3E Economics par. 1.1

• Economie
• Middelbare school
• vwo
• Leerjaar 3

3E Economics

- Economics <-----> Business Economics

Both in 3E book, Profile choice

- Notebook ( A4 )

- Calculator

- Chromebook

- Work schedule ( Signing off )

Signing off

Week 37 and 38

Ask a question about a difficult assignment or show an assignment with clear explanations and/or calculations

Week 39, 40 and 41

Ask a question about a difficult assignment or show an assignment with clear explanations and/or calculations

Test scheduled in week 44

Economics

Economics

                                               Scarcity

Needs <---------------------------------------> Means

( unlimited )                                                                     ( limited)

                                              Choices

                                              Setting priorities  

Scarcity: not enough means are available to fullfill everyone's 

needs

           

Economics

The need for scarce goods is always greater than the means available.

The scarcer the item, the higer the price.

Economics

Free goods: no production factors are needed to produce the good, f.e. sunshine, rain

Scarce goods: production factors are needed to produce the good, f.e. bread, bicycles

So scarce is not the same as rare in economics.

Is the air we breath a free good?

Economics

Companies need production factors to produce goods

If they choose to use the production factors to produce product A, they can't produce product B.

The production factors are:

Labour, Capital, Nature and Entrepeneurship

Economics

Self-sufficiency: Making products yourself

Consume: buying goods ( tangible ) and services ( intangible ) to fullfill your needs

Capital

Labour

Nature

Entrepeneurship

a hammer

land

car mechanic

Elon Musk

Put the following items in order of the highets scarcity

a concert ticket for Lady Gaga in Amsterdam

a work of art by Banksy

Toilet paper

Toilet paper during corona

I: The fridge in your kitchen is a consumer good
II: The fridge in a restaurant is a consumer good

1. I and II are true
2. I is true, II is false
3. I is false, II is true
4. I and II are false

Do you feel you have a basic idea what economics is about?

1. Yes
2. Yes, a little
3. No, not really
4. No, not at all