lectur5 - Introduction to Economics Economics is a Way of...

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Unformatted text preview: Introduction to Economics Economics is a Way of Thinking, a Thought Process You already know and use some of the economic principles we will discuss Your informal economic education began when your parents gave you your first dollar to spend You had to choose the combination of economic goods and services (commodities) to buy, that would give you the greatest satisfaction (utility) Common Knowledge in our Economic System: That all commodities have a price determined by a market (legal or illegal) Usually price is thought of as the monetary sacrifice that must be made to obtain a commodity The monetary price of a commodity may not be the true or total cost of obtaining the economic good or service Bag Lunch vs. Buying Lunch Living on Campus vs. Commuting Eating Out vs. Eating at Home Introduction to Economics Definition of economics : A social science concerned with the way an individual or society CHOOSES to employ limited resources having alternative uses to produce economic goods and services for present and future consumption. Let's take this definition apart and analyze it. Think of economics as being a core area, surrounded by outlying extensions into areas more usually associated with other disciplines. Core Area is Considered a SOCIAL SCIENCE Economics Livestock Mgmt. Landscape Tech. Turf Management Turf Management Because it Deals with Human Activity. Economics deals with a limited range of human activity characterized by RATIONAL BEHAVIOR, and the interaction of individuals upon one another through the mechanism known as a MARKET. Rational Behavior: An action well suited to achieve specific goals within the limitations and capacities of an individual. You learn from your mistakes, and do not repeat them. Limited Resources: Resources are also called " factors of production" or "inputs." LIMITED implies the concept of SCARCITY For all practical purposes, human wants may be regarded as limitless. Do we ever have enough goods and services? Scarcity...
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lectur5 - Introduction to Economics Economics is a Way of...

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