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 THINKINGChapter 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/

Click to add text

Positive economics

Click to add text

Normative economics

THE 7 BASIC ECONOMIC PRINCIPLES

Group Activity

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