When you hear the Stones sing this… what goes through your mind????

What is Economics???? Make a T-chart for LIFE!! In life I WANT: In life I NEED: -Heels - … -Water - … At least 5 things

How can we satisfy unlimited wants with limited resources? The people who can figure that our are called economists. They are smart… …& they are loaded We can make good CHOICES that negate the need to rely 100% on economists

Needs: food, clothing, shelter = tools for survival Wants: anything that’s not a “need”… cars, I-everything, jewelry, Uggs, ray-bans, etc… Organizing “wants” vs. “needs” in societies is the main focus of economics

Economics: study of how individuals, families, businesses & societies use limited resources to fulfill their unlimited wants. It is divided into Microeconomics & Macroeconomics. you Newtown us CR Microeconomics Macroeconomics

Microeconomics Deals with behavior & decision making by small units such as individuals & firms VS.

Macroeconomics Deals with the economy as a whole & decision making by large units such as gov’ts =

The Problem of Scarcity fixed At any time, a fixed (limited) amount of resources is available People have competing uses for these resources scarcity This situation results in scarcity

Scarcity: people do not & cannot have enough income & time to satisfy their every want What you buy as a student is limited by the amount of income you have (or don’t have!) Even if 100% of the world was rich, scarcity exists – Even the richest person doesn’t have unlimited time

Scarcity always exists while things like shortages are temporary example: a fire burns down a McDonalds so locals can’t buy burgers (shortage) … In time, that McDonalds will be rebuilt & continue producing burgers.

Want, Willingness, Ability Confused as to whether you should make a purchase? Not sure if you “need” or “want” something?... The Key Is All Three: Want, Willingness, Ability

?? Think About It ?? What is one thing you WANT to buy, but are not willing or able to buy? What is one thing you are WILLING to buy but do not necessarily want, or are not able to buy? What is one thing you are ABLE to buy, but do not necessarily want, or are not willing to buy? HOUSE LIFE INSURANCE FLU SHOT In a blank area of your handout…. Want:Willing:Able:

Key Terms to Check Off *YOU NEED: definition & 1 memory device (how will you remember/study this term)* Economics Want Need Microeconomics Macroeconomics Scarcity * #22: Fixed Amount * #23: Want, Willingness, Ability * #24: Shortage Add to your packets

What is Economics? In life I WANT: In life I NEED: Needs: food, clothing, shelter = __________________________ Wants: ___________________________________________ cars, I-everything, jewelry, Uggs, ray-bans, etc… _______________“wants” vs. “needs” in ___________________ is the main focus of ___________________________ __________________________: study of how individuals, families, businesses & societies use limited resources to fulfill their unlimited wants. - It is divided into __________________________ & ___________________________. ____________________ Deals with behavior & decision making by small units such as individuals & firms _________________________ Deals with the economy as a whole & decision making by large units such as gov’ts The Problem of Scarcity _____________ - At any time, a _____________ (limited) amount of resources is available - People have competing uses for these resources - This situation results in scarcity ______________: people do not & cannot have enough income & time to satisfy their every want -What you buy as a student is __________________by the amount of income you have -Even if 100% of the world was rich, scarcity exists -Even the richest person doesn’t have unlimited time Scarcity always exists while things like ___________________________are temporary Example: _________________________________________________________ _________________________________________________________ Want, Willingness, Ability The Key Is All Three: