1. The greatest powerpoint about economic principles of all time!
Intro to Economics
The greatest powerpoint about economic principles of all time!

2. Concepts Covered What is economics? What is scarcity?
What are the three questions we answer as economists?
What are the four factors of production?
What is GDP?

3. What is Economics? – Google Images

4. So what should economics class be like?

5. Economics
The study of how people try to satisfy their unlimited wants using limited resources

6. What would you have if you could?

7. Scarcity This is the fundamental problem in economics
Scarcity is the difference between our unlimited wants and our limited resources.
This is not the same as a shortage

8. This is what it’s like trying to solve the world’s problems as an economist

9. What would the opposite of scarcity look like?

10. Because of limited resources
“Nothing in this world is free.”
“Money doesn’t grow on tree’s”
“It’s too good to be true.”
“There is no such thing as a free lunch.”
There is no such thing as a free iPod touch

11. Now that we’ve agreed there’s a problem
Congratulations, you’re an economist now.

12. Our three main questions:
WHAT to produce?
HOW to produce it?
WHO to make it for?

13. Let’s say we have a class tree:
WHAT?
HOW?
WHO?

14. Factors of Production Land (stuff from nature)
Capital goods (goods that make other goods, and money [capital])
Labor (humans working)
Entrepreneurial ability (humans starting businesses)

15. Entreprenuership Read pg. 11 – Under Armour
Let’s answer question #2 together today

16. All of this adds up to GDP GDP stand for Gross domestic product
The dollar value of all final goods and services produced within a country’s borders in one year
Gross –
“How much money did your lemonade stand make?”
Gross vs. Net
Domestic –
Whatever is produced within our borders
Product –
Final products are counted, not products used to make other products

17. What is a final good? A good which is consumed immediately
Is the Jimmy John’s knife a final good?

18. What does GDP look like?

19. This is real GDP, adjusted for inflation

20. Real vs. NOMINAL
Nominal – not adjusted
Real GDP - adjusted

21. Comparing GDPs

22. What does this map portray?

24. What is GDP per capita?

25. Is GDP a good measure of a country’s success?
We will cover this tomorrow