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Presentation
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Ten Principles of Economics

Introduction
what is Economics ?
Economics is the study of how society manages its scarce resources.

Scarcity
Scarcity means the limited nature of societys resources.

 Decision is the important in the economy

One pice of land is use for the different purpose

For collage For hospital For temple For play ground For any other

Principle #1: People Face Trade-offs

There is no such thing as a free lunch. Making decisions requires trading one goal for another.
To get one thing, we usually have to give up another thing.

weapon v. food Food v. clothing Efficiency v. equity

Making decisions requires trading off one goal against another.

Efficiency
The property of society getting the maximum benefits from its scarce resources.
Equity The property of distributing economic prosperity fairly among the members of society.

For example,

Tax dollars paid by wealthy Americans and then distributed to those less fortunate may improve equity but lower the return to hard work and therefore reduce the level of output produced by our resources.

Recognizing that trade-offs exist does not indicate what decisions should or will be made.

Principle #2: The Cost of Something Is What You Give Up to Get It Making decisions requires individuals to consider the benefits and costs of some action. Example Whether to take rest or to work? Whether to study or go out for movie? Whether to go to play or sleep in?

Opportunity cost
The opportunity cost of an item is what you give up to obtain that item.

Thank you