Unit 1 Economics

Audio Transcript Auto-generated

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  all right.

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  Good afternoon.

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  Students were going to pick up where we left off

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  yesterday in our notes, and I just want to do

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  a quick review.

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  Um, remember the differences in needs and wants once our,

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  um, things you would like to have needs or things

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  that are necessary for survival.

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  And there are only three things that are necessary for

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  survival. Food, shelter, clothing.

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  If you want to throw in water with food, that

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  is fine.

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  And remember, there are three questions.

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  Three questions that producers must ask, what to produce, how

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  to produce and when to produce.

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  Um, so the three choices that producers make okay.

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  Now, a lot of those choices off what producers make.

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  So here your three questions what to produce, how to

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  produce and for whom to produce.

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  And a lot of those choices that producers make our

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  our, uh, dependent upon GDP.

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  GDP stands for gross domestic product.

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  Okay, So gross domestic product is the monetary value of

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  all final goods service's and structure structures produced within a

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  country's border in a 12 month period.

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  So everything that is produced in the United States is

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  considered a part of its GDP.

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  So that's all the shoes, all the phones, all the

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  computers, all the Internet products, everything that is produced in

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  America's borders.

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  Okay, so even if the company is owned, um, and

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  based in America, if it doesn't produce it here, it

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  doesn't count.

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  Okay, GDP only count what's actually physically produced on American

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  soil, and that's very important.

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  So in our country, we're producing anywhere between 18 2

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  $19 trillion worth of product every single year.

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  Okay, now, that doesn't mean that we spend that or

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  our government has that much money.

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  It just means that's what everybody put together is making

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  in America every single year.

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  Okay, economics analyzes economic activity, explains economic activity and predicts

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  future economic trends.

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  Okay, so when you think about, um, when you're watching

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  TV and they have a leading economists, come on.

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  They're talking about unemployment rates.

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  They're talking about, um, how how well the housing market

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  is doing.

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  They're talking about stock options and where the stock market

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  ended for the day, up or down.

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  Okay, because those things predict future economic trends, okay, and

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  you have trade offs, tradeoffs, all alternatives that must be

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  given up when one choices made rather than another.

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  So, for example, if you're going to decide to buy

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  a Lamborghini, as one of my students said earlier, if

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  you wanna buy a Lamborghini, um, and you look at

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  how much money you have in the bank and that

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  Lamborghini is going to take the majority of your money

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  in that account, you know, there's a tradeoff.

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  The tradeoff for the Lamborghini is the money in your

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  account. You're gonna give all that money up.

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  And if you give up all that money to buy

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  that Lamborghini, then what are some other trade offs?

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  Well, you may have toe work harder or, you know,

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  you may have to buy a smaller houses, as somebody

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  said earlier.

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  So those tradeoffs, that's the alternative, that is, that must

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  be given up when one choices made rather than another

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  choice. Okay, opportunity costs opportunity, cause it's kind of like

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  the good stuff, right?

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  So opportunity cost is the cost of the next best

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  alternative. Use of money, time or resource is when one

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  choices made rather than another.

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  So if I decide all right, the trade off of

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  that Lamborghini buying that Lamborghini is too expensive.

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  So now I.

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  Instead, I'm going to buy a Chevy Camaro.

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  I still have a pretty hot sports car.

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  I still get to travel at a fast way to

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  spate. Rate of speed, fast rate of speed if I

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  decide to, um, it still looks good, but I'm not

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  spending all my money.

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  And I don't have to work more hours to pay

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  for it.

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  And I don't have to sell my house and buy

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  a smaller one.

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  So therefore, the opportunity cost of replacing.

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  I'm still getting a car, but I'm getting I'm still

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  getting sports car, but I'm going to not get the

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  most expensive sports car.

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  Lamborghini. I'm now going to get the Chevy Camaro.

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  Okay. Consumer rights, consumer rights, the right to safety, The

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  right to be informed, the right to choose the right

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  to be heard and the right to redress.

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  Okay, So, listen, when you buy a product when you

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  buy that Lamborghini, you have a right to safety.

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  If I sell you a Lamborghini and I know the

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  brakes were faulty or not working, right, I have violated

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  your consumer rights and you have a right to redress

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  that. Okay?

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  You have a right to counter that because every product

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  that I sell you should be safe.

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  Okay? You also have a right to be informed if

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  you go out and buy a Tesla and I don't

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  tell you that it's all electric and you go to

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  put gas in it because it's slowing down.

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  And you're like, Well, where's gas then?

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  All of a sudden, Now you're not informed because I

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  didn't tell you what was electric car with no gas

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  tank, and that you have to charge it at night

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  in your garage.

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  So you have a right to be informed about a

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  product that you are buying.

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  You also write to show it to choose.

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  You can't walk into my Lamborghini dealership.

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  And I say, this is the Onley Lamborghini you can

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  buy, right?

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  I can't do that.

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  If I have six Lamborghinis there, you have a right

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  to choose the Lamborghini you want.

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  You also have a right to be heard.

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  So if you're sitting in a restaurant and you find

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  here in your food right, you call the manager over.

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  The managers should listen to you, and the managers should

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  redress your concerns.

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  Hey, you found here in your food I'm so sorry.

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  Let me get you a new one.

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  Or let me take you.

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  Take that off your bill.

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  That's your right to redress.

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  All right, Now, you as a consumer, have some responsibilities

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  to. So if I as if as a consumer, if

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  you make a complaint, you have to include all the

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  details you have to recall include the receipts.

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  If you have any, you have to report the problem

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  immediately. You can't take a salad from my restaurant, take

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  you home, leaving in refrigerated for a couple of days

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  and then call me and be like that.

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  Salad is no good or that salad has a hearing

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  because that was two days ago.

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  Okay, so you can't wait.

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  You have to report the problem as soon as you

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  realize there is a problem.

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  Okay? It's like you can't leave a gallon of milk

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  in the refrigerator for 10 days, Didn't go back to

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  the store and be like, Hey, this count of milk

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  is no good.

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  So if you have a problem, you contact the manufacturer

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  by email by mail and you keep a copy of

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  that contact.

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  Okay? Be calm at no time when you are asking

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  for a redress or you're asking for something to be

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  done. Do you ever have the right to curse, use

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  profanity or threaten people?

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  You just don't.

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  You have to keep your cool.

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  You have to keep an accurate record of your efforts

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  to get the problem solved.

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  And then if the problem is not solved, you make

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  him go to small claims court court or go through

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  arbitration or any of those things to get your, uh,

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  your matter taken care off.

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  All right.

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  Well, economic growth economic growth is an increase in nations.

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  Total output of goods and service is over time.

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  Okay, there are risk and sacrifices when it comes to

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  making products.

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  Okay, um, risk and sacrifice.

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  Well, before you take on the risk, you want to

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  make sure you check out the environment in which you

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  want to produce a process.

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  You know, if you're living in the U.

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  S, and you wanna build, um, picnic tables, but you

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  want, But you live in Arizona, where there is no

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  trees and you live in the desert.

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  It might not be a good idea to produce those

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  tables there, because the cost to get the wood there,

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  Um, is gonna be a lot more, because in the

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  middle of the desert, you're putting up a wood factory

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  or would picnic table building company in the middle of

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  Arizona. That's not a risk that you may want to

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  take, because it may not be worth it.

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  Not very many people in the middle of Arizona with

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  no trees.

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  They're gonna sit under a picnic tape.

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  They're not, um, so risk and sacrifices by examining the

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  risk and the sacrifices, you're gonna limit current consumption.

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  Okay. Also, you wanna look at investing in new physical

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  capital or human resource is and how that can increase

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  productivity. What is productivity?

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  Productivity is the measure of the amount of output.

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  All right, so the risk it's too great to build

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  picnic tables in the middle of Arizona and the desert

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  to sell them because people are not sitting underneath the

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  tree at a picnic under a picnic table.

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  All right, so you've learned that.

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  So that limits the current consumption that limits you going

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  out and starting that business here.

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  All right, productivity.

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  Everyone benefits when scarce resource is are used efficiently.

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  All right, again, back to the picnic tables in the

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  middle of the desert.

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  You don't want to build picnic tables in the middle

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  of a desert.

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  That is not a good use of your resource.

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  Is productivity increases when Mork can produce with same amount

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  of resource is all right.

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  So you're increasing productivity.

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  Can I produce more watches?

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  Um, would 10 people, um, and increase the productivity?

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  Well, how can I get that done?

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  I don't want to hire 15 people to produce, um,

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  100 watches.

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  I want 10 people to produce those 100 watches.

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  All right, so how can I increase the productivity of

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  these 10 people?

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  Well, you may wanna not have all the 10 people

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  waiting while one person does the part.

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  You may wanna have, ah, situation where one person is

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  making the watchband.

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  Another person is putting together the watch face.

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  Another person is I'm putting in the battery.

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  So that is going down an assembly line and that

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  we're standing around waiting for somebody to do something.

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  That increase increases productivity, human capital.

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  That's the sum of people.

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  Skills, abilities, health, knowledge and motivation.

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  Human capital.

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  Okay. Businesses and individuals invest in human.

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  I can get a great worker.

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  I am going to try to make sure I do

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  that. All right, All right.

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  So those your notes for today, um, let me know

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  if you have any questions.

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  Thank you.

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  Bye bye.