Economics By Paul Curcione
Jan 03, 2016
Definition of EconomicsThe study of how people and
societies choose to spend their money based on the amount of money they have available to spend.
TradeI’ll give you this; you give me
thatMy stuff for your stuff or for your
services or for your $$$
SpecializationYou are going to make one thing great,
instead of trying to make many things not so great.
SpecializationDifferences in the economies of
the 13 colonies (New England, Middle, Southern)
Geography affects decision on how to make $
SpecializationAllows me to make more stuff
which means more $$ for me. The more I can make, the more I can sell, right?
But, I also depend on other people making other stuff for me because I don’t make everything I need.
Voluntary ExchangeSimilar to trade. Two parties or
countries exchanging stuff for their mutual benefit
Supply and Demand PrincipleThe greater the DEMAND for some stuff,
the more money you can ask for it.
The less the SUPPLY available of stuff, the greater the price you can ask for that stuff.
I.E. – (then) – tobacco for cigarettes
I.E. – (now) – gasoline for cars
Personal BudgetIncome In vs. Expenses OutFixed vs. Variable expensesWants vs. NeedsImportance of saving $$Why budget (monitor) money?
Benefits and CostsWhat are the benefits and costs
of budgeting?What are the benefits and costs
of saving?What are the benefits and costs
of making purchases?