Section 1 The Fundamental Economic Problem第1节的基本经济问题-精品文档
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A want-some things that we would like to have.
Entertainment, vacations, clothing, shoes, PS3s, jewelry…
Things that make life more “comfortable and enjoyable FUN”
Goods
Box 2 cont…
things that can be made or manufactured/used to satisfy our wants and needs (books, cars)
Capital goods
the things used to manufacture other goods (tools, machinery)
The alternative you face if you decide to do one things rather than another
Ex: economic choice to buy a DVD player. Or more pollution-free air means less driving Taking more time to study means having less time to…
Why does the government pay so much attention to the economy???
B/c resources are limited
BOX 2
Needs and Wants
A need is something that we “need”
Required for survival such as food, clothing and shelter
To do this, economists create an economic model called a COST-BENEFIT ANALYSIS-
Analysis requires you to compare marginal costs and marginal benefits of a decision…
Measures of Costs
Fixed costs:
Costs or expenses that are the same no matter how many units are produced.
Ex: rent, car payment
Variable costs:
Expenses that change with the # of products produced!
Economics have a term for this broad measure of cost: OPPORTUNITY COST (pg 59 too)
Cost of the next best use of your time or $ when you choose to do one thing rather than another.
Change in total revenue (extra revenue) that results from selling 1 more unit of output.
Marginal Benefit
We usually do something b/c we expect to achieve some benefit.
Most economic decisions are made by people looking out for their own and their families’ self-interests!
Variable costs: parts to make the tv, or to ship the tv… keep up with demand
Total costs: rent + parts and shipping…
Business use 2 key measures of revenue:
We are concerned with the marginal benefitThe additional or extra benefit associated with an action.
Once we define the marginal costs & the benefits of a decision, we can analyze the decision.
-Surplus -When supply is greater than demand
-What happens to price?
Section 2: Making Economic Decisions (on back)
Trade-offs: (see page 56/59 “economic terms”)
We are going to manufacture TV's.
Fixed costs: remain
the same no matter how many tv’s we sell or don’t sell…
The rent of our building that makes the tv’s.
Time, not just money!
If you are going to clean your house, you will need?
Not only that but also, the time you could spend doing other things like studying or visiting with friends…
The study of how we make decisions in a world where resources are limited
Why study economics???
Well informed citizens do more than just vote, we should know about and make smart economic choices…
U.S. has this problem and so do you and I!
rational consumer asks whether or not he or she can afford the expensive car or the cheaper car
Brand name or generic
What is Economics
Basic Economics
Section 1: The FuБайду номын сангаасdamental
Economic Problem
Economics
The system that society uses to produce and distribute goods and services
Spend more than just cost of books, transportation, tuition…
Biggest cost is full-time income that you will not be able to earn because of the time you will have to spend studying and going to class and other time-consuming activities…
Putting a Price on Things
box 4
Price or VALUE is based on two basic factors
1. Supply
2. Demand
-Supply
-the amount of a good or service that is available for consumers to buy
1. Total
# of units sold manipulated by the average price per unit!
42 units of a product are sold at $8 each, the total revenue is ___?
$336
2. Marginal
--Market or Equilibrium Price
this is the point
at which
supply and demand
meet and price
is determined
Effects of Price
-Shortages -when demand is greater than supply -What happens to price? •It goes up
BIG PICTURE?
A country wants more $ to go to education, so less money has to go to medical research or National Defense
You are going to college after high school
Being an Economically Smart Citizen!: 3 terms to describe our economy!
The US uses a market economy-
economic system in which supply, demand and prices help people make decisions and use resources.
Total cost is $2500 to produce 5 tv’s
$3000 to produce 6 tvs…
What is the marginal cost of the additional (6th) unit?
$500!
Let’s put this all together!
or things that made this school: bulldozers, trucks, hammers..
Consumer goods
goods meant to be sold to consumers for use
Services
work that is done for someone for a certain price
-Demand
-the amount of a good or service that consumers are willing to buy
Determining Price
-Price is determined by comparing the amount of demand to the amount of supply and finding an amount where they are equal
What is scarcity?
What is the fundamental economic problem?
issue of scarcity
Scarcity- this occurs when ever we do not have enough resources to produce all of the things we would like to have
Ex: Wages, energy bill…
Total costs:
Add fixed costs to variable costs we have TOTAL costs!
Final and crucial cost remains:
Marginal Costs: Extra or additional cost of producing one additional unit of output…
Entertainment, vacations, clothing, shoes, PS3s, jewelry…
Things that make life more “comfortable and enjoyable FUN”
Goods
Box 2 cont…
things that can be made or manufactured/used to satisfy our wants and needs (books, cars)
Capital goods
the things used to manufacture other goods (tools, machinery)
The alternative you face if you decide to do one things rather than another
Ex: economic choice to buy a DVD player. Or more pollution-free air means less driving Taking more time to study means having less time to…
Why does the government pay so much attention to the economy???
B/c resources are limited
BOX 2
Needs and Wants
A need is something that we “need”
Required for survival such as food, clothing and shelter
To do this, economists create an economic model called a COST-BENEFIT ANALYSIS-
Analysis requires you to compare marginal costs and marginal benefits of a decision…
Measures of Costs
Fixed costs:
Costs or expenses that are the same no matter how many units are produced.
Ex: rent, car payment
Variable costs:
Expenses that change with the # of products produced!
Economics have a term for this broad measure of cost: OPPORTUNITY COST (pg 59 too)
Cost of the next best use of your time or $ when you choose to do one thing rather than another.
Change in total revenue (extra revenue) that results from selling 1 more unit of output.
Marginal Benefit
We usually do something b/c we expect to achieve some benefit.
Most economic decisions are made by people looking out for their own and their families’ self-interests!
Variable costs: parts to make the tv, or to ship the tv… keep up with demand
Total costs: rent + parts and shipping…
Business use 2 key measures of revenue:
We are concerned with the marginal benefitThe additional or extra benefit associated with an action.
Once we define the marginal costs & the benefits of a decision, we can analyze the decision.
-Surplus -When supply is greater than demand
-What happens to price?
Section 2: Making Economic Decisions (on back)
Trade-offs: (see page 56/59 “economic terms”)
We are going to manufacture TV's.
Fixed costs: remain
the same no matter how many tv’s we sell or don’t sell…
The rent of our building that makes the tv’s.
Time, not just money!
If you are going to clean your house, you will need?
Not only that but also, the time you could spend doing other things like studying or visiting with friends…
The study of how we make decisions in a world where resources are limited
Why study economics???
Well informed citizens do more than just vote, we should know about and make smart economic choices…
U.S. has this problem and so do you and I!
rational consumer asks whether or not he or she can afford the expensive car or the cheaper car
Brand name or generic
What is Economics
Basic Economics
Section 1: The FuБайду номын сангаасdamental
Economic Problem
Economics
The system that society uses to produce and distribute goods and services
Spend more than just cost of books, transportation, tuition…
Biggest cost is full-time income that you will not be able to earn because of the time you will have to spend studying and going to class and other time-consuming activities…
Putting a Price on Things
box 4
Price or VALUE is based on two basic factors
1. Supply
2. Demand
-Supply
-the amount of a good or service that is available for consumers to buy
1. Total
# of units sold manipulated by the average price per unit!
42 units of a product are sold at $8 each, the total revenue is ___?
$336
2. Marginal
--Market or Equilibrium Price
this is the point
at which
supply and demand
meet and price
is determined
Effects of Price
-Shortages -when demand is greater than supply -What happens to price? •It goes up
BIG PICTURE?
A country wants more $ to go to education, so less money has to go to medical research or National Defense
You are going to college after high school
Being an Economically Smart Citizen!: 3 terms to describe our economy!
The US uses a market economy-
economic system in which supply, demand and prices help people make decisions and use resources.
Total cost is $2500 to produce 5 tv’s
$3000 to produce 6 tvs…
What is the marginal cost of the additional (6th) unit?
$500!
Let’s put this all together!
or things that made this school: bulldozers, trucks, hammers..
Consumer goods
goods meant to be sold to consumers for use
Services
work that is done for someone for a certain price
-Demand
-the amount of a good or service that consumers are willing to buy
Determining Price
-Price is determined by comparing the amount of demand to the amount of supply and finding an amount where they are equal
What is scarcity?
What is the fundamental economic problem?
issue of scarcity
Scarcity- this occurs when ever we do not have enough resources to produce all of the things we would like to have
Ex: Wages, energy bill…
Total costs:
Add fixed costs to variable costs we have TOTAL costs!
Final and crucial cost remains:
Marginal Costs: Extra or additional cost of producing one additional unit of output…