Economics studies how society manages its scarce resources and how people make decisions and interact with each other in the economy. It analyzes forces that affect the overall economy like growth, unemployment, and inflation. Economics is built upon 10 key principles regarding individual decision making, interaction, and how the overall economy works. These principles examine concepts like tradeoffs, costs, incentives, markets, and the relationship between inflation, unemployment, and monetary/fiscal policy. Understanding these fundamental principles provides the building blocks for more advanced economic analysis.
2. “
The word "economics“
has its origin in the Greek
"oikonomikós"
(relating to household
”
management), from
"oikos" (house).
3. “
Economics studies how society
manages its scarce resources.
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How people make decisions:
How much they work,
”
What they buy,
How much they save or invest...
4. “
Economics studies how society
manages its scarce resources.
----------------------------------------
How people interact
with each other:
How buyers and sellers
”
Together determine the price,
and quantity of goods sold...
5. “
Economics studies how society
manages its scarce resources
----------------------------------------
How the Economy as a
Whole Works:
Analyze the forces and trends
that affect the economy:
Growth in average income,
unemployment, inflation etc.
7. Four Principles of Individual
Decision-Making
1 People Face Trade-offs
a Guns or Butter?
b Efficiency or Equity?
Good decisions are made
c when options are known
8. Four Principles of Individual
Decision-Making
2 Cost is What You Give-Up
a Not all costs are perceived
b Some costs are ignored
Opportunity Cost is whatever must be given
c up to obtain some item
9. Four Principles of Individual
Decision-Making
Rational People Think
3 at the Margin
a Decisions are rarely black and white
Marginal changes are small incremental
b adjustments to a plan of action
Marginal costs and marginal benefits are
c compared to make decisions
10. Four Principles of Individual
Decision-Making
4 People Respond to Incentives
Behaviour changes, as costs
a or benefits change
There are direct and indirect
b costs and benefits
Incentives and opportunity costs
c are compared in decision making
12. Three Principles of Individual
Interaction
Trade Makes Everyone
1 Better Off
a Competition and Trade is not
a Win-Lose Affair
b Isolation to Specialisation
c Partners in Progress
13. Three Principles of Individual
Interaction
Markets Usually Organize
2 Economic Activities Efficiently
Market Economy: Resource allocation with
a decentralised decision making as individual
and firms interact for goods and services
b Adam Smith: “Invisible Hand”
leads to desirable outcomes
Communism: Controls prevent self-correction
c and affect welfare of society as a whole
14. Three Principles of Individual
Interaction
Governments Can Sometimes
3 Improve Market Outcomes
a Market failure is the failure of efficient
allocation of resources
Externality: the impact of one person’s
b actions on the well being of another
Market Power: The ability of a single entity
c (or group) with substantial influence
16. Three Principles of the
Economy as a Whole
A County’s Standard of Living
1 Depends on Ability to Produce
Goods and Services
a Standard of living is linked to productivity
b Keys: Education , Tools and Technology
c Government Budget deficits lower
investment and productivity
17. Three Principles of the
Economy as a Whole
Prices Rise when Government
2 Prints too Much Money
a Inflation: Increase in the overall
level of prices
Culprit: Growth in the quantity
b of money supply (money value?)
Keeping inflation low is part of
c good public policy
18. Three Principles of the
Economy as a Whole
Society Faces Short-run
3 Trade off between
Inflation and Unemployment
Reduction in inflation causes
a temporary increase in unemployment
Restriction of money supply decreases
b spending leading to less sales
Monetary Policy and Fiscal Policy
c Are the instruments of control
19. “
Remember the 10 Building Blocks
------------------------------------------------
Even the most
sophisticated
economic analysis
is built using
the ten principles
used here…
Notas del editor
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes Now lets look at three incentives, and the related opportunities, that face community foundations, all connected to a need for better accountability. Each is discussed in more detail on the following slides. Discussion Question Do you feel any other pressures for better accountability?
Presentation Notes One of the issues in our field is widespread frustration with existing grant tracking software (i.e. FIMS, Foundation Power, Microedge etc.), noting that it has been difficult if not impossible to adapt it to track impact information.