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1. ECONOMICS

2. Economics is the study of the
economy, or the part of a society
that creates wealth. Wealth is
not just money. Wealth comes
from the production of goods and
services, which people buy with
money.
Introduction

3. People who study economics,
called economists, look at how
people create wealth, how they
use it, and how different people
get different amounts of it.
Introduction

4. A society creates wealth by
producing goods and services.
Goods include such objects as
apples, cars, and roads.
Services are things that people
do for others—for example,
gymnastics lessons, banking,
and dental care. People who buy
these goods and services are
called consumers.

5. LAND
Can mean a large farm or
a tiny workshop. Land
also includes natural
resources like oil and
minerals.
LABOR
Or people who work for
pay. Workers may be
rewarded with wages,
or—if they own the
business—with profits.
CAPITAL
This includes the tools,
factories, and offices that
are used to make the
goods and services.
The process of creating the goods and services is called
production. There are three major factors in production

6. Money is not counted as a factor
of production. Rather, it is the
means by which companies pay
for land, labor, and capital.
Companies get this money from
consumers who buy their goods
or services. And most consumers
get their money by working for
companies.

7. All the companies producing a
particular kind of product or
service are grouped together in
what is known as an industry.
Industries that make things are
called manufacturing industries.
Industries that sell services are
called service industries.

8. Producers of similar goods or services compete with each other for
consumers. The producers and consumers in an industry together
form a market.

9. Economists who study microeconomics look at how consumers spend their
money. They try to explain why consumers buy one product rather than
another. They also look at why companies choose to produce one good or
service rather than another.
Microeconomics

10. Law of suply and demand
The amount consumers want to
buy is called demand. The
amount companies produce is
called supply. Price strongly
affects supply and demand.

11. Law of suply and demand
If a manufacturer charges a high
price for a product, usually it will
sell few products. If it reduces
the price, usually it will sell more
products. A manufacturer aims to
find the price that will result in the
highest total profit.

12. Macroeconomics
Economists who study macroeconomics look at the value of all the goods
and services that a country produces. In this way, they measure a whole
country’s wealth. They also study economic growth, or how a nation’s
wealth becomes larger. Governments are interested in macroeconomics,
too. A government plays an important role in its country’s economy.

13. When a
government
decides which
goods and services
should be produced
and sold, the
economy is said to
be planned.
By contrast, when a
government lets
companies and
consumers decide
what will be
produced, the
economy is called
a free market.
They do this by
raising or lowering
taxes and changing
the amount banks
can charge for
loans. These
actions cause
people to have more
or less money to
spend on goods and
services.
Countries with
capitalist
governments have
free-market
economies. But
even capitalist
governments affect
the economy.
Countries with
socialist or
Communist
governments
usually have
planned economies.
In these countries,
the government
owns the means of
production—capital
and land.
Types of Economies

14. Traditional Market
Command or
Planned
Mixed
Is typically based on
bartering, trading, and
farming. The economy is
largely determined by
how things have been
done in the past with
little change. People in
traditional economies
tend to do the same jobs
as their parents. Can be
found in some pockets
of Africa and the
Middle East
(Sometimes called a
"free market") is one
based on supply and
demand. Consumers
are free to buy whatever
product they want.
Companies can make
whatever product they
want. There is little
government intervention
allowing the economy to
sort itself out through
competition. Ex: USA
The government closely
controls the economy.
The government
determines what goods
are manufactured, the
price they will be sold,
and who gets the profits.
The government owns
many of the major
industries. Countries like
Cuba, China, and the
previous USSR are
practical examples.
Is a combination of a
market and a command
economy. Some
industries are owned
and controlled by the
government, while other
industries are allowed to
be determined by the
market. Mixed
economies vary in how
much control and
regulations the
government has. Ex:
Nordic countries

15. Primary
Involves the extraction
and production of raw
materials.
Secondary
Involves the
transformation of raw or
intermediate materials
into goods.
Tertiary
Involves the provision of
services to consumers
and businesses.
Quaternary
Involves the research and
development needed to
produce products.
Economy sectors

16. Economic measures
There are a number of ways to measure economic activity of a nation.
These methods of measuring economic activity include:

17. Consumer spending
is when people buy
goods and services.
Interest rate
is how much interest is
paid by borrowers for the
money that they borrow.
Exchange rate
is how much one currency
is worth compared to a
different one.
Rate of Inflation
means that the general
level of prices is going up,
the opposite of deflation.
Stock market
is an institution where
humans and computers
buy and sell shares of
companies.
Unemployment rate
is the number of
unemployed people
divided by the total
population of that age
group of a country.

18. is a shortfall in a
government's income
compared with its
spending.
Gross National Product
is the total value of all goods
and services produced by a
country’s citizens in a
financial year.
Gross Domestic Product
is how much a place
produces in an amount of
time.
is the difference existing
between the total of the
country’s exports and
imports.
is the total amount of
debt owed at a point in
time by a government or
state to lenders.
is the total income of a
country, divided by the
number of inhabitants.
GDP
GDP per capita
GNP
National debt
Fiscal Deficit
Balance of trade

19. IMPORT
is a good or service bought in
one country that was
produced in another.
EXPORT
are goods and services that
are produced in one country
and sold to buyers in
another.
Free-trade
agreements on imports from
countries with cheaper labor;
seem responsible for the
decline in manufacturing jobs in
the importing nation.
Trade Deficit
occurs when a country's
imports exceed its exports
during a given time period.

20. Gross Domestic Product
Is a measure used to evaluate
the health of a country’s
economy. It is the total value of
the goods and services produced
in a country during a specific
period of time, usually a year.
GDP is used throughout the
world as the main measure of
output and economic activity.

21. Each country
prepares and
publishes its own
GDP data
regularly.
periodically publish
and maintain
historical GDP data
for many countries.
is considered to be
better off in
economic terms
than a country
with a lower level.
International
organizations such as
the World Bank and the
International Monetary
Fund…
A country with a
higher level of
GDP per capita…
Gross Domestic Product

22. The United States
has the largest GDP
in the world.
Germany has the
largest in Europe.
Nigeria has the
largest in Africa.
China has the
largest in Asia.
Brazil has the
largest in South
America.
Colombia is the #38
in the world.
Gross Domestic Product

23. The last one in
Africa is Sao Tome
& Principe
The last one
in America is
Dominica
The last one in
Europe is San
Marino
The last country
(190) is Tuvalu
1
2
3
4
Gross Domestic Product

24. Recovery
Usually, the government will initiate
programs to help individuals and
companies get started again and
slowly people start to find jobs. The
banks are forced to lower the
interest rates on loans.
Economy
The economy of a country is
decided by businesses – how well
businesses are doing or how
poorly. Economies are always
changing.
Slowdown
Businesses are still operating in a
healthy way but they stop hiring
new employees. Slowly the banks
start increasing the interest rates
on loans. People start to think
twice about buying something.
Expansion
This is a time when business is
booming. New businesses are
opening. There are lots of jobs for
people; wages are high, and the
unemployment rate is low.
Recession
It occurs when some major event happens,
such as a stock market crash, a war, a major
pandemic, etc. The interest on bank loans
skyrocket. Businesses can’t sell their products
because people are afraid to spend money.
Economic Cycle

25. Investopedia
https://www.inv
estopedia.com/
financial-term-
dictionary-
4769738
Brittanica
https://kids.brit
annica.com/kid
s/article/econo
mics/353081
Kiddle
https://kids.kid
dle.co/Economy
GDP
https://www.wo
rldometers.info/
gdp/gdp-by-
country//
Slidesgo
https://slidesgo
.com/slidesgo-
school
Sources

26. THANK
YOU