Jack Wheatley
Scarcity
The fundamental problem of having seemingly unlimited
human wants and needs in a world of limited resources
Society does not have enough resources to fulfill all human
wants and needs
E.g. Helium
• Often used as cooling agent for nuclear reactors
• Only about 30 years of Helium left for use on Earth
• Finite element; we will eventually run out
Need to find alternate resources for common wants and needs
Most things are finite; we need alternate resources for every
time resources come to and end, or an unlimited resource
Wants vs. Needs
Something that is
desired
Something that is
necessary for survival
iPhone, XBOX, Garrett’s
cow costume
Food, shelter, water
Unlimited wants
Limited resources
(needs)
• Must distinguish wants from needs
• What is necessary in today’s society?
• Represent overall concept of demand
Visual – Scarcity
Visual – Wants and Needs
Connection – Scarcity
Earlier this month, Obamacare website crashed
Though the reason was proved not to be by traffic on the
website, this is a vague example of scarcity – when a
website crashes
So many people want to use a product (website), but
there are limited resources (workers keeping it updated),
so it crashes.
Another example: Everyone wants a new pair of shoes,
but there are only limited resources to make the shoes.
When they run out of these resources, they can’t make
the shoes, and not everyone can have them
Connection – Wants vs. Needs
Your annoying group of friends is complaining at
a party that the pizza is from Domino’s and not
from Pizza Hut
Pizza Hut pizza: WANT
Pizza (food): NEED
You need the food in order to live/survive. Pizza
from Pizza Hut is just a privilege.
Conclusion: Tell your friends to stop complaining
about the origin of the pizza, and just be grateful
to have the pizza.
GDP
By: Samson Tessema
Definition
GDP(Gross Domestic Product) – the
market value of all officially
recognized final goods and services
produced within a country in a given
period of time
Explain Term/Concept
It is used to show how well a country’s
economy is doing
The total number of goods and
services produced over a specific
period of time
Visual
‘Murica
Connection
GDP=AEW
AEW=Average Economic Wealth
Stock Market/Dow Jones
industrial average
Kj McBride
Definitions
Stock market – a stock exchange
Dow Jones Industrial average – an indicator of
stock market prices; based on the share values
of 30 blue-chip stocks listed on the New York
Stock Exchange
Stock market
• When a company is in need of money they
can sell part ownership in the company with a
claim
• As the company’s funds increase the claim you
have with the company increases too
• If the company’s funds decrease so does the
claim
Dow Jones Industrial Average
• The overall indicator of the condition of the
stock market
• It is based on 30 stocks selected by editors of
the wall street journal
• They are the 30 most actively traded stocks on
the market
Visual
connection
We are using the stock market in class
It
Is
Fun
Microeconomics
• the branch of economics
dealing with particular
aspects of an economy, as
the price-cost relationship
of a firm
Macroeconomics
• the branch of economics
dealing with the broad and
general aspects of an
economy, as the
relationship between the
income and investments of
a country as a whole
Microeconomics
• analysis of the decisions made by individuals
and groups, the factors that affect those
decisions, and how those decisions effect
others
Macroeconomics
• examines the economy as a whole and
answers questions such as 'What causes the
economy to grow over time?
How can you remember?
• Micro means small and it is the analysis of
individuals and small groups
• Macro means large and it examines the whole
economy
Corporation
Company or group of people authorized to act
as a single entity (legally a person) and
recognized as such by law
What is a Corporation?
• Created by a group of shareholders who own
corporation
– Shareholders represented by holding of common stock.
• Shareholders elect a board of directors (one vote per
share) who appoint and oversee management of the
corporation.
• Majority of corporations are setup with the goal of
providing a return for its shareholders
– Some are nonprofit
• When you purchase stock you are becoming part
owner in a corporation.
Connection
Common Stock
Shares entitling their holder to dividends that
vary in amount and may even be missed
depending on the company’s future
What is Common Stock?
Connection
Preferred Stock
Stock that entitles the holder to a fixed dividend,
whose payment takes priority over that of
common stock dividends
What is Preferred Stock?
• Class of ownership with higher claim on earnings
than common stock. Preferred stock generally has
a dividend that must be paid out before dividends
to common
• Shares usually do not have voting rights.
• Details of structure specific to individual
corporations
• Also known as "preferred shares".
• Negatives: no voting, less appreciation
Connection
Wouldn’t you much rather prefer having money
first rather than later?
JOSH SHIKOFF

A free market economy is an economy in
which decisions regarding investment,
production and distribution are based on
supply and demand, and prices of goods and
services are determined in a free price system
(economic system where prices are set by the
interchange of supply and demand)

That means people can freely buy and trade
goods and services. The price of each good or
service is determined not by the government
but by demand. Demand is a measure of how
many people want to buy a particular good or
service.

Ebay is an example of a Free Market Economy because the
people control the market by making their own prices. The
price posted is dependent on the supply and demand of the
product. For example, if someone posts a Honus Wagner
card it will sell for more since not many people are selling
them and there is a high demand. One the other hand, a
normal Ryan Howard card will have less demand therefore
it will have a greater supply that sells for cheaper.
By: Garrett Cantor


The inputs that are used in production of
goods or services in the attempt to make a
profit – Investopedia
Inputs are everything used from beginning of
production to end




Land – Naturally occurring goods
Labor – Effort put into production (mostly
human) (Intellectual, social)
Capital – Human made goods used in
production
Subject of Labor – objects transformed by labor
Factor
x Factor =
Product
Capitalism
Capitalism is an economic and political
system in which a country’s trade and
industry are controlled by private owners
for profit, rather than by the state.
By: A.J. Drobot
Explaining Capitalism in
Understandable Terms
• Economic system based on private ownership on the means of
production and capital goods. (Durable good used in production)
• The parties usually determine the prices at which assets, goods, and
services are exchanged.
• There are three types of capitalism; Laissez-faire Capitalism, Welfare
Capitalism, and State Capitalism.
• Capitalism is defined as a social and economic system in which capital
assets are mainly owned and controlled by private persons.
• Labor is purchased for money wages, and the capital gains accrue to
private owners, and the price mechanism is utilized to allocate capital
goods between uses.
Everything
Everything
Everything
Connection
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Practically everything in your life
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Everything
Supply and Demand
By: Jack Brown
Definition
In microeconomics, supply and demand is an
economic model of price determination in a
market. It concludes that in a competitive
market, the unit price for a particular good will
vary until it settles at a point where the quantity
demanded by consumers (at current price) will
equal the quantity supplied by producers (at
current price), resulting in an economic
equilibrium for price and quantity.
Definition Simplified
The higher the quantity of a certain good is, the
lower the cost. The lower the quantity of a
certain good is, the higher the cost.
Concept
If Juanita has 1 apple, she might sell it for 5$
because she only has one.
If Jibbly has 5 apples, he might sell them for 3$
each because he has more of them
Visual
Connection
/l\
/ l \
l
l
l
Quantity
$$$
l
l
l
\ l /
\l/
Jack Wheatley
Scarcity
The fundamental problem of having seemingly unlimited
human wants and needs in a world of limited resources
Society does not have enough resources to fulfill all human
wants and needs
E.g. Helium
• Often used as cooling agent for nuclear reactors
• Only about 30 years of Helium left for use on Earth
• Finite element; we will eventually run out
Need to find alternate resources for common wants and needs
Most things are finite; we need alternate resources for every
time resources come to an end, or an unlimited resource
Wants vs. Needs
WANT:
NEED:
Something that is desired
Something that is necessary
for survival
iPhone, XBOX, Garrett’s cow
costume
Unlimited wants
Food, shelter, water
Limited resources (needs)
• Must distinguish wants from needs
• What is necessary in today’s society?
• Represent overall concept of demand
Visual – Scarcity
Visual – Wants and Needs
Connection – Scarcity
Earlier this month, Obamacare website crashed
Though the reason was proved not to be by traffic on the
website, this is a vague example of scarcity – when a
website crashes
So many people want to use a product (website), but
there are limited resources (workers keeping it updated),
so it crashes.
Another example: Everyone wants a new pair of shoes,
but there are only limited resources to make the shoes.
When they run out of these resources, they can’t make
the shoes, and not everyone can have them
Connection – Wants vs. Needs
Your annoying group of friends is complaining at
a party that the pizza is from Domino’s and not
from Pizza Hut
Pizza Hut pizza: WANT
Pizza (food): NEED
You need the food in order to live/survive. Pizza
from Pizza Hut is just a privilege.
Conclusion: Tell your friends to stop complaining
about the origin of the pizza, and just be grateful
to have the pizza.
DI$POSABLE INCOME
Miriam van der Spek
DEFINITION
• The part of a persons income remaining after
deducting personal income taxes.
Or
• The portion of an individual’s income over
which the recipient has complete discretion.
Explanation:
• Disposable income is the money that a person
has from their paycheck (after indirect taxes),
investments, etc.
• Unfortunately, there are required payments to be
paid, as well as those which we choose to pay for.
• Required payments are things like taxes.
• “Other” payments are things like Netflix.
• Sometimes disposable income goes to those
payments that seem to fit in both categories,
such as electric or heating bills.
Visual
Before indirect taxes
After indirect taxes
YOU
YOU
Obligatory
payments
Voluntary
payments
Connection
• Disposable
Income: The
income you
can throw
away to
where you
want
YOU
BILLS