1. AP Economics Decisions, Decisions, Decisions
Mr. Gill
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2. What is Economics?
Science of Decisions
Why must decisions be made?

3. Scarcity!
Unlimited Needs + Limited Resources

4. Learning the Language Scarcity 4 Basic Questions
Trade Offs and Opportunity Costs
Costs and Incentives
Positive and Normative Economics
Factors of Production
The PPF- Production Possibilities Frontier
Economic Needs and Wants

5. The Four Basic Questions
What to Produce?
How to Produce?
How much to Produce?
How to Distribute?

6. Trade Offs Whatever is given up in a decision
Which way should he kick?

8. Opportunity Costs
The value of the next best alternative given up in a trade off.
I could be…

9. The Production Possibility Frontier

10. So… why take AP Economics?
Intellectual Curiosity
Academic Challenge
Importance to Global Community
Distinguishing Yourself
College Credit
Let’s face it… our government needs us!

11. Types of Economics Normative Positive Macroeconomics Microeconomics
Market (Free Enterprise)
Command
Mixed