Professional Documents
Culture Documents
WHAT IS ECONOMICS?
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Why would you purchase more CocaCola when the price increases?
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scarcity
model
& choice
building
pitfalls
of economic
reasoning
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It forces us to make
CHOICES.
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OF PRODUCTION)?
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Land
Labor
Capital
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WHAT IS LABOR?
The mental and physical
capacity of workers to produce
goods and services, eg. lawyer,
accountant, economist, farmer,
welders, constructors, etc.
Entrepreneurs
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WHAT IS CAPITAL?
The
They
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The money
capital
used
to
purchase
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WHAT IS ENTREPRENEURSHIP?
Creative ability of individuals
that enables them to seek
profits by combining resources
& taking risks
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Land
Labor
Capital
Entrepreneurship organizes
resources to produce goods
and services
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WHAT IS ECONOMICS?
The study of how society
chooses to allocate its scarce
resources in order to satisfy
unlimited wants and needs
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WHAT IS MACROECONOMICS?
The branch of economics that
studies decision-making for the
economy as a whole,
eg. inflation, unemployment,
economic growth, etc.
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WHAT IS MICROECONOMICS?
The branch of economics that
studies decision-making by a
single individual, household,
firm, industry, or government
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MODEL BUILDING
Identify the problem
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WHAT CONCLUSION
CAN WE MAKE?
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ceteris paribus
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EXAMPLES OF CETERIS
PARIBUS
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We
A
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failing
to understand the
ceteris paribus assumption
confusing
causation
association with
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WHAT CONCLUSION
CAN WE MAKE?
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Eg.
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Certain
Eg.
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WHAT CONCLUSION
CAN WE MAKE?
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REFERENCE
B. Tucker, Economics for
Todays World, 6th Ed, Chapter 1
Irvin
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