1. Product Markets, Factor Markets, & Market Economies Explained
Brought to you by:
Marsa Berros
Jonathan Borja
Kelsey Meagher
Mike Tatarian

2. Quick Break Down
Economics is the study of the choices people make to satisfy their needs and wants.
Microeconomics
Individual & Business level
Macroeconomics
Behavior of entire economics
Major Players in the Economy
Consumers People who buy products
Producers Manufacturers of products

3. Basic Economic Questions
What to produce?
How to produce it?
For Whom to produce it?
Factors of Production are the resources used to produce the goods. These include:
Natural Resources
Human Resources
Capital Resources
Entrepreneurship

4. Markets
Market: is any institution that brings buyers and sellers together.
Product Market: Anything that gets people together to buy and sell markets.
Factor Market: Anything that gets people together to buy resources.

5. Trade Offs and Opportunity
Trade Off

• One good is sacrificed for another

Opportunity Costs
The value of the next best alternative that is given up in the trade-off.
Example: You can either buy stocks in Starbucks or Nike shoes.

6. The Beckett Deal
Anthony Beckett should endorse the shoes so that his fame will attract young athletes and fans. The use of affordable labor through Layman would decrease the cost while still maintaining an attractive image.

7. Approximate Break Down of CostCosts
Two pounds of rubber is $1.56
One pound of cotton is 62 cents
Unskilled labor will cost $8 per hour
Two hours to make a pair of shoes
Total cost of the shoe is $18.18
The product could be sold for approx. $40.00 meaning the capital would be approx. $20.00.

8. Endorsement Graph

9. The End