Chapter 1 What is Economics?

Glossary P.1 Vocabulary / phrase Meaning 1 wants 2 resources 3   2 resources 3 scarcity 4 limited/ unlimited 5 choice

Vocabulary / phrase Meaning 6 opportunity Cost   7 highest valued option forgone 8 value 9 change 10 increase 11 decrease 12 satisfy

1.1 Wants (P.2) Wants refer to people’s desire for goods and services.

1.1 Wants (P.2) tangible / intangible unlimited

1.1 The feature of wants: tangible / intangible

1.1 The feature of wants: unlimited When one want is satisfied, another want emerges (出現)

I am a monopoly, I already have everything. But still, I want…Guns…. Power…iphone…

1.2 Resources(p.2) limited natural, human and man-made Resources are used to produce goods and services which satisfy people’s wants limited natural, human and man-made

1.3 Scarcity (P.2) Scarcity is a relative concept Scarcity refers to the situation that resources available are insufficient to satisfy all human wants, i.e. we want more than we have. Scarcity is a relative concept

1.3 Scarcity (P.2) Scarcity is a relative concept?! What is relative?

Scarcity is a relative concept V.S. Wants Resources

Do you want to have this mobile phone?

Ascent 系列的靈感是來自於超級跑車的設計理念。

What is Vertu? 最便宜的也是10萬港元，最貴的身價超過100 萬 Vertu私人助理服務是許多高端會所的通行證 。只需持有Vertu手機，即可出入紐約、倫敦 、北京、香港等全球各大城市的私人會所。大 多數富豪希望被納入同階層人士組成的“圈子 ”，而Vertu恰好滿足了這種社交需求。

Do you want to have this mobile phone?

Scarcity is a relative concept Do air has the problem of scarcity? Do the air in space has the problem of scarcity?

Scarcity is a relative concept This old man only has 3 hair, people laugh at him. Does his hair has the problem of scarcity?

Quiz (p.2) Can resources satisfy all people’s wants? Why? Yes / No. Because the _____________ available are ____________ to satisfy all human ___________. There is the problem of _______________.

1.4 Choice (P.2) Because of problem of scarcity (i.e._________________________________), every person need to make choice to satisfy our wants with limited resources.

Summary (P.3) Economics is a study of: Using limited resources to satisfy unlimited wants Explain and predict human’s behaviors

Revision: (p.3) Unlimited wants Scarcity Choice Limited resources

Global Rich 2010 and 2014 http://www.forbes.com/billionaires/list/#tab:over all

Do billionaires need to face the problem of scarcity? Yes, though they are rich to buy all the things the want, they still have intangible wants, e.g. health and friendship. Thus they still have to face the problem of scarcity.