tailieunhanh - Lecture Introduction to economics: Social issues and economic thinking: Chapter 1 - Wendy A. Stock

Chapter 1 - An introduction to the economic way of thinking. After completing this unit, you should be able to: Define economics, explain how scarce resources influence choices, describe the influence of benefits and costs on deciding among alternatives, identify the decision rules individuals and firms use to make choices, | Introduction to Economics: Social Issues and Economic Thinking Wendy A. Stock PowerPoint Prepared by Z. Pan Chapter 1 An Introduction to the Economic Way of Thinking Copyright © 2013 John Wiley & Sons, Inc. / Photo Credit: © Shuan Lowe/iStockphoto 1 Define economics Explain how scarce resources influence choices Describe the influence of benefits and costs on deciding among alternatives Identify the decision rules individuals and firms use to make choices Explain why decisions are made “at the margin” Assess the general conditions that generate maximum utility or profits Copyright © 2013 John Wiley & Sons, Inc. 2 After studying this chapter, you should be able to: 2 Economics is the study of choices. Economics is a tool or way of looking at the world Economics help us to understand all kinds of choices Copyright © 2013 John Wiley & Sons, Inc. 3 Definition of economics 3 Macroeconomics deals with choices that societies make. Microeconomics deals with the choices individuals, households, and businesses make. Copyright © 2013 John Wiley & Sons, Inc. 4 Microeconomics and Macroeconomics 4 Improve decision-making skills Improve critical thinking skills Develop analytical and quantitative skills Understand many current issues Approach controversial issues with objectivity and clarity Prepare for graduate school in many fields Better job opportunities Copyright © 2013 John Wiley & Sons, Inc. 5 Why Study Economics? 5 Scarcity occurs when we have fewer resources than we have uses for those resources. Scarcity implies choices Copyright © 2013 John Wiley & Sons, Inc. 6 Scarcity 6 Labor – laborers combine time and energy to produce goods or services Land – including natural resources, water, and clean air Capital - long-lasting tools or skills used in producing goods and services Copyright © 2013 John Wiley & Sons, Inc. 7 Three basic economic resources 7 Decision makers make choices by comparing benefits and costs. Benefit of a choice is what you gain when you make the choice. | Introduction to Economics: Social Issues and Economic Thinking Wendy A. Stock PowerPoint Prepared by Z. Pan Chapter 1 An Introduction to the Economic Way of Thinking Copyright © 2013 John Wiley & Sons, Inc. / Photo Credit: © Shuan Lowe/iStockphoto 1 Define economics Explain how scarce resources influence choices Describe the influence of benefits and costs on deciding among alternatives Identify the decision rules individuals and firms use to make choices Explain why decisions are made “at the margin” Assess the general conditions that generate maximum utility or profits Copyright © 2013 John Wiley & Sons, Inc. 2 After studying this chapter, you should be able to: 2 Economics is the study of choices. Economics is a tool or way of looking at the world Economics help us to understand all kinds of choices Copyright © 2013 John Wiley & Sons, Inc. 3 Definition of economics 3 Macroeconomics deals with choices that societies make. Microeconomics deals with the choices individuals, .