The 5. Es of Economics. I. What. Is Economics Just what is the study of economics A common textbook like. Economics is the study of how we choose to. This definition has four parts that we need to discuss the study of economicschoicescarcitymaximizing satisfaction. A definition of economics that I used when I first taught. NOTE I am Mark and soon after I moved to Illinois I bought a. Wonder Lake in Mc. Henry County. Wonder Lake is a nice. Latest breaking news, including politics, crime and celebrity. Find stories, updates and expert opinion. This study quantifies and describes levels and trends of mortality and nonfatal health outcomes among children and adolescents from 1990 to 2015 to provide a fr. My definition highlights an important component of economics. SCARCITY. The reason why I didnt have a boat, or the reason why you. SCARCITY. The term scarcity has a slightly different definition in an. NOTE Many words have different meanings in. For example, lets take the word DEMAND. If I ask you What happens to the demand for boats. If the price of boats goes up, then demand for. Erskine College Drivers Education' title='Erskine College Drivers Education' />NO THE DEMAND DOES NOT GO DOWN. The quantity. demanded goes down, but not demand itself. BECAUSE. ECONOMISTS HAVE A DIFFERENT DEFINITION FOR DEMAND. Well talk more about that later. Another example is the word. INVESTMENT. In an economics class the term investment. NOT mean the stock market, money markets. We will have to call such things financial. So back to the term SCARCITY. Loading Search Options. Overview Search Training Education Programs Search Providers Schools. Alphabetical Centre List. Most DriveTest Centres are open full time from Monday to Friday or Monday to Saturday, with others open on a parttime basis as travel points. List Entry Group Sort List Entry Group Sort 201711 Addressing Assignment of Benefits Abuse Tops the List of Action Steps Following One of the Most Active. Scarcity does not mean that only a. For example, I grew up in. Minnesota. About 3. Erskine, Minnesota. Just outside of town a certain type of. They have named it. Erskinite. Erskinite is only found near Erskine, Minnesota and only. BUT IT IS NOT SCARCE. WHY. Because nobody wants it. For there to be scarcity things must be. LIMITED and WANTED. There is plenty of ERSKINITE and it IS NOT SCARCE. Goods and services are scarce. These are the things that we want. Goods are tangible things that satisfy our wants like boats. Even in the United States one of the richest countries in. WHY This brings us to another important principle in economics. After teaching economics for a year or so, I bought a boat. Since. I defined economics as the study of why I didnt have a boat I had. But then I simply changed my definition slightly. Now. economics is the study of why Mark doesnt have a. This brings us to that second principle economists assume that. Erskine College Drivers Education' title='Erskine College Drivers Education' />UNLIMITED WANTS. Once I got a boat, I wanted a bigger. After getting a bigger boat I wanted a sailboat. I now own 5 boats and I. Do we ever have EVERYTHING that we could ever. Since human wants are unlimited, and resources used to satisfy. Even in the US, one of. SCARCITY. Do you have everything that you want There is always scarcity, because human wants are unlimited. This then brings use to a third important idea Because of. MUST MAKE CHOICES. Some economists call this the. We cant have everything that we want so we. This is what economics is really all about MAKING CHOICES. Because of scarcity we as individuals, and our society as a whole. For example when I was thinking about buying a. I also needed shoes for my daughter. If we assume that I. I had a choice to make a boat or shoes Hm m m m m I have a nice boat Our goal is to make choices that reduce scarcity as much as. Because of unlimited wants we can never eliminate scarcity. Hopefully, this is what. Another way to say this is that we want to get the MAXIMUM. SATISFACTION possible out of our limited resources. We dont want to. BEST choice. There are three, and only three, options choices for society to. Those three options are economic growthreduce our wants, anduse our existing resources wisely Dont waste the few. Lets look at each of these briefly. Economic Growth the first ELets define Economic Growth as an increase in the ABILITY to. This is not the way the term is normally. Later this semester well discuss the various definitions of. Economic Growth, but here well use this more fundamental. Economic Growth is an increase in the ABILITY to. This means we are ABLE to produce more, but it doesnt necessarily. More on this later. This type of Economic Growth is caused by a more resourcesb better resourcesc better technology. If we only had more resources we could produce more goods and. This will reduce scarcity and. All societies. therefore try to achieve economic growth. Reducing Wants. A second way for a society to handle scarcity is to reduce its. If we just didnt want so much then there would be less. For example we know that gasoline is scarce. Can you get. all that you want for the price you want If you have to pay a price. Space on our roads is also often. Lets say that the president of the United States. SHARE A CAR WITH YOUR NEIGHBOR. It includes a law. ONE CAR FOR EVERY TWO FAMILIES. This. would reduce the scarcity of gasoline and space on our roadways, but. The option of REDUCING WANTS is one of the options that societies. Maybe during war time, if our president asks us to share a car with. But it is not a long term solution to the. Although it is an. That brings us to the third option for dealing with scarcity and. Es of economics. Using our existing resources wisely maximizing. Societies can reduce scarcity not just by 1 getting more. ECONOMIC. GROWTH, or by 2 REDUCING ITS WANTS, but also by 3 USING ITS. EXISTING RESOURCES WISELYThere are four ways that societies can use their EXISTING. I call these the 4 Es of economics. The fifth E economic growth also. ADDITIONAL resources. Societies will try to achieve all 5 Es of. The four ways that societies can use their EXISTING resources to. Productive Efficiency. Allocative Efficiency. How To Install Directvobsub X64. Full Employment, and. Equity. Maximizing Satisfaction Four More Es Efficiency, Efficiency, Equity. EmploymentLets discuss each of these individually keeping in mindtheir definition,examples of each, and most importantlyhow do they reduce scarcity and help society achieve the. MAXIMUM SATISFACTION from their available resources PRODUCTIVE EFFICIENCYProductive efficiency can be defined as, or achieved by, producing. By producing at a minimum cost, FEWER RESOURCES are used and MORE. This reduces scarcity and gives us more satisfaction. We can produce at a minimum cost and achieve productive efficiency. Lets look at each of these individually using some examples. REMEMBER our goal is to understand how they reduce scarcity and help. This is the goal of economics. You must keep this goal in. How does this MAXIMIZE SOCIETYS SATISFACTION If businesses use extra resources that they do not need, then. Since we know that resources are. By not using more resources than. PRODUCE MORE. Examples a Janitors at Harper. Lets assume that Harper College employs 5. If. Harper then hired 2. Even. though they could probably find something to do to keep busy. Fifty janitors can do the job. So society. would be better off if Harper did NOT employ these additional. It would be productively inefficient to employ 7. Harper. Harpers costs will be higher productive. Grocery stores USSRSeveral years ago, one of my students gave me this example. She had visited Moscow when the communist Soviet Union still. She said that she was surprised when she entered a. What a waste of labor resources. In the US we find one, or two. In. Moscow ALL stands were open with four employees each. This is. productively inefficient. Their costs are higher and since. They are not. achieving the maximum satisfaction possible from their limited. MotorolaSearsAT Tetc. Take a brief look at one or a few of the following news. When you click on the link they should appear in a. Are these layoffs good for society If each company was able to continue producing the same. So, if it would be good for Harper to only employ 5.