1.2: Factors of Production
In economics we refer to the resources, items, and labor needed to create goods
(imagine a Snickers bar) and services (Snapchat) with a general term known as the
factors of production. The factors of production are split into fo
2.2: Utility, Marginal Utility, and Spending
the Marginal Dollar
Why do we make choices?
Economics is the science of choices. So why
choices? Because we have unlimited wants,
limited, amount of resources. This is called
the main driver of all things micro
1.3: Economic Systems
As we've learned already, scarcity is a major part of economics and it drives how we
make decisions. In order to determine how to use scarce resources, an economy has
to answer four questions; and how that economy answers those four
1.4: The Circular Flow Model
We have gone over the basics of how you make decisions, economic systems and the
factors of production. So, how is it all linked? In order to show this, we will be going
over our first model; the Circular Flow Model.
A Note Ab
1.1: Economic Thinking and Marginal
Economics is the study of how choices are made. Imagine the amount of waking hours
you have during the day. Now imagine the amount of things you have to accomplish
during the day. You have limited amount of res
2.3: The Production Possibilities Curve
The only resource you have at your disposal is your time. Normal humans need around 8 hours
of sleep, so that leave 16 hours left over for you to use. How to use this time?
Being a high school student is
2.4: Comparative Advantage and Trade
How many people here ate oatmeal this morning? Did you grow the oats yourself? Harvest
them? Roll them?
Very few people in a modern economy are able to produce every good they need for living. To
obtain more goods and