Introduction to Economics and Economic Systems
“The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.” -Thomas Sowell
1) How does economics affect everyone?
2) Who benefits from the free market economy?
3) Why can't you always get what you want?
4) What role does the opportunity cost play in our everyday decisions and how does this affect the PPC?
5) How do societies decide who gets what?
6) What role do governments play in different economic systems?
Students will be able to explain...
1) the concepts of scarcity and opportunity cost.
2) the distinctions between the free enterprise, socialist and communist economic systems.
3) the circular flow model and its impact on the free enterprise system and world trade.
4) the impact of government on the free enterprise system.
“I have never understood why it is ‘greed’ to want to keep the money you have earned but not greed to want to take somebody else's money.” - Thomas Sowell
CIRCULAR FLOW MODEL