1. What is ECONOMICS ?????

2. ECONOMICS
The study of how to meet unlimited wants and needs with limited resources.

3. Hmmm . . .
All I want to know is

4. I want a lot of stuff but I can’t afford it all?
What do I do if . . .
I want a lot of stuff but I can’t afford it all?

5. You have to deal with scarcity!
Well, then
You have to deal with scarcity!

6. SCARCITY
NOT ENOUGH
RESOURCES
TO COVER ALL YOUR
WANTS AND NEEDS

7. By the way . . . Everyone has to deal with scarcity, including
Individuals
Families
Schools
Communities
Businesses
Nations

8. BASIC ELEMENTS USED TO CREATE GOODS AND SERVICES
And RESOURCES are
BASIC ELEMENTS USED TO CREATE GOODS AND SERVICES

9. There are different types of ECONOMIC RESOURCES
Natural
Gifts of nature – sunlight, water, land, trees, etc. used to produce goods and services
Human
Physical and mental labor people use to produce goods and services
Capital
Buildings, machines, technology and tools used to produce goods and services

10. financial capital Is money a resource? Money is a resource called
which allows you to purchase other resources

11. Because you have to deal with scarcity, you have to make
Ok, now back to scarcity . . .
Because you have to deal with scarcity, you have to make
CHOICES!

12. Every choice you make has a
And remember . . .
Every choice you make has a
consequence!

13. Each consequence is either a
And . . .
Each consequence is either a
cost or a benefit!

14. COSTS
= What you must give up
BENEFITS
= What you will receive

15. So now you have to decide . . .
How to best use your
resources
to meet your
wants and needs!

16. You are starting to understand
CONGRATULATIONS!
You are starting to understand
BASIC
ECONOMICS

17. + = = = = Unlimited wants and needs Limited resources Scarcity Choices
Natural, Human, Capital, Financial + =
Scarcity =
Choices =
Consequences =
Costs and Benefits

18. For optimal use of resources Requires decision-making Scarcity

19. ARE USED TO PRODUCE GOODS AND SERVICES
NATURAL
HUMAN
CAPITAL
ECONOMIC RESOURCES

20. COSTS AND BENEFITS
CONSEQUENCES
CHOICES