Have out Opportunity Cost Worksheets From Friday  Go over Franklin’s Decision  Discuss the Practice with Opportunity Cost Worksheet with the people sitting in your group

Opportunity Cost Reflection  Think of a tradeoff that you faced (or will face) today and state the opportunity cost of that decision. Explain why you made the choice that you did (the opportunity benefits involved)  Possible examples: outfit, lunch, homework completion, plans after school, etc.

Resources Essential Thinking Skill: To demonstrate understanding of the concept of scarcity when applied to available resources

Resource Scarcity Game  There are four countries (groups)  Envelopes detailing your resources are random  Your countries success will be assessed at the end

Two Rules  You may NOT use anything else in the room  Since you are island nations, you may NOT share resources

Tasks to Be Completed  FOOD: four 3-inch strips of green paper  SHELTER: a 2-inch white square attached to a yellow triangle  CLOTHING: a four-color paper chain  EDUCATION: a four-page book with a color cover

Assessment  Distinguish between quality and quantity  Were the country’s projects completed?

Resource  What is needed to produce goods and services

Economists classify Resources or factors of Production in 4 categories 1. Capital-produced goods that can be used for further production (tools, machinery, investment money) 2. Entrepreneurship (special talents for searching out new ideas and taking financial/business risks) 3. Land (included natural resources) 4. Labor (work, effort, and time)

Discuss  Why was there a difference between envelopes?  Classify the items in the envelopes according to the type of resource they are  Did any group “have it all”?  How was trading facilitated?  Were there resources not needed?  Could resources be used in more than one way?  Could additional products be created?  How did labor affect the game?  Did anyone take charge? Did just one person do the assembly of the task products?  What did it take for those with fewer resources to succeed?  No ruler? No glue? No writing utensil? Solutions?  What other types of capital would have been useful?

How Do We Deal?  People can do without some of the things they want.  People can create more resources by new discoveries, more training, better tools  People can produce more by better use of resources  People can redistribute goods and services so that everyone has enough.

Module 1 Review  Complete this to the best of your ability either with or without your notes  This will be a good review before your assessment

Introduction to Economic Systems  Read through the article to learn about the 3 different types of economic systems