Economics Social science concerned with how individuals, institutions, and society make optimal decisions under conditions of scarcity

Economics Intro: Basic Economic Concepts "The Stall" Seinfeld

Which of the following resources are scarce? Water Education Food Oxygen Paper Apples Computers Lumber Manure Rocks Trees Information Concert Love Medication Oil Choose yes or no for each of the following goods. Compare your decisions with a partner

Agriseek

The Fundamental Economic Problem Scarcity: is the condition that results from society not having enough resources to produce all the things people would like to have. Thus a cost must be born in order to obtain a resource when this condition exists. population video

Find a partner Imagine that you are producing a good or service…your choice. Brainstorm a list about what decisions you have to make

Fundamental Economic Questions 1.What do I produce? 2.How do I produce it? 3.For whom do I produce it for?

Factors of Production Land Labor Capital Entrepreneurs

How do we use these resources? Economic choices--with the goal of increased productivity to minimize scarcity. –Trade offs –Opportunity cost –Benefit-Cost analysis

Tradeoffs All of the other options available when making economic choices.

Opportunity Cost What was Kevin Durant’s opportunity cost of entering the draft after one year of college? What would have been his opportunity cost had he stayed in college?

I need 6 volunteers… Each volunteer will market a good to the class for 30 seconds. Each “consumer” will rate each good according to their own utility for that good.

“There is no such thing as a free lunch” WHY?

Marginal Cost-Benefit Analysis Systematic process for measuring the costs and benefits of a specific action

Economic Growth and Productivity

Production Possibilities Frontier

Review Economics Scarcity Fundamental economic questions Factors of production Tradeoffs Opportunity Cost There’s no such thing as a free lunch Benefit-Cost analysis Production possibilities frontier