, businesses, and government make in a trade-off. Unlimited Wants and Limited.](https://reader035.fdocuments.us/reader035/viewer/2022062500/5697bfa41a28abf838c96e2c/html5/thumbnails/10.jpg)
II) Unlimited Wants and Limited Resources
A) scarcity – situation where there are not enough products to satisfy people’s needs or wantsB) Scarcity is based on two ideas: 1) there is no limit to what we want 2) however, there is a limit to our ability
to produce those goods and services a) ex. Xbox One PS4 b) in a state of scarcity, no matter how
much we make, someone will always want more
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C) This means that the consumer must choose
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C) This means that the consumer must choose
1) therefore, what ever you spend your money on is the item you want most, b/c you gave up something valuable to receive it
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C) This means that the consumer must choose
1) therefore, what ever you spend your money on is the item you want most, b/c you gave up something valuable to receive it a) ex. You have $100, do you by a t-
shirt from Abercrombie, or 5 Blurays
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C) This means that the consumer must choose
1) therefore, what ever you spend your money on is the item you want most, b/c you gave up something valuable to receive it a) ex. You have $100, do you by a t-shirt
from Abercrombie, or 5 Blurays b) this does not mean money is scarce,
rather that these items are so valuable to us, that we are willing to give up something of value (money) to get them
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C) This means that the consumer must choose
c) if I could produce the Blurays, I would not need to give up the valuable $ for them
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D) Businesses must choose as well
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D) Businesses must choose as well
1) their choices are based upon making a profit
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D) Businesses must choose as well
1) their choices are based upon making a profit a) ex. What will make more money,
PS3 or Atari system
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E) Governmental Choices
1) only have so much money and services to spend
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E) Governmental Choices
1) only have so much money and services to spend2) if they dedicate all resources to one source, others will suffer
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E) Governmental Choices
1) only have so much money and services to spend2) if they dedicate all resources to one source, others will suffer a) ex. “star wars” defense program,
spent a lot of $ on it, while ignoring other needs like education
b) what basis does the gov’t make their decisions?
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III) Opportunity Costs
A) trade-offs – decisions that must be made between two choices
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III) Opportunity Costs
A) trade-offs – decisions that must be made between two choicesB) When this decision is made, the alternative, the item you don’t choose is known as the opportunity cost
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III) Opportunity Costs
A) trade-offs – decisions that must be made between two choicesB) When this decision is made, the alternative, the item you don’t choose is known as the opportunity cost 1) opportunity cost – value of the not
taken choice in a trade-off
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III) Opportunity Costs
A) trade-offs – decisions that must be made between two choicesB) When this decision is made, the alternative, the item you don’t choose is known as the opportunity cost 1) opportunity cost – value of the not
taken choice in a trade-off a) this can be $ or time
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III) Opportunity Costs
A) trade-offs – decisions that must be made between two choicesB) When this decision is made, the alternative, the item you don’t choose is known as the opportunity cost 1) opportunity cost – value of the not
taken choice in a trade-off a) this can be $ or time b) ex. After school job vs. sport
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C) Life is a series of trade-offs
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C) Life is a series of trade-offs
1) they can be positive or negative
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C) Life is a series of trade-offs
1) they can be positive or negative a) ex. Take a job and earn money,
plus you don’t get inured playing a sport
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C) Life is a series of trade-offs
1) they can be positive or negative a) ex. Take a job and earn money,
plus you don’t get inured playing a sport
b) ex. Take a job, don’t earn an athletic scholarship