Chapter 1 What is Economics?

Chapter 1 What is Economics?

Author: Matthew Lonn

Understand the basic definition of economics and how it is applicable to students lives.

All economic analysis is based on a list of basic principles. These principles apply to three levels of economic understanding. First, we must understand how individuals make choices; second, we must understand how these choices interact; and third, we must understand how the economy functions overall. Everyone has to make choices about what to do and what not to do. Individual choice is the basis of economics, if it doesn't involve choice, it isn't economics.

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What is Economics

Welcome to AP Economics.

Use the slideshow and video to give yourself a basic understanding of what economics is and how it is applicable to your life.

Questions you should be able to answer after the lesson

1. What is the definition of scarcity and how does it relate to the definition of economics?

2. Be able to describe a situation where you used marginal analysis.

3. What are some real life examples of opportunity costs in your life recently.

4. The difference between a normative and positive statement.

Chapter 1 Notes

Explanation of Opportunity Cost

Man gives specific example of opportunity cost.

Source: You Tube