ACTIVITY:On a 3x5 card write YOUR definition of economics."Economics is . . . . "
DEFINITIONS:MARK'S DEFINITION:
TEXTBOOK'S DEFINITION : Economics is the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants
"efficient" ?
"scarce" ?
GOAL: Maximize Satisfaction !
OUR DEFINITION: Economics is the study of how we choose to use limited resources to obtain the maximum satisfaction of unlimited human wants
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ACTIVITY:On a 3x5 card write YOUR definition of efficiency."Efficiency is . . . . "
IS EFFICIENCY:
- economic growth ?
- using as few resources as possible when producing a product ?
- using resources to produce more CDs that people want and fewer cassette tapes that they don't want ?
- using all of our resources (full employment) ?
- a fair disrtibution of products ?
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GOAL: to maximize society's satisfactionThe 5 Es are five ways to acieve this goal:
- Economic growth
- Productive Efficiency:
using as few resources as possible when producing a product
- Allocative Efficiency:
using resources to produce more CDs that people want and fewer cassette tapes that they don't want
- Full Employment:
using all of our resources
- Equity:
a fair disrtibution of products
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Natural disasters and "price-gouging"
- http://netra.sptimes.com/Weather/92698/Gouging_complaints__r.html .-.
- Is it GOOD for the citizens of Florida ifthe price of plywwood increases from $20 to $60 after a hurricane?
- Remember, the goal is to maximize society's satisfaction
Coca-Cola Lays off 6000
- http://cgi.cnnfn.com/output/pfv/2000/01/26/worldbiz/coke/ .-.
- Are these lay offs GOOD for society?
- Remember, the goal is to maximize society's satisfaction
- Not all Lay-Offs are good for society
Are gasoline prices TOO LOW?
- Remember the goal is to achieve the 5 Es in order to maximize society's satisfaction
- http://www.energy.ca.gov/fuels/gasoline/world_gasoline_prices.html
- Why?
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