Econ ppt 1

IB Economics Introduction Section 1

The Discipline of Economics ,[object Object],[object Object],[object Object]

[object Object],[object Object],What is Economics?

Economics & the Scientific Method Keep it simple Ceteris Paribus (other things equal) Models are dynamic Refine theory

Micro and Macro There are many overlapping issues.

Key Economic Concepts ,[object Object],[object Object],[object Object],[object Object]

Scarcity Choices have to be made

Choices and Utility ,[object Object]

Marginal Utility ,[object Object]

Marginal Utility of Bungee Jumping Number of Jumps

Opportunity Cost ,[object Object]

Rationing Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Resources/Factors of Production

Market Economies In a market economy the forces of Demand and Supply determine resource allocation.

Command Economies In a command economy the the state determines resource allocation.

Mixed Economies In a mixed economy the forces of demand and supply and the state determine resource allocation.

Economic Growth and Economic Development

Sustainable Development The environment is preserved for future generations.

Production Possibility Frontier (Curve) ,[object Object],[object Object],[object Object],[object Object]

[object Object],A All resources are being used efficiently. The economy is allocating more resources to computers than mobile phones.

[object Object],B Resources are not being used efficiently.

[object Object],B Actual Economic Growth C

[object Object],C Not attainable given present Factors of Production

[object Object],E Shift of production from Computers to Mobile Phones D

[object Object],Shift of production to Public and Merit Goods e.g. hospital, school etc Y X

[object Object],Potential Growth achieved by changes in the quantity and/or quality of Factors of Production PPC1 PPC2

Suggested Activities ,[object Object],[object Object]

Assessment ,[object Object],[object Object]

Typical Questions ,[object Object],[object Object],[object Object],[object Object]

Typical Questions ,[object Object],[object Object],[object Object]

Diagrams ,[object Object],[object Object],[object Object],[object Object]

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