1. What is ECONOMICS?

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

3. 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?

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

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

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

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

8. 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

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

10. 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!

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

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

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

14. So now you have to decide . . .
How to best use your
resources
to meet your
wants and needs!
…we call this process “economizing”

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

16. COSTS AND BENEFITS
CONSEQUENCES
CHOICES