Everyone is at the APPLE STORE!!!ĬHANGES IN PRODUCTIONIf we INCREASE land, labor, capital weINCREASE production– Many entrepreneurs invest profit back into productionIf we DECREASE land, labor, capital weDECREASE productionBUT WHY would we ever DECREASEproduction? EFFICIENTĬHANGES IN PRODUCTIONConsumption – howmuch we buy(ConsumerSovereignty) The DELL store is empty because…. Production Process Land Goods Labor Production/Manufacturing “Factory” Consumers Capital ServicesEntrepreneurshipĬapital Goods and Consumer GoodsCapital Goods: areused to make othergoodsConsumer Goods:final products that arepurchased directly bythe consumerĬHANGES IN PRODUCTIONSpecialization –dividing up productionso that Goods areproduced efficiently Hardee’s makes hamburgers, not shoes!!Nike makes shoes, nothamburgersĬHANGES IN PRODUCTIONDivision of Labor –different peopleperform different jobs You do yourto achieve greater job, and I willefficiency (assembly do my Job and we will be moreline). THREE parts to the Production ProcessFactors of Production – what we need to makegoods and servicesProducer – company that makes goods and/ordelivers servicesConsumer – people who buy goods and services(formerly known as “stuff”) Which Came First? can touch it) products we can buyBut what is “STUFF”? Services – work that is performed for othersįactors of ProductionSo, what do we need to make all of this Stuff?Ĥ Factors of ProductionLAND – Natural Resources– Water, natural gas, oil, trees (all the stuff we find on, in, and under the land)LABOR – Physical and Intellectual– Labor is manpowerCAPITAL - Tools, Machinery, Factories– The things we use to make things– Human capital is brainpower, ideas, innovationENTREPRENEURSHIP – Investment $$$– Investing time, natural resources, labor and capital are all risks associated with production PRODUCTION, cont.Production is how STUFF – Goods andmuch stuff an Services.individual, business,country, even the Goods – tangible (youWORLD makes. ProductionSo how do we get allthis “stuff” that wehave to decide about?Decisions, decisions… – This can be in time, energy, or even MONEYIf I buy a Then Ipizza… can’t afford the movies… Q: What is the opportunity cost of buying pizza? Opportunity Costs This is really IMPORTANT – when you choose to do ONE thing, its value (how much it is worth) is measured by the value of the NEXT BEST CHOICE. Trade-Offs, cont.IN YOUR JOURNAL: What COULD you havedone instead of come to school today?These are all Trade-Offs! Thanks for beinghere!Ī special kind of Trade-Off is an OPPORTUNITY COST =The Value of the Next Best Choice(Ex: Sleeping is the opportunity cost of studying for a test) These decisions involve picking one thing over all the other possibilities – a TRADE-OFF!
Introduction to economics pdf how to#
TRADE-OFFSYou can’t have it all (SCARCITY – remember?) so you have to choose how to spend your money, time, and energy. Wants and Needs, Needs and WantsNEEDS – “stuff” we must have to survive,generally: food, shelter, clothingWANTS – “stuff” we would really like tohave (Fancy food, shelter, clothing, bigscreen TVs, jewelry, conveniences. Why Choices?We make choices about how we spend our money, time, and energy so we can fulfill our NEEDS and WANTS.What are NEEDS and WANTS? What are resources?Definition: The things used to make othergoodsīUT, there’s a Fundamental Problem:SCARCITY: unlimited wants and needs but limited resourcesĬhoices, Choices Because ALL resources, goods, and services are limited – WE MUST MAKE CHOICES!!!! The Study of EconomicsMacroeconomics– The big picture: growth, employment, etc.– Choices made by large groups (like countries)Microeconomics– How do individuals make economic decisionsĮCONOMICS: 5 Economic QuestionsSociety (we) must figure outWHAT to produce (make)HOW MUCH to produce(quantity)HOW to Produce it(manufacture)FOR WHOM to Produce(who gets what)WHO gets to make thesedecisions? WHAT IS ECONOMICS?Economics – the study of how individualsand societies make decisions about waysto use scarce resources to fulfill wants andneeds.What does THAT mean?!!?!! INTRODUCTION TO ECONOMICSChoices, Choices, Choices.
0 kommentar(er)
