Applied economics g12

1. Applied Economics – Grade 12

2. Applied Economics simply
means APPLICATION of the
economic theories and
concepts

3. But What is
Economics?

4. It is a social science that deals
with the study of proper allocation
of scarce resources to satisfy
unlimited human wants and needs

5. It is a social science that deals
with the study of proper allocation
of scarce resources to satisfy
unlimited human wants and needs

6. It is a social science that deals
with the study of proper allocation
of scarce resources to satisfy
unlimited human wants and needs

7. It is a social science that deals
with the study of proper allocation
of scarce resources to satisfy
unlimited human wants and needs

9. It is a social science that deals
with the study of proper allocation
of scarce resources to satisfy
unlimited human wants and needs

10. It is a social science that deals
with the study of proper allocation
of scarce resources to satisfy
unlimited human wants and needs

11. Study of scarcity
Study of how people use resources
The study of decision making

12. Economics is
about making
choices

13. We are force to make choices!

14. We need to study the concept of
OPPORTUNITY COST?

15. But what is Opportunity Cost?

16. o refers to the value of what you have to
give up in order to choose something
else.

17. The opportunity cost of a
choice is what you gave up to
get it.

18. If you have two choices: an APPLE or an ORANGE

19. Opportunity Cost = the value of
the opportunity lost

20. Benefits
Cost

21. The greatest benefit but with
the lowest cost

22. Two major economic problems:
Production
Consumption

23. In analyzing the concept of
supply and demand we
need the help of Econonmic
GRAPH