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FHBM1014
PRINCIPLES OF
ECONOMICS
MAIN TEXT
Irvin B. Tucker (2011)
Economics For Todays
World 7th edition
Publisher: Thomson
South Western
Method of Assessment
Mid Term Test (Week 8) 15%
Group Report (Week 10) 15%
Group Presentation (Week 11) 10%
Total Coursework 40%
Final Examination 60%
TOTAL 100%
COURSE MATERIALS
Lecture Notes
Tutorial Questions
Assignment Question
Unit Plan
Also known as
factors of
production
4 Types of Resources
LAND
LABOUR
CAPITAL
ENTREPRENEURSHIP
What is a land resource?
any natural
resource
provided by
nature
Forests, oil,
wind, sea, air
Natural resources:
Renewable resources
nature can automatically
replace (e.g. clean air).
Non-renewable
resources
nature cannot
automatically replace
(e.g. oil).
RENEWABLE RESOURCES
Renewable resources are
natural resources that can
be replenished in a short
period of time.
Solar Geothermal
Wind Biomass
Water
NONRENEWABLE RESOURCES
Entrepreneurship organizes
resources to produce goods
and services
What is the
economic problem?
Providing for peoples
wants and needs in a
world of scarcity.
SCARCITY
Condition in which:
Human wants are GREATER than
The available limited supply of
time, goods, resources
What are the three
fundamental
economic questions?
1.What to produce?
2.How to produce?
3.For whom to produce?
LINKS BETWEEN SCARCITY,
CHOICE & OPPORTUNITY COSTS
?
POSITIVE vs. NORMATIVE
ANALYSIS
State governments should be allowed to ?
collect from tobacco companies the costs
of treating smoking-related illnesses