113(19) Lecture 1SK (1).pptx - Lecture 1 July 9 Welcome to BSNS 113 Economic Principles and Policy 1 Teaching staf Lecturer and Course Coordinator

113(19) Lecture 1SK (1).pptx - Lecture 1 July 9 Welcome to...

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Lecture 1, July 9 Welcome to BSNS 113 Economic Principles and Policy 1
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Teaching staf Lecturer and Course Coordinator Stephen Knowles 5.14 Otago Business School [email protected] Office Hours: Monday 11-12 Wednesday 11-12 Thursday 1:30-2:30 2
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Lecturer, Senior Tutor and Course Administrator Terry Kerr 5.16 Otago Business School [email protected] Office Hours: TBA ALL administrative queries should be directed to Terry 3
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Today What is economics about? And, work through the course guide But do so as an exercise in basic economics 4
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To start: what is economics? Is it mainly about money? In Economics, money is seen as a useful tool, (e.g. it avoids having to barter) This is great, but of most interest to us is the ‘real’ stuf – goods and services – that money can and cannot buy Economics is about much more than money ! 5
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“Economy” comes from a Greek word meaning ‘one who manages a household’ What decisions does a household manager have to make? In summary, the household manager has to allocate scarce resources among members, taking into account each person’s abilities, eforts and desires Society as a whole faces similar choices, but on a much bigger scale 6
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The three economic questions (examples of big choices): (1) What goods and services should be produced (and in what quantity)? (2) How should they be produced (including who does what)? (3) Who gets to consume these goods? Answering these questions is complicated because of SCARCITY 7
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A key concept in economics: Scarcity In economics, a good or service is considered ‘ scarce when there’s not enough of it to satisfy everyone at zero price (i.e., when it’s available for free) Which of the following are scarce? Cars All Black tests at Forsyth Barr Stadium Places at Otago University Water 8
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A fundamental starting point in economics: Human needs and wants are practically unlimited whereas the resources needed to satisfy them are limited 9
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The implication of scarcity… is the need to make tradeofs (choices) [Lesson 1 from chapter 1 of text] An example of a scarce resource is your time
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