ECONomics powerpointnvhnvghnvvgg.pptx.pdf

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1. ECONOMICS

2. What is Economics?
•Economics is the study of how people make choices under scarcity.
•It explores how resources are allocated to satisfy human wants and
needs.
•Divided into Microeconomics and Macroeconomics.

3. Why Study Economics?
•Helps us understand real-world issues (e.g., inflation, unemployment, poverty).

•Improves decision-making for individuals, businesses, and governments.

•Prepares you for careers in business, government, and finance.

4. Basic Economic Concepts
•Scarcity – Limited resources vs. unlimited wants

•Opportunity Cost – The next best alternative foregone

•Trade-offs – Choices involve giving up something

•Incentives – Motivators for making decisions

5. The Economic Problem
•What to produce?
•How to produce?
•For whom to produce?
•These fundamental questions arise due to scarcity.

6. Microeconomics vs. Macroeconomics

Microeconomics vs. Macroeconomics
•Individual behaviour
•firms, households, markets
•Price of a product
•National and global economy
•Inflation, unemployment, GDP
•Overall price levels

7. Factors of Production
•Land – Natural resources
•Labor – Human effort and skills
•Capital – Tools, machinery, buildings
•Entrepreneurship – Innovation and risk-taking

8. HOW ECONOMICS AFFECTS US PERSONALLY
•1. Spending Decisions
•Prices influence what you buy and how much.
•You make choices based on your budget, considering opportunity
costs (e.g., buying coffee vs. saving for a phone).
•2. Education and Career Choices
•Economics helps you decide whether investing in education is worth
the cost vs. future income.
•Job demand, wages, and market trends are all influenced by
economic forces.

9. •3. Cost of Living
•Things like inflation affect how far your money goes.
•Rent, food, and gas prices all change based on supply and demand,
which are core economic concepts.
•4. Employment Opportunities
•The health of the economy determines how easy it is to find a job.
•In a recession, jobs may be scarce. In a boom, businesses hire more.

10. •5. Government Policies
•Taxes, student loans, healthcare, and subsidies affect your personal
finances.
•Economic policy decisions shape things like minimum wage and
interest rates on savings or loans.
•6. Everyday Choices
•Deciding between working more hours or having more free time is an
economic trade-off.
•Choosing between different products or services involves thinking like
an economist.

11. •7. Global Events
•World events like oil price shocks, wars, or pandemics affect local
prices, job stability, and access to goods.
•You are connected to the global economy more than ever before.

12. Types of Economic Systems
•Traditional Economy – Based on customs
•Command Economy – Government makes decisions
•Market Economy – Decisions made by individuals
•Mixed Economy – Combination of all above
•Economics is about choices in a world of scarcity.
•It is divided into micro and macro fields.
•Understanding economics helps explain and solve real-world problems.