Introduction to Economics
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This document discusses basic economics concepts and systems. It defines microeconomics as studying individual behavior of consumers and firms, while macroeconomics studies the aggregate behavior of the entire economy, such as unemployment, inflation and GDP. It also lists the three basic factors of production as land, labor, and capital. Entrepreneurship is described as investing time, natural resources, labor and capital which involves risks. The three basic economic problems are outlined as what to produce, how to produce, and for whom to produce.
Introduction to Economics
- 2. Your Text Here To Describe Economics Theories To Discuss Basic Economics Concepts To Discuss Economics Systems
- 4. Microeconomics Macroeconomics • Studies the aggregate behavior of the entire economy • Ex: unemployment, inflation, GDP, international trade, etc.
- 6. 1.LAND: Natural Resources – Water, natural gas, oil, trees 2. (all the stuff we find on, in, and under the land) 1.LABOR: Physical and Intellectual – 2. (Labor is manpower) 1.CAPITAL: Tools, Machinery, Factories – 2. (The things we use to make things – Human capital is brainpower, ideas, innovation) ENTREPRENEURSHIP: Investment $$$ – Investing time, natural resources, labor and capital are all risks associated with production 1 2 3 4
- 16. 3 Basic Economic Problems What to Produce? How to Produce? For Whom to Produce?
- 17. • Means choosing from the mix of goods & services to produce Example: • Should the economy devote resources to health, education or defense and police?
- 18. • Who will do the production and which method of production will be used. Example: • Should the economy use labor-intensive technique, and everyone has a job or use more efficient methods of production that involve the use of machines even if this means fewer jobs?
- 19. • Means who will consume the goods & services after they have been produced. • How will we decide who receive the output? • Should an economy be geared to provide goods & services to every person as equally as possible or should those who work hard get more? • What is the best method of distributing products to ensure the highest level of wants are met?
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