what is economics? teks/notes

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What is Economics? TEKS/Notes UNIT 2

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What is Economics? TEKS/Notes. UNIT 2. Fundamental Economic Problem facing all societies is scarcity - society not having enough resources to produce all the things people want Unlimited Wants and L imited R esources force societies and individuals to make choices . - PowerPoint PPT Presentation

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Page 1: What is Economics?  TEKS/Notes

What is Economics? TEKS/Notes

UNIT 2

Page 2: What is Economics?  TEKS/Notes

Scarcity & Choice • Fundamental Economic

Problem facing all societies is scarcity- society not having enough resources to produce all the things people want

• Unlimited Wants and Limited Resources force societies and individuals to make choices

Page 3: What is Economics?  TEKS/Notes
Page 4: What is Economics?  TEKS/Notes

• Basic Economic Questions

Each society must answer three basic questions

• 1. What to Produce?-military equipment, food, clothing or housing

• 2. How to produce?- Mass production or high labor

• 3. For whom to produce?- who gets what

Page 5: What is Economics?  TEKS/Notes
Page 6: What is Economics?  TEKS/Notes
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Required to Produce the Things We Want or Need

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Trade Offs-Alternatives given up when one option is chosen rather than another.-An exchange of one thing in return for another.

Page 9: What is Economics?  TEKS/Notes

Opportunity Cost Cost of the next best

alternative use of money, time, or resources when one choice is made over another

• A diagram representing various combinations of goods and /or services an economy can produce when all production resources are fully employed (P. 123 Figure 1.6)

Production Possibilities Curve

Page 10: What is Economics?  TEKS/Notes

Production Possibility Frontier Curve