Arctic Survivor story
What made it difficult to survive?
Give you another chance to work on it today
15 minutes before I give you the materials
15 minutes to work on the task.
relatively unlimited needs and wants with
The study of ECONOMICS is the social science that
studies how people choose to use scarce resources to
satisfy relatively unlimited needs .
Economics can therefore be defined as the study of
how to distribute scarce resources among competing
Economists assume that people act in their own self
interest, meaning that people are most concerned by
the personal satisfaction they will gain from the
choices they make.
Helps to explain consumers personal choice
The term used for this satisfaction or pleasure one
derives from a good or service is called utility.
The other major factor used when making economic
choices is cost. When making the choice to obtain one
item, it prevents you from choosing an alternative
There is therefore a cost associated with not selecting
the alternative. When economists refer to cost they are
not referring to money. The term used is opportunity
cost and it measures the utility that could have been
gained by the choosing the alternative.
From the Greek word, micro, meaning small,
microeconomics deals with the behaviour of
individual participants in society (e.g. consumers and
Examples of microeconomic choices might be, how
much are you willing to pay for a hamburger and soft
drink at the school cafeteria? How much is the school
cafeteria willing to sell those items for?
From the Greek word, macro, meaning big,
macroeconomics deals with the behaviour of entire
economies and the decisions that society must make
as a whole.
Examples of macroeconomic choices might be how
should a country deal with increasing levels of
unemployment or a rapid decline in the value of its