Basic Economic Concepts The Study of Economics Purpose: To identify the underlying reason for studying economics.

I. Goals Identify the difference between macro and microeconomic studies and examples of each. Define scarcity and shortages and provide examples.

I. What is Economics? Economics: Macroeconomics Microeconomics The study of how people and society pursue satisfying their needs and wants. Macroeconomics Economics on a larger scale. Ex. Trade, Government policy, and economic systems Microeconomics Economics on a smaller scale. Ex. Businesses, specific markets, competition

II. Scarcity Scarcity: Shortage: Means “of limited amount.” Everything is scarce. No resource is limitless. Shortage: Anytime the amount demanded exceeds the amount supplied. Shortages are temporary, scarcity is always there. Scarcity Seinfeld: http://yadayadayadaecon.com/clip/47/

II. Scarcity High Level of Scarcity Gold Oil Platinum Low Level of Scarcity Water Rocks Dirt

III. Scarcity Parking at the mall on Black Friday Gas at gas stations after a hurricane

IV. Scarcity Reading Find and underline the title and subtitle. What do you think the passage will be about? Read the introductory section and indicate who, what, when, and where this article is written about. What is the main idea of the passage?

IV. Scarcity Reading Underline and restate portions of the article that further the argument the author is trying to make. Underline and indicate the “so what?” portion of the reading. In other words why does the author believe this information is important?