1. Economics Economics is the social science that analyzes: Production
Day 1
Economics
Economics is the social science that analyzes:
Production
Distribution
Consumption
of goods and services

3. Economic Concept The more we Spend The more we Produce
The more our country produces
The stronger and more stable our country is

4. GOOD

5. Gross Domestic Product
Gross – Total
Domestic – Home, within the country
Product – What is made
How to measure an Economy
Is the Economy providing goods and service? How much?
Not looking at what is made
Looking at what is purchased

6. Gross Domestic Product
Why measure the economy?
If the economy is doing well, then….
The citizens of the economy are doing well
Can the opposite of this statement be justified?

10. GDP Formula Y = C + I + E + G Y = Gross Domestic Product
C = Consumer Spending
I = Investment (by businesses)
E = Exports – Imports
G = Government Spending

11. E Exports – Imports Export = What a country SELLS to another country
Import = What a country BUYS to another country
Export more than Import
The economy is producing more goods than other countries
Import more than Export
The economy is producing less goods than other countries E

12. I GDP Investment by Business Not saving , investing in the business
Spending money
Buy new machines
New Computers and Software
Hire engineers
Hire Workers
Build a new Warehouse

13. GDP Formula Y = C + I + E + G Y = Gross Domestic Product
C = Consumer Spending
I = Investment (by businesses)
E = Exports – Imports
G = Government Spending

16. Not a standard measure of living

17. GDP High GDP = Stable and Strong Country
People have money to spend
LOW GDP = unstable and weak Country
People have less money to spend