What is ECONOMICS?

ECONOMICS The study of how to meet unlimited wants and needs with limited resources.

I want a lot of stuff but I can’t afford it all? What do I do if . . . I want a lot of stuff but I can’t afford it all?

You have to deal with scarcity! Well, then You have to deal with scarcity!

SCARCITY NOT ENOUGH RESOURCES TO COVER ALL YOUR WANTS AND NEEDS

By the way . . . Everyone has to deal with scarcity, including Individuals Families Schools Communities Businesses Nations

BASIC ELEMENTS USED TO CREATE GOODS AND SERVICES And RESOURCES are BASIC ELEMENTS USED TO CREATE GOODS AND SERVICES

There are different types of ECONOMIC RESOURCES Natural Gifts of nature – sunlight, water, land, trees, etc. used to produce goods and services Human Physical and mental labor people use to produce goods and services Capital Buildings, machines, technology and tools used to produce goods and services

financial capital Is money a resource? Money is a resource called which allows you to purchase other resources

Because you have to deal with scarcity, you have to make Ok, now back to scarcity . . . Because you have to deal with scarcity, you have to make CHOICES!

Every choice you make has a And remember . . . Every choice you make has a consequence!

Each consequence is either a And . . . Each consequence is either a cost or a benefit!

COSTS = What you must give up BENEFITS = What you will receive

So now you have to decide . . . How to best use your resources to meet your wants and needs! …we call this process “economizing”

+ = = = = Unlimited wants and needs Limited resources Scarcity Choices Natural, Human, Capital, Financial + = Scarcity = Choices = Consequences = Costs and Benefits

COSTS AND BENEFITS CONSEQUENCES CHOICES