Introduction to Economics. Presentation by Remedios Llorente, 4º B CAL, EOI Sevilla.

1. What is economics?
The term economics, from the Greek,
“oikonomica”, means a science of
managing the house.

2. Why do we need to study
economics?
“Economics
studies how
people
make
decisions to
satisfy
needs and
wants”

3. Needs
Needs

4. Unlimited needs

5. Maslow's hierarchy of needs
Maslow uses the following terms: Physiological, Safety,
Belongingness and Love, Esteem, and Self-Actualization.
There is a need to describe the pattern of the human
motivation.

6. Limited resources

7. Scarcity of resources and need to
choose
Scarcity happens when
there are limited
quantities of resources to
meet unlimited need or
desires.

8. ECONOMICS
arises from the conflict between
Unlimited needs Scarcity of resources
generating
Choice
Scarcity implies
Which materializes in Opportunity cost
What will be
produced?
How will it be
produced?
For whom will it
be produced?
how a country Market Economy
answers these
questions depends on Economic Systems Command System
the type of economic
system they have Mixed Economy

9. Opportunity cost of our decisions
Opportunity cost is the
value of the best available
option for someone who
has chosen from among
several mutually exclusive
options.

10. ECONOMICS
arises from the conflict between
Unlimited needs Scarcity of resources
generating
Choice
Scarcity implies
Which materializes in Opportunity cost
What will be
produced?
How will it be
produced?
For whom will it
be produced?
how a country Market Economy
answers these
questions Economic Systems Command System
depends on the
type of economic Mixed Economy
system they have.

11. Economic agents
Economic agents
are the protagonists of
the economy, and
therefore they have to
choose.

12. Economic agents
Circular flow of
are interrelated by
income
Firms Govermment Households
Land
Productive Labor
need factors
Capital
For performing the
Incomes
Production results in
Costs

13. Circular flow of income