Today's
Objectives
You will...
• Understand the expectations and policies of this class
by reviewing the course syllabus
• Brainstorm with a partner knowledge about economics
that you might already have, as well as questions you
have about the subject.
• Understand and identify the basic concepts of
economics by exploring the concepts of scarcity,
microeconomics vs. macroeconomics, positive and
normative economics, as well as the 7 basic principles
of economics
AN
ECONOMIC
WAY OF
THINKING
Chapter 1
What is
Economics?
Economics: the study of how people choose to
use their limited resources to satisfy their
unlimited wants.
• not always directly concerned with the stock
market, politics, or even money
• when you are trying to make the most of what
you have...you are doing economics.
An economy is a system use to manage those
limited resources
The Basic
Concepts of
Economics
• Scarcity
• Microeconomics &
Macroeconomics
• positive and normative
economics
• 7 Principles of Economics
Scarcity
Scarcity: The condition that
results because people have
limited resources but unlimited
wants.
What are some examples of
scarcity?
Microeconomics
vs.
Macroeconomics
Microeconomics: economic issues of individuals,
households, and/or businesses.
• deals with "smaller scale"
• Examples: National GDP rises/falls, Real Estate
Industry collapses, Depression/Recession, Stock
market crash
Macroeconomics: economic issues of a nation
• discusses the entire economy
• deals with "larger scale"
• Examples: Getting a raise, a company's end of the year
report, business starts/goes under, winning the lottery
https://www.youtube.com/watch?v=DJG-liA19eY
Positive and
Normative
Economics
Positive Economics: a type of economic analysis that
describes how things are. It is objective and fact based.
Positive Economic statements do not have to be correct,
but they do need to have the ability to be proved or
disproved.
Normative Economics: a type of economic analysis that
describes how things should be. It is subjective and based
on opinions and value judgements.
http://www.investopedia.com/video/play/positive
-and-normative-economics/
Positive
economics
Click to add text
Click to add text
Normative
economics
Group Activity
THE 7 BASIC
ECONOMIC
PRINCIPLES
What you're
gonna do...
• Get into 3 or 4
• You will be assigned an economic principle to create a
poster for and present.
• On this poster you need to provide:
•
definition
– example
– illustration
• Your poster needs to be colorful and eye catching
• Decide who will create the definition, who will come up
with an example, who will create the illustration (the
illustration can be related to the example), and who will
present the poster to the class
• As an audience you will take notes on the
presentations
Exit ticket:
3-2-1
• 3 things you learned
• 2 things you have questions on
• 1 thing you enjoyed or did not
enjoy about today's class