1. FOUR KEY ELEMENTS Of
ECONOMICS

2. Person who studies all that goes on within the functionality of our economic systems and choices
Concerned with how the goods and services are produced and distributed
ECONOMISTS

3. ECONOMICS A social science
Observes the behavior of people as they deal with the basic issue of limited resources and unlimited wants
The study of human effort to satisfy seemingly unlimited and competing wants through the careful use of relatively scarce resources
Studies the decisions that people (individuals) make about using a variety of resources
ECONOMICS

4. Involves the effects of economic forces upon the individual parts of the economy
Businesses
Households
Individual
Microeconomics

5. Involves the impact of change on the economy as a whole rather than on an individual part
Unemployment
Inflation
GDP
Money Supply
Business Cycle
Macroeconomics

6. The Four Key Elements Economics Analyze Explanation Description
Predictions
Economics

7. Analyze Scrutinize all aspects of economic activities
Discover why things work
How things happen
Why do some people earn higher incomes
How do taxes affect people’s desire to work and save
Recommended Family size
Analyze

8. Explanation Communicate newly acquired knowledge to others
Really answer: the HOW and WHY
How people are spending less
Why or why not an economic measure is performing in the expected manner
Explanation

9. HOW IS IT WORKING

10. If there is a common understanding of the way our economy works, some economic problems will be easier to fix

11. Economics is a study of both what is happening and what tends to happen, it can forecast what may happen in the future, including the most likely effects of different actions
Predictions

12. Predictions

13. The social science concerned with the efficient use of limited/scarce resources to achieve maximum satisfaction of human economic wants
ECONOMICS

14. In other words the study of scarcity and choice
In other words the study of scarcity and choice. Every economic issue involves, at its most basic level, individual choice—decisions by individuals about what to do and what not to do.
ECONOMICS