Economics1

Economics1

• 1.
  EconomicsIs the studyof how people choose to use scarce resources to satisfy their needs and wantsSeveral QuestionsWhat are goods and servicesWhat are economic resourcesWhy must we make economic choicesWhat is the cost of every choiceWhat do economist do
• 2.
  MacroeconomicsSome problems involvethe impact of changes on the economy as a whole rather than on an individual part. For example, what will be the effect of an increase in federal spending on consumer spending, and the federal budget?MicroeconomicsSome problems involve the effects of economic forces upon individual parts of the economy, such as business firms, households, and workers. For example, what will to a firms sales if they increase prices
• 3.
  Goods and ServicesGoodsAreproducts that people make or grow. There are many kinds of goods that people want or need. Examples of GoodsFood, drink, clothes, houses, bikes, cars, and gasoline
• 4.
  ServicesServicesServices are jobsthat people do to help other people. A doctor does a service by helping people to get well. A teacher does a service by helping students to learnWe also define goods and services into whether they are necessities or luxury items. Necessities are items we must have. Luxury items are things that we can live without
• 5.
  ServicesToday we talkabout the services industries. As manufacturing has decreased services have come to play a greater part in the U.S. economy. We have professional services, like accountants, Lawyers, any type of doctor. These services can be extremely expensive. Lawyers often charge $300 an hour. Normally, these services are licensed to protect the publicPeople like car mechanics and plumbers(trades) are considered to be skilled services, we call them skilled trades. They can charge from $70 to $100 an hour.
• 6.
  ServicesMany service jobsare considered to be unskilled and semi-skilled. Many service jobs are retail sales jobs. Often they are done by younger unskilled workers. These jobs tend to be the lowest paying jobs in the economy. Unfortunately, they are also the jobs the most common jobs being created in today’s economy.
• 7.
  GoodsDurable GoodsIs agood that does not quickly wear out. One that yields satisfaction or utility over time rather than being consumed quickly. Examples , include cars, household goods, home appliances Non-Durable GoodsThey may be defined either as goods that are immediately consumed, or that have a lifespan of less than 3 years. Examples, cosmetics, food, fuel, office supplies, paper, clothing
• 8.
  Free GoodsFree goodsare goods that are readily available and in sufficient quantity to satisfy all wants. That are not that many free goods, for example: air, ocean water, and sand.InstructionsMake a list of goods and service that you or your family consume. Work in groups of three, and place all your names on it.