 Welcome back to Hereford High School! Congrats on making it to your SENIOR year!  In your last year of school, identify one goal you want to accomplish by June and explain how you can achieve that goal.

 Innovative \ ˈ i-nə- ˌ vā-tiv\; adj   Word Root: Latin Novus: “new”   able to introduce or create something new

 Welcome back to Hereford High School! Congrats on making it to your SENIOR year!  In your last year of school, identify one goal you want to accomplish by June and explain how you can achieve that goal.

 Novice \ ˈ nä-v ə s\ n:   Word Root: Latin Novus: “new”  a beginner; one who is initially unskilled

 Mrs. Higgins Shaull (a.k.a – Mrs. Shaull) Social Studies Office  Required class for graduation – EPI or AP Economics  Personal Finance Portfolio You will need to submit either electronically or in hard copy at the end of the first unit (assessment)

 An open letter to students returning to school An open letter to students returning to school  Students will describe basic economic concepts in order to explain how scarcity and opportunity cost are basic economic principles.

 Jumpstart Pre-test – what do you know?  Ju Nick D’Aloiso sells his app to Yahoo…for $30 million Lost or Stolen Credit Cards…

 Scarcity – The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.  Opportunity Cost - The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

 What generalizations can you make about millionaires?  What choices did they make that impacted their success?  What choices could you make that would increase the likelihood of you becoming a millionaire?

 What are the consequences of making these decisions?  Do all decisions have consequences? Why?  Why must we make choices?  How are scarcity and shortage different?

 How are millionaires affected by scarcity and opportunity cost?  Students will describe basic economic concepts in order to explain how scarcity and opportunity cost are basic economic principles.

 How are millionaires affected by scarcity? Scarcity - The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently. (you will write this definition in a few minutes – do not need to write it now). SAT word of the Day: Renovate \ ˈ re-n ə -v ā t \; tr.v. Word Root: Latin Novus: “new” to restore to a former better state; to renew or revive

 Scarcity – The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.  Opportunity Cost - The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

 Complete the worksheet you received as you walked into class: Identifying Opportunity Cost SAT word of the Day: Renovate \ ˈ re-n ə -v ā t \; tr.v. Word Root: Latin Novus: “new” to restore to a former better state; to renew or revive

 How are millionaires affected by scarcity? Scarcity - The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently. SAT word of the Day: Novelty \ ˈ nä-v ə l-t ē \; n Word Root: Latin Novus: “new” something new or unusual; an amusing toy or food item

 Students will describe and apply economic vocabulary to scenarios in order to explain how scarcity and opportunity cost are basic economic principles.

 Essential Vocabulary Economics Financial Literacy Factors of Production (additional definitions included) Capital  Human  Physical Opportunity Cost Scarcity Entrepreneur Cost/benefit analysis (additional definitions included) Speculation Stock Trade-off  Vocab you should know… Goods Services Needs Wants Cost Benefits Budget Credit Debit Income Profit Use the textbooks to find your definitions!

 Create an image that best describes one of the economic terms we defined today in class. Must be completed on white paper (no lines) Must include color  See examples for ideas.  Homework due Friday 8/30/13

1.People choose. What is the choice being made? Who is making the choice? 2.All choices involve cost. What are the alternatives? What is being refused? 3.People respond to incentives in predictable ways. What are the potential benefits? What are the potential costs? Have they changed? 4.Economics systems influence individual choices and incentives. Have the choices made by others influenced the individuals in the situation? What are the rules of the system? How might the rules have changed? 5.Voluntary trade creates wealth. Why is exchange taking place or not taking place? How do these choices influence trade and exchange? 6.The consequences of choices lie in the future. What costs and benefits do you foresee? How uncertain or risky is the choice being made? *The foundation of Economic reasoning!

 The Robinsons and the Meltons are two families that earn the same income, live in the same neighborhood, are of the same age, and have 2 children each. Yet the Robinsons are SIX times wealthier than the Meltons. Why is this?

 Students will describe and apply economic vocabulary to scenarios in order to explain how scarcity and opportunity cost are basic economic principles.

 Create an image that best describes one of the economic terms we defined today in class. Must be completed on white paper (no lines) Must include color  See examples for ideas.  Homework due Friday 8/30/13