WHAT IS ECONOMICS?
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WHAT IS ECONOMICS??
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BRIEF DESCRIPTION ABOUT SOME BASIC CONCEPTS FOR ECONOMICS
Transcript of WHAT IS ECONOMICS?
WHAT IS ECONOMICS??
WHAT IS ECONOMICS??
● ECONOMICS IS THE STUDY OF HOW PEOPLE USE RESOURCES TO SURVIVE AND TO SATISFY THEIR NEEDS AND WANTS
3 BASIC ECONOMIC QUESTIONS
● A SOCIETY MUST ANSWER THREE BASIC ECONOMIC QUESTIONS.
1ST ECONOMIC QUESTION
● WHAT GOODS AND SERVICES SHOULD BE PRODUCE? (RESOURCES)
2ND ECONOMIC QUESTION
● HOW TO PRODUCE THE GOODS AND SERVICES? (PRODUCERS)
3RD ECONOMIC QUESTION
● WHO GETS THE GOODS AND SERVICES PRODUCED? (HOUSEHOLDS)
CASH ECONOMY
● IN A CASH ECONOMY INCOME DETERMINES THE GOODS AND SERVICES A CONSUMER CAN BUY
FREE ENTERPRISE
● THE U.S. HAS A FREE ENTERPRISE SYSTEM
● A FREE ENTERPRISE SYSTEM OFFERS SEVERAL BENEFITS,
● ALSO THE GOVERNMENT PLAYS A LIMITED ROLE IN FREE ENTERPRISE
BENEFITS OF FREE ENTERPRISE
● GIVES CONSUMERS FREE CHOICE
● ENCOURAGES COMPETITION OR BEST PRODUCT AT LOWEST PRICE
● SUPPORTS PRIVATE OWNERSHIP
● ENCOURAGES INVENTION AND INVESTMENT
Values strongly influence our spending habits. We don’t usually spend our money on things we do not feel are important. Typically, the more important something is, the more we are willing to spend on it.
WHAT ARE VALUES???
Values▪ Family▪ Friends▪ Work▪ Honesty▪ Self Reliance▪ Independence▪ Religion
▪ The beliefs and practices in your life that are very important to you.
WHAT IS SCARCITY???
“Scarcity is an economic principle stating that because of limited resources, an economic system cannot possibly produce all the goods and services that people want; therefore, choices must be made about how the limited resources will be used.”
NEEDS vs WANTS
▪NEEDS▪Essentials…the
basics of life▪Food▪Clothing▪Shelter
NEEDS vs WANTS▪WANTS
▪Simply increase the quality of living
ALMOST FINISHED
● WHAT IS SCARCITY?
● WHAT ARE NEEDS?
● WHAT ARE WANTS?
● WHAT ARE VALUES?
● NAME TWO THINGS THAT INFLUENCE YOUR VALUES
CAN YOU ANSWER THESE QUESTIONS???
● WHAT ARE THE THREE BASIC ECONOMIC QUESTIONS EVERY SOCIETY MUST ANSWER?
● WHAT ARE TWO BENEFITS THAT A FREE ENTERPRISE SYSTEM OFFERS TO CONSUMERS?
● WHAT ARE THE BASIC NEEDS?
