1. If I were to write a check to you right now for an amount that was large enough so that you would never have to worry about money ever again, what is the minimum amount of how much would it have to be?

2. Your most unique purchase

3. What do the following people have in common?

5. MC Hammer

6. TLC

7. Donald Trump

8. Henry Ford

9. Kim Basinger

10. Walt Disney

11. Toni Braxton

12. Wayne Newton

13. What’s Economics?
February 2018

14. 3 Basic Needs
Economists say that everyone has 3 basic needs, what do you think they are?
Food/Water
Clothing
Shelter

15. Limitless, endless What does infinite mean? What does finite mean?
Limited

16. Human beings have UNLIMITED wants/desires
Discussion Question:
Human beings have UNLIMITED wants/desires
Agree or Disagree and why?

17. 1 Important Assumption in Economics:
People have unlimited wants

18. Anything that people can use to make or obtain what they need or want
Resource – Definition
Anything that people can use to make or obtain what they need or want
Examples

19. Factors of Production
Things used to produce goods & services.
Also known as resources

20. Types of Resources
5 types of Resources:

21. Land
Natural Resources (all things found in nature) that can be used to make or obtain things
Examples

22. Labor
Work that people do
Examples

23. Man-made items that people use to make other goods and/or services
Capital
Man-made items that people use to make other goods and/or services
Examples

24. Capital

25. Technology
Use of science to develop new products & new methods for producing & distributing goods & services

26. Organizing/managing resources
Entrepreneurship
Organizing/managing resources

27. Infinite =
Unlimited
List as many tangible (things you can touch) things that you can think of that are infinite

28. 2nd Major Assumption in Economics:
All Resources are Limited/Finite

29. We have to make decisions
Unlimited Desires +
Limited Resources
Therefore:
We have to make decisions

30. BASIC PROBLEM OF ECONOMICS
Scarcity
People do not & cannot have enough income, time, or resources to satisfy their every desire & so we have to make decisions

31. Economics – Formal Definition
The study of how people & nations make choices about how to use scarce resources to fill their needs & wants

32. Practiced by people in suits & offices $
Economics is not just . . .
Taxes
Company decisions
Practiced by people in suits & offices $

33. C.R.E.A.M Economics is . . . Ubiquitous (everywhere) Inescapable
Cash Rules Everything Around Me

34. Economics is. . . (cont’d) Decision-making
Making informed decisions based on information made available to you in order to make the most of what you have so you can get all of what you need & much of what you want

35. Trade-Offs
All of the things that had to be given up when a decision was made.

36. Opportunity Costs
The next best alternative that had to be given up when a decision is made

37. Opportunity Costs Cont’d
Doing the next homework assignment
List your opportunity cost

38. What is gained by making a particular choice
Opportunity Benefit
What is gained by making a particular choice

39. Opportunity Benefits Cont’d
List your Opportunity Benefit to doing tomorrow’s homework assignment