Scarcity and Wants/Needs

1. Scarcity and Wants/Needs Jack Wheatley

2. Scarcity • The fundamental problem of having seemingly unlimited human wants and needs in a world of limited resources • Society does not have enough resources to fulfill all human wants and needs • E.g. Helium • Often used as cooling agent for nuclear reactors • Only about 30 years of Helium left for use on Earth • Finite element; we will eventually run out • Need to find alternate resources for common wants and needs • Most things are finite; we need alternate resources for every time resources come to and end, or an unlimited resource

3. Wants vs. Needs • Something that is necessary for survival • Food, shelter, water • Limited resources (needs) • Something that is desired • iPhone, XBOX, Garrett’s cow costume • Unlimited wants • Must distinguish wants from needs • What is necessary in today’s society? • Represent overall concept of demand

4. Visual – Scarcity

5. Visual – Wants and Needs

6. Connection – Scarcity • Earlier this month, Obamacarewebsite crashed • Though the reason was proved not to be by traffic on the website, this is a vague example of scarcity – when a website crashes • So many people want to use a product (website), but there are limited resources (workers keeping it updated), so it crashes. • Another example: Everyone wants a new pair of shoes, but there are only limited resources to make the shoes. When they run out of these resources, they can’t make the shoes, and not everyone can have them

7. Connection – Wants vs. Needs • Your annoying group of friends is complaining at a party that the pizza is from Domino’s and not from Pizza Hut • Pizza Hut pizza: WANT • Pizza (food): NEED • You need the food in order to live/survive. Pizza from Pizza Hut is just a privilege. • Conclusion: Tell your friends to stop complaining about the origin of the pizza, and just be grateful to have the pizza.

8. GDP By: Samson Tessema

9. Definition • GDP(Gross Domestic Product) – the market value of all officially recognized final goods and services produced within a country in a given period of time

10. Explain Term/Concept • It is used to show how well a country’s economy is doing • The total number of goods and services produced over a specific period of time

11. ‘Murica Visual

12. Connection GDP=AEW AEW=Average Economic Wealth

13. Stock Market/Dow Jones industrial average Kj McBride

14. Definitions Stock market – a stock exchange Dow Jones Industrial average – an indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange

15. Stock market • When a company is in need of money they can sell part ownership in the company with a claim • As the company’s funds increase the claim you have with the company increases too • If the company’s funds decrease so does the claim

16. Dow Jones Industrial Average • The overall indicator of the condition of the stock market • It is based on 30 stocks selected by editors of the wall street journal • They are the 30 most actively traded stocks on the market

17. Visual

18. connection We are using the stock market in class It Is Fun

19. Microeconomics Macroeconomics the branch of economics dealing with the broad and general aspects of an economy, as the relationship between the income and investments of a country as a whole • the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm

20. Microeconomics • analysis of the decisions made by individuals and groups, the factors that affect those decisions, and how those decisions effect others

21. Macroeconomics • examines the economy as a whole and answers questions such as 'What causes the economy to grow over time?

23. How can you remember? • Micro means small and it is the analysis of individuals and small groups • Macro means large and it examines the whole economy

24. Corporation Company or group of people authorized to act as a single entity (legally a person) and recognized as such by law

25. What is a Corporation? • Created by a group of shareholders who own corporation • Shareholders represented by holding of common stock. • Shareholders elect a board of directors (one vote per share) who appoint and oversee management of the corporation. • Majority of corporations are setup with the goal of providing a return for its shareholders • Some are nonprofit • When you purchase stock you are becoming part owner in a corporation.

27. Connection

28. Common Stock Shares entitling their holder to dividends that vary in amount and may even be missed depending on the company’s future

29. What is Common Stock?

31. Connection

32. Preferred Stock Stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common stock dividends

33. What is Preferred Stock? • Class of ownership with higher claim on earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common • Shares usually do not have voting rights. • Details of structure specific to individual corporations • Also known as "preferred shares". • Negatives: no voting, less appreciation

35. Connection Wouldn’t you much rather prefer having money first rather than later?

36. JOSH SHIKOFF Free Market Economy

37. Definition • A free market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system (economic system where prices are set by the interchange of supply and demand)

38. Simply… • That means people can freely buy and trade goods and services. The price of each good or service is determined not by the government but by demand. Demand is a measure of how many people want to buy a particular good or service.

39. Visual

40. Visual

41. Real Life Example • Ebay is an example of a Free Market Economy because the people control the market by making their own prices. The price posted is dependent on the supply and demand of the product. For example, if someone posts a Honus Wagner card it will sell for more since not many people are selling them and there is a high demand. One the other hand, a normal Ryan Howard card will have less demand therefore it will have a greater supply that sells for cheaper.

42. Factors of Production By: Garrett Cantor

44. Definition • The inputs that are used in production of goods or services in the attempt to make a profit – Investopedia • Inputs are everything used from beginning of production to end

45. Examples • Land – Naturally occurring goods • Labor – Effort put into production (mostly human) (Intellectual, social) • Capital – Human made goods used in production • Subject of Labor – objects transformed by labor

46. Visual

47. Connection • Factor x Factor = Product

48. Capitalism Capitalism is an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state. By: A.J. Drobot

49. Explaining Capitalism in Understandable Terms • Economic system based on private ownership on the means of production and capital goods. (Durable good used in production) • The parties usually determine the prices at which assets, goods, and services are exchanged. • There are three types of capitalism; Laissez-faire Capitalism, Welfare Capitalism, and State Capitalism. • Capitalism is defined as a social and economic system in which capital assets are mainly owned and controlled by private persons. • Labor is purchased for money wages, and the capital gains accrue to private owners, and the price mechanism is utilized to allocate capital goods between uses.