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Published byDwight McGee Modified over 9 years ago
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What is Economics?
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Economics is…. the study of how people make decisions in a world where resources are limited. it is also the study of how things are made, bought, sold and used.
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2 Types of Economics Microeconomics: “the small picture”. (“micro” = small) decision making of individuals and individual businesses.
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2 Types of Economics Macroeconomics: “the big picture”. (“macro” = big) decision making by large units such as governments or whole industries.
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Let’s practice… Mr. and Mrs. Smith purchase a new T.V. Microeconomics or Macroeconomics? Microeconomics!
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Let’s practice… The Federal Reserve cuts interest rates on loans. Microeconomics or Macroeconmics? Macroeconomics!
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Let’s practice… Best Buy slashes prices on all T.V.’s 48” and bigger. Microeconomics or Macroeconomics? Microeconomics!
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Let’s practice… The airline industry asks the government for financial help. Microeconomics or Macroeconomics? Macroeconomics!
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What is an economic model? An economic model is a theory that tries to explain human economic behavior.
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Economic Systems… The way a country produces the things its people want and need is called an economic system. A country’s economic system determines how basic economic decisions will be made.
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Any idea what the United States economic system is called? The United States economic system is called: Free Enterprise Capitalism
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2 Major Economic Groups Producers: the individuals or groups that make or provide goods and services. Consumers: the individuals or groups that purchase and make use of the goods and services that are produced.
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In this unit we will explore… In this unit we will explore: Needs vs. Wants Scarcity Economic Decision Making Factors of Production Circular Flow of Economic Activity Factors that Promote Economic Growth Capitalism: History and Features
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