first definitions sfls

First Definitions

What Economics isEconomics is a social science, attempting to study people, their behavior, and the choices that they make.

Textbook Definition:Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political realities of the society.

Mr. H’s Definition:

1.) What to produce.2.) How much to produce.3.) How to produce it.4.) Who to produce it for.


So what do we produce?


Everything!

Example - What do we produce?

China’s imports a lot of mineral fuel (oil), organic chemicals, iron and steel, ores, copper, cotton, and wood, cars, paper, medical instruments, plastics, machinery, electrical machinery, aircraft, cotton, food stuffs.

USA imports a lot of office equipment, telecommunication equipment, clothes, furniture, shoes, cars, purses, iron, steel, paper products, toys, building supplies, clocks, watches, chemicals, and a bunch of random crap that breaks really easy.

We classify (分类 ) what we make into different categories (类别 )

(4 main categories)1.) Consumption goods and services

2.) Capital goods

3.) Government goods and services

4.) Export goods and services

1.) Consumption goods and services

Things We Produce:– stuff bought by individuals and used to provide personal enjoyment and help make your life better.

Most things you think about buying in stores or restaurants

or online to use for yourself.


Things We Produce:

2.) Capital goods

– goods bought by business to increase their productive resources.

Things used to make other things

Some are better then others though

It’s not the things inside but the machine itself.

And it’s typically used by businesses.


Things We Produce:

2.) Capital goods


– stuff bought by governments.

Governments obviously buy things that we

normal people don’t.

Or it’s services they provide for us


Things We Produce:

2.) Capital goods


4.) Export goods and services

– stuff produced in one country and sold in other countries.

Not everything made in a country is used by the people in that country, so this sometimes

is a different item to discuss.


So how do we produce?


How We Produce:We use Factors of Production to make things.

The things that we use to make other things are broken into 4 main categories too…

1.) Land2.) Labor

4.) Entrepreneurship3.) Capital

How We Produce:

1.) Land – natural resources from the earth.

Factors of Production

So taking land like this…

And using it and making it into this.

How We Produce:

1.) Land

2.) Labor – Work time and effort used to produce stuff.


Work, work work….

How We Produce:

1.) Land

2.) Labor

3.) Capital – tools, instruments, machines, buildings, anything that is now used to produce goods and services.


Machines…

Even buildings can be capital.

How We Produce:

1.) Land2.) Labor – Work time and effort used to produce

stuff.

3.) Capital – tools, instruments, machines, buildings, anything that is now used to produce goods and services.

Human Capital

– knowledge and skills of people have and gain in making stuff.


Go to school wearing this stupid uniform…

So you don’t end up wearing a uniform like

this to work.

Factors of ProductionHow We Produce:

1.) Land2.) Labor

3.) Capital

4.) Entrepreneurship

– the risk takers, business owners and people that take land, labor, and capital to produce things.


So for whom do we produce?


We make things for those that can buy things:

That means people have to get money somehow and there are different ways to do this

We break this up into 4 (5) different categories as well so we can use them in equations later too

1.) Rent

3.) Interest 利息2.) Wages

*5.) Government 4.) Profit (or loss)

For Whom do we Produce:

1.) Rent – income paid for the use of land.

Rent can be from a unit…

Or actual land.

1.) Rent

2.) Wages – income paid for the services of labor.


The workers get paid a wage.

Some more then others and differently from others, but for now it’s all just wages.

1.) Rent

2.) Wages

3.) Interest 利息 – income paid for the use of capital.


1.) Rent

2.) Wages3.) Interest 利息

4.) Profit (or loss)

– income earned by an entrepreneur for running a business.


1.) Rent 2.) Wages3.) Interest 利息4.) Profit (or loss)

*5.) Government

– public goods and other goods and services used primarily by governments.


So to summarize…


Vocabulary to use:Mr. H’s Definition:




Vocabulary to use:

1.) Consumption goods and services2.) Capital goods3.) Government goods and services4.) Export goods and services



Vocabulary to use:Vocabulary to use:

2.) Labor3.) Capital

1.) Land

4.) Entrepreneurship



Vocabulary to use:

1.) Rent

3.) Interest 利息2.) Wages

*5.) Government 4.) Profit (or loss)

The End.Thank you.

first definitions sfls

Education