The Nature and Method of Economics

Slides:



Advertisements
Similar presentations
Economic Systems Chapter 5.
Advertisements

1 CHAPTER INTRODUCTION.
Chapter 1: The Nature and Method of Economics
The Nature and Method of Economics Economics is concerned with the efficient use of limited resources to achieve the maximum satisfaction of human material.
C h a p t e r o n e Economics: Foundations and Models.
Chapter 1: The Nature & Method of Economics
1 Ten Principles of Economics. TEN PRINCIPLES OF ECONOMICS Economics is the study of how society manages its scarce resources.
Unit 1—Introductory Materials Chapters weeks.
Chapter 1 Limits, Alternatives, and Choices McGraw-Hill/Irwin
Economics Chapters 1&2 What is Economics?.
The Nature and Method of Economics Ch. 1  A. Economics—deals with the efficient use of scarce resources to achieve the maximum satisfaction of economic.
Introduction to Economics
The Nature and Method of Economics 1 C H A P T E R.
Economics Today.
Economics “Econ, Econ” Econ. Unit 1: Basic Economic Concepts.
Roadmap for Economics. What is Economics? The Social Science concerned with the efficient use of limited or scarce resources to achieve maximum satisfaction.
1 - 1 The Economic Perspective Marginal Analysis Trade Offs & Opportunity Costs Types of Economics Economic Goals Introduction to Economics.
1 ECON203 Principles of Macroeconomics Week 2 Topic 1: Introduction Topic 2: Circular Flow Topic 3: Macroeconomic Goals Dr. Mazharul Islam.
1 NATURE OF ECONOMICS C H A P T E R Ch1: Nature of Economics
The Nature and Method of Economics 1 C H A P T E R.
An Economic Way of Thinking Unit One. What is Economics? …because the crucial and complex issues impacting your life today are largely economic in nature:
1 Limits, Alternatives, and Choices McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Unit 1—Introductory Materials Sections 1 and 2 2 weeks.
Basic Economic Concepts Economics: the discipline that deals with the allocation of scarce resources for the purpose of fulfilling society’s needs and.
Economics Ch. 1 Vocabulary By: Nathan Spell. economics  the social science concerned with the efficient use of scarce resources to achieve the maximum.
Economics: The World Around You
The Nature and Method of Economics Lecture 1 Dominika Milczarek-Andrzejewska.
1 Limits, Alternatives, and Choices McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
I. Economics Social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants Economic perspective.
ECON202, Maclachlan1 SEVEN PRINCIPLES OF ECONOMICS Chapter 1.
 Economics is defined as the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants.
Chapter 1: Limits, Alternatives, and Choices McGraw-Hill/IrwinCopyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
1 Limits, Alternatives, and Choices McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1 Limits, Alternatives, and Choices McGraw-Hill/Irwin
Chapter 1 Limits, Alternatives, & Choices
What is Economics? Chapter 18
Unit 1: Basic Economic Concepts
Introduction to Microeconomics
Economics Ms. Curran August 17.
College of Business – Rabigh
Chapter 1 Limits, Alternatives, & Choices
The Fundamental Economic Problem
LIMITS, ALTERNATIVES, AND CHOICES Pertemuan 1
Introduction to Economics
What is Economics About?
Economics: The World Around You
Basic Economic Concepts
The Fundamentals of Economics
Basic Economic Concepts
01 Limits, Alternatives, and Choices
Basic Economic Concepts
What is the difference between a good that is a need and a good that is a want? Give an example of each. A good that is a need is necessary for survival,
Economics Defined The social science concerned with the efficient use of limited or scarce resources to achieve maximum satisfaction of human wants.
The Scope and Method of Economics
Basic Economic Concepts
Unit 1 Chapter 1 “The Economic Way of Thinking”
1 Limits, Alternatives, and Choices
What is Economics? Chapter 1.
Unit 1: Basic Economic Concepts
The Study of Economics Guided Notes.
AP Economics “Econ, Econ” Econ.
Characteristics of the Ideal Classroom
Economics: Foundations and Models
Economic Systems and Decision Making
1 Limits, Alternatives, and Choices
The Scope and Method of Economics
Introduction to Economics
Please take notes on the following slides in your Business notebook
Ten Principles of Economics
01 Limits, Alternatives, and Choices
Presentation transcript:

The Nature and Method of Economics Chapter One People’s economic wants are numerous and varied. In our society, we purchase goods & services that are either a necessity or something that we simply want to have. Society has many productive resources (i.e. labor, tools, machinery, land, etc.) that are used to produce these goods & services. The problem is that our wants exceed the productive capacity of our limited resources. 11/18/2018

Economics Social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants. Numerous problems and issues are rooted in the challenge of using limited resources efficiently. Even though this is a social studies class, you will find that your background in math & English will come in handy as well! Bring a calculator with you to class each day. 11/18/2018

Economic Perspective Economists view things through a unique perspective: This way of thinking has several critical and closely interrelated features. Scarcity & choice Rational behavior Marginalism: benefits and costs 11/18/2018

Scarcity and Choice Since human and property resources are scarce (limited), the goods and services we produce must also be limited. Scarcity limits our options. As a result, we must make choices. First…From our definition of economics, it is easy to see why economists consider scarcity as an important concept. Because we can’t have it all, we must decide what we will have and what we must forgo. At the core of economics is the idea that “there is no free lunch.” You may get treated to lunch, making it “free” to you, but there is a cost to someone. I.E. The company has to purchase labor & other resources to serve you. 11/18/2018

Rational behavior Individuals will make different choices under different circumstances which will increase their utility (satisfaction). Rational decisions may change as costs and benefits change. 2) You may switch to Pepsi when it is on sale. 11/18/2018

Marginal Analysis: Benefits & Costs “marginal” – means extra, additional, or a change in. Each decision made involves marginal benefits and costs. As long as the marginal (additional) benefits exceeds the cost, you should pursue that choice. 11/18/2018

Why Study Economics? Economics for Citizenship A basic understanding of economics is essential if you are to be a well-informed citizen. Professional and Personal Applications The study of economics helps you make sense of the everyday activity you observe. 2) Economics helps consumers and workers make better buying and employment decisions. 11/18/2018

Economic Goals Economic growth Full employment Economic efficiency Price-level stability Economic freedom Equitable distribution of income Economic security Balance of trade Produce more and better goods & services Provide suitable jobs for all citizens who are willing and able to work Achieve maximum fulfillment of wants using the available productive resources Avoid large swings in the price level (avoid inflation or deflation) Guarantee that businesses, workers, & consumers have a high degree of freedom in their economic activities. Ensure that no group of citizens faces poverty while most others enjoy abundance. Provide for those who are ill, disabled, laid off, aged, or otherwise unable to earn minimal levels of income Seek a reasonable overall balance with the rest of the world in international trade and financial transactions 11/18/2018

Macroeconomics and Microeconomics Study of the economy as a whole. Microeconomics Study of specific economic units. I.E. small segments of the economy (businesses, households, government) 11/18/2018

Graphs and Their Meaning Graph- visual representation of the relationship between two variables (I.e. price and quantity sold). Direct (positive) Relationship- Two variables change in the same directions. Inverse (negative) Relationship- Two variables change in opposite directions. 11/18/2018