EconomicsEconomics

Video: Understanding Understanding Economics: What is Economics?Economics: What is Economics?

What 2 Watch 41. Is there an unlimited amount of human

resources?2.What is the science that deals with the

production, distribution, and consumption of goods and services?

3.What is production?4.What terms refers to how people use the

goods and services that are produced?5.What determines who gets the goods

and services? Who gets what? Who gets more? And who gets less?

(1:39)

Is there an unlimited amount of human resources?

No

What is the science that deals with the production, distribution, and

consumption of goods and services?

Economics

What is production?

How goods are made with resources or how services are

performed

What terms refers to how people use the goods and services that are

produced?

Consumption

What determines who gets the goods and services? Who gets

what? Who gets more? And who gets less?

Distribution

Distribution

• Distribution and consumption depends and how much people are willing and able to pay for goods and services.

• How much they are paid for willing to produce goods and services

• Wealthier people have more goods and services distributed to them.

What is the world’s most expensive

spice?

SaffronSaffron

Page 93

Where in the world are the

crocus flowers picked to make

saffron?

Kashmir region of Kashmir region of IndiaIndia

Page 93

How many crocus flowers are needed to make just one

ounce of saffron?

4,700 flowers4,700 flowersSaffron is made from Saffron is made from

three tiny orange stalks three tiny orange stalks inside each flower that inside each flower that

is then dried.is then dried.

Page 93

Crocus Flower

People picking Crocus flowers for Saffron spice

Individual Crocus thread

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Saffron Spice

Video: Understanding Understanding Economics: Scarcity and ChoiceEconomics: Scarcity and Choice

What 2 Watch 4

1. What occurs when our wants are greater than our ability to satisfy these wants?

(2:43)

What occurs when our wants are greater than our ability to satisfy

these wants?

Scarcity

Scarcity

• Scarcity forces us to makes choices

• Choice involves giving up other alternatives

• What choices best satisfy your wants