WHAT IS ECONOMICS ? Lesson 1 1. THE FIRST TWO TERMS… ECONOMICS = ECONOMIE (het vak, de wetenschap)...
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WHAT IS ECONOMICS ? Lesson 1 1
Transcript of WHAT IS ECONOMICS ? Lesson 1 1. THE FIRST TWO TERMS… ECONOMICS = ECONOMIE (het vak, de wetenschap)...
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WHAT IS ECONOMICS ?
Lesson 1
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THE FIRST TWO TERMS…
ECONOMICS = ECONOMIE (het vak, de wetenschap)
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THE FIRST TWO TERMS…
ECONOMY = ECONOMIE (een regio, een land of groep landen)
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CAN YOU MATCH THE 10 QUESTIONS WITHTHE RIGHT ANSWERS?
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1.Is economics a science?
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2. A can of Red Bull is a ……….and a trip to Turkey is a ……….
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3. What are the factors of production?
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??
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4. People selling something are sellers or ……….
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5. People buying something are buyers or ……….
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6. Ebay is an example of a ………. where people buy and sell
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7. People want to do and have all kinds of things. We call these ………. and ……….
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8. We all want to do and have more than we can afford. This situation is called ……….
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9. When you only have €50 and you buy new shoes, you cannot buy the concert ticket you also want. This effect is called ………..
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10. So we have to make choices. The point is to make the best choice This choice is called ……….
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1.Is economics a science?
YES.
Economics is a social science. It is the study of people’s behaviour.
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2. A can of Red Bull is a ……….and a trip to Turkey is a ……….
People sell and buy goods and services.
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3. What are the factors of production?
Nature, labor, capital and entrepreneurship are the basic elements to produce goods and services.
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4. People selling something are sellers or ……….
Suppliers sell goods and services.
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5. People buying something are buyers or ……….
Consumers buy goods and services.
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6. Ebay is an example of a ………. where people buy and sell
Suppliers and consumers meet and do business in a market.
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7. People want to do and have all kinds of things. We call these ………. and ……….
There are so many different needs and wants people want to satisfy.
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8. We all want to do and have more than we can afford. This situation is called ……….
ScarcityWe can’t satisfy all our needs and wants: our resources are scarce.
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9. When you only have €50 and you buy new shoes, you cannot buy the concert ticket you also want. This effect is called ………..
Opportunity cost= what you give up.
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10. So we have to make a choice all the time. This is called ……….
Trade-offThe point is to make the best choices .
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WHAT IS ECONOMICS ?
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Definition 1:
Economics is the study of people producing, selling and buying goods and services they want.
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Definition 2:
Economics is the study of people making trade-offs because of scarcity.
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Definitions:
Examples (supplier):- what good or service will I produce? - how will I produce?- how can I make more money?
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Definitions:
Examples (consumer):- what will I buy?- how can I save more
money?- who sells the best good or
service?
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THE LAST TWO TERMS…
MACROECONOMICS =
de economische wetenschap op het niveau van de gehele economie
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THE LAST TWO TERMS…
MICROECONOMICS =
de economische wetenschap op het niveau van een individu of groep van personen
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SOME EXERCISES…
(see exercise sheet 1)
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WHAT DID YOU LEARN?
1) Can you enumerate the production factors?2) Can you define ‘economics’, ‘scarcity’, ‘opportunity cost’
and ‘trade-off’ in your own words?3) Can you give some examples of scarcity, opportunity cost
and trade-off that relate to your personal life?4) Can you apply scarcity, opportunity cost and trade-off to
the world of the suppliers?5) Can you value the importance of economics?
