SCARCITY AND THE SCIENCE OF ECONOMICS
CHAPTER 1 SECTION 1
PAGES 5 - 10
WHAT IS ECONOMICS?
ADAM SMITH – 1723 - 1790
FUNDAMENTAL ECONOMIC PROBLEM
SCARCITY IN MARKETING
TINSTAAFL
THREE BASIC QUESTIONS
WHAT TO PRODUCE?
North Korea Compared to South Korea
HOW TO PRODUCE?
HOW TO PRODUCE?
FOR WHOM TO PRODUCE?
FOR WHOM TO PRODUCE?
WHAT IS THE DIFFERENCE BETWEEN A NEED AND A WANT?
NEED VS. WANT
Vs.
Vs.
Conspicuous consumption?
Secret Circus – $1.3 million
iPhone Case
$300,000
$17,000
$7.5 million – gold covered Lamborghini
The term conspicuous consumption–which means the use of a good or service to impress others–was coined by economist and social critic Thorstein Veblen in his study The Theory of the Leisure Class (1899).
FACTORS OF PRODUCTION
LAND
CAPITAL GOODS
LABOR
ENTREPRENEUR
LET’S BUILD A TOWER OF STRAWS!