1. Basic Economic Concepts
The Study of Economics
Purpose: To identify the underlying reason for studying economics.

2. I. Goals
Identify the difference between macro and microeconomic studies and examples of each.
Define scarcity and shortages and provide examples.

3. I. What is Economics? Economics: Macroeconomics Microeconomics
The study of how people and society pursue satisfying their needs and wants.
Macroeconomics
Economics on a larger scale.
Ex. Trade, Government policy, and economic systems
Microeconomics
Economics on a smaller scale.
Ex. Businesses, specific markets, competition

4. II. Scarcity Scarcity: Shortage: Means “of limited amount.”
Everything is scarce.
No resource is limitless.
Shortage:
Anytime the amount demanded exceeds the amount supplied.
Shortages are temporary, scarcity is always there.
Scarcity Seinfeld:

5. II. Scarcity High Level of Scarcity Gold Oil Platinum
Low Level of Scarcity
Water
Rocks
Dirt

6. III. Scarcity Parking at the mall on Black Friday
Gas at gas stations after a hurricane

7. IV. Scarcity Reading Find and underline the title and subtitle.
What do you think the passage will be about?
Read the introductory section and indicate who, what, when, and where this article is written about.
What is the main idea of the passage?

8. IV. Scarcity Reading
Underline and restate portions of the article that further the argument the author is trying to make.
Underline and indicate the “so what?” portion of the reading. In other words why does the author believe this information is important?