Unit 1 Economics

Audio Transcript Auto-generated

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  Hey, everybody.

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  I just wanted Thio get you the notes for the

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  people who were not able to get on today or

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  couldn't hear me.

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  So I'm gonna make you a short video on the

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  notes that we went over today.

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  Okay. Um, really quickly.

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  What is economics?

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  Okay, that's the first topic of today is what is

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  economics? What do we do when we study economics?

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  Economics is to social science, dealing with how people satisfy

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  seemingly unwanted and competing needs and wants with the careful

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  use of scarce resource is so, in essence, we will

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  never have enough off all the things that we want,

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  right we are.

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  We're going to always have to make choices between what

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  we have and what we want.

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  Needs are things that are very basic.

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  That's your food, your shelter and your clothing.

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  You've got to have that.

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  And that economics scarcity is the biggest problem, right?

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  The definition of scarcity is not having enough resource is

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  to produce all of the things that you want.

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  So how do you decide?

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  But first, you've got to decide what the need is

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  versus what I want is so I need is something

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  you have to have in order to survive.

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  Food, clothing and shelter are all the needs that you

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  as a human will have.

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  And for most of us, those those needs are definitely

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  met, right once.

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  That's everything else.

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  That's the things that we would like to have put

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  are not necessarily, um, necessary for survival.

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  So we want a car.

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  We want new clothes.

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  We have to have food, right?

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  See the difference.

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  Goods are useful but tangible items, right?

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  It's something you can touch.

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  It's your phone.

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  It's is your yeti cup that you drink out up.

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  It's the death that you sit in, and there are

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  several types of goods.

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  You have durable goods, durable goods.

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  Last 123 years.

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  You have nondurable goods that's less than three years, and

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  you have a consumer good.

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  That's anything that is intended for final used by individuals.

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  So and finally, you have capital goods, capital goods or

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  tools or goods, um, such as machinery or equipment that

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  is used by businesses to produce other products.

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  So when you think about the assembly line for car

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  right, that big machine that that picks up parts of

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  the car and place it somewhere.

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  That's a capital good the purveyor built.

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  Or that the parts ride on.

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  That's a capital good.

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  It zits, machinery, equipment, the autumn, the robots that go

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  in and put the intricate parts in a car that's

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  a capital.

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  Good. Okay, Now, service is service is our work that

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  is performed for someone else.

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  So as a teacher, I work in the service industry.

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  As a server, I work in the service industry.

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  If you back groceries, you work in the service industry

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  because you were performing goods for someone else.

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  There is goods, and service is have a value that

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  is a worth.

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  So the work that you perform is worth something.

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  Your car has a value.

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  Your home has a value utility.

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  His usefulness.

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  So you think about a utility vehicle or sports utility.

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  That usually means it's it's used for hauling.

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  Okay, Now, wealth is accumulation of products that are tangible,

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  scarce and have utility in our transform Herbal transferrable.

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  Excuse me, your transferrable.

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  So another concept that I want you to think about

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  is the fact that there is no such thing as

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  a free lunch.

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  Okay, So when somebody invites you to lunch, usually a

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  real estate agent.

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  They're not inviting you lunch because they like you.

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  They're inviting you to lunch because they want you to

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  use their service.

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  An insurance agent may invite you to lunch to use,

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  um, to get you to buy or use their service

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  is please understand this, right, that if they're inviting you

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  to lunch, they're looking for something in return.

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  That is why the saying goes, There's no such thing

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  as a free lunch.

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  Okay, you're going to hear me talk about that all

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  the time In E con, you don't get something for

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  free. So no matter how good the offer seems, if

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  it seems too good to be true, it usually it's

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  okay. There are certain questions that all of our societies

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  will face and they have toe.

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  This is the basic basic concepts, or these are the

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  basic concepts of off economics.

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  What are we going to produce?

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  How are we going to produce it?

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  And for whom are we going to produce thes things?

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  Okay, what to produce, how to produce and for whom

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  to produce.

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  Once consumers or entrepreneurs or business people decide what they're

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  going to produce for whom they're gonna produce.

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  They have to decide, uh, what they're going to make.

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  Okay, So there are choices that producers make.

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  GDP is the monetary value of all final goods service's

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  and structures produced within the country's borders in a 12

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  month period.

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  That's GDP.

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  So everything that the United States produces within its borders

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  comes up to add up to their GDP.

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  Okay, so our GDP is around 18 $19 trillion.

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  That's all the things that we produce in a year

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  in America.

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  Uh, economics analyzes economic activity, so they explain, um, they

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  analyze economic activity, they explain economic activity, and it predicts

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  future economic trends.

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  Okay, now there are some tradeoffs in that trade offs,

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  all the all turns that must be given up when

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  you when you make one choice over another choice.

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  So am I going to do my homework or am

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  I going to go to my my after school job?

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  Okay. And if I go to my after school job

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  and don't do my homework and prepare for class the

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  trade off, maybe I might not make the grades that

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  I want to make have