Welcome Again!!!

First……

Key Terms Economics: The study of how individuals and societies seek to satisfy their needs and wants. Needs: Products (goods and services) that are essential for survival. Wants: The desires of individuals and societies. Universal needs: Goods and services essential to all. Non-Universal: Goods and/or services essential to specific individuals or groups. Basic Economic Truth: There are not enough resources to satisfy everyone’s wants and some do not even get their needs. Rational Self interest: In making choices, people will choose the alternative that has the greatest net benefits.

Your responses… We will now watch a short video clip. Please write down what you think this clip has to do with Economics?

If we have time, we will come back to this clip in December..

What is Economics? A study of how individuals and societies seek to satisfy their needs and wants.

What are needs? Needs are products that are essential. Some needs are universal in that they are essential to everyone. Some needs are non- universal. They are not essential to everyone but some people cannot survive without them.

Universal needs Food Air Water

Non-universal needs Clothing Shelter Surgery and /or medicine that you would die without

Be careful on tests… Do not say “medicine” on a test. You must say medicine that someone would die without.

and wants… Are products that we desire. New cell phone… New sports car… Lots of money…

A new boyfriend?

A new girlfriend

One of each…

Whatever…its 2011

Wants however are more personal They reflect individual tastes Cultures Religions Sexualities Climates Geography Politics Etc.

Products Many of our needs and wants are “involve” products Products can be either goods or services.

Goods Goods are physical items.

Fruit

New Board shorts

Baseball equipment

Services Are actions that one person does for another.

Your dentist treating filling a cavity

Your accountant doing your taxes

Your teacher trying to teach you something.

Your massage….

Basic Economic Truth Economics is important because there is a basic economic truth that we must all understand There are not enough resources to satisfy everyone’s wants and some people do not even get what they need.

Why is this important Since there are insufficient resources to satisfy each society’s and every individuals needs and wants, we must make choices? The nature of these choices and how they are made will be topics of future lessons.

Lets review today’s key terms Economics: The study of how individuals and/or societies seek to satisfy their needs and wants. Needs: Products that are ESSENTIAL. Wants: Products that Individuals and/or societies DESIRE that are not essential.

Additional key terms Universal needs: Products that are ESSENTIAL for everyone. Non Universal needs: They are ESSENTIAL for some. Basic economic truth: There are not enough resources to satisfy everyone’s wants and some people do not even get what they need. Rational Self-Interest: : In making choices, people will choose the alternative that has the greatest net benefits

Last item… What does a snicker’s bar have to do with econ? They are both about “satisfaction” Snickers is the official candy of our class.

Happiness, “Satisfaction”, and Money Does capitalism create happiness and satisfaction? Tonight’s homework explains how capitalism is constantly challenging our happiness Our 2 nd homework assignment explains how recent studies show that people living in wealthier nations, (capitalist) have a higher level of satisfaction Could it be that capitalism creates a competition between people all seeking to be the happiest (wealthiest) that raises most peoples’ level of satisfaction.

Happiness varies from country to country and is typically related to “Income”