General Economics Why are you doing this course? – Will help you to look at the world around you and understand how things work. – Good introduction to Business (if you wish to do this next year). – Will help you in both Geography and History Are there IGCSE exams involved? – No! How will I be assessed? – Homeworks – Unit tests – End of year exam.

General Economics What do you need? – A4 folder. – Lined paper. – Speak English at all times.

Respect I respect you! – I shall prepare interesting lessons. – I promise to be nice. – I shall attempt not to raise my voice to you. You need to respect me and yourselves. – Listen and learn. – Get involved in the lesson; it will be even more interesting. We need to respect each other and the environment.

The Economic Problem

Objectives – What is the economic problem?

The Economic Problem What do you want? – Make a list of the top 10 things that you want this year. – How may of the 10 do you think that you will get this year?

The Economic Problem New car New house Imac Xbox 360 with Kinnect Holiday in Florida Holiday in Kenya Holiday in Stromboli New dog New elbow Dyson mini-vacuum cleaner

Michael Jackson Goes Shopping! How much does Michael think that he is worth? How much of the shop has Michael bought? How much do the two vases cost?

The Economic Problem When he died Michael Jackson was effectively broke (ran out of money). He had unlimited wants but even he had finite resources to pay for them. He, therefore, ran out of money.

The Economic Problem The Economic Problem is: – We (you, me, the people of this school, Peru, the World) have unlimited wants and yet finite resources with which to achieve them. We cannot have everything we want. It is called Scarcity

Opportunity Cost

Objectives – What is opportunity cost?

Opportunity Cost Opportunity cost is the cost of giving up the next best option. – When you go home tonight the opportunity cost of doing your homework, is that you cannot watch TV. – Write down 3 opportunity costs that you have experienced.

What is the economic problem? What is opportunity cost?