“Do Now” (Should be completed within first 5 minutes of class) Q: What is economics?

STANDARD 1.1.1, 1.1.2, Unit 1: What is Economics?

What does this have to do with this class? Economics: the way people make decisions in a world of scarce resources Yesterday’s simulation challenged you to pick between your needs and wants. You had to cooperate in pairs to reach an acceptable decision!

Essential Question How does households, businesses, and government confront unlimited wants but limited resources?

What is Scarcity? Economics studies scarcity of goods and services and choices involved  Scarcity = people, businesses, and governments have more wants and needs than they have resources  Long term & Permanent  Examples: Time, $$$

Cost Benefit Analysis As a result of scarcity people must make decisions using a *costs / benefit analysis*: economic approach that is used to determine and choose the best choice/option NOT PLAY FOOTBALL 1  Costs: Might give up chance for scholarships  Benefit: More time for other extracurriculars, won’t get injured PLAY FOOTBALL 2  Costs: Injury (concussions), time (practice goes late)  Benefit: Scholarships for college, fitness, enjoy friends and recognition

Recap / Knowledge Check Classroom Discussion: What are some examples of scarce resources in your own life. What kind of economic decisions do you make at school?

Do Now Define Economics Explain the concept of scarcity

Economics and Resources You make economic choices based on your needs and wants A resource is anything that people use to make or obtain what they need or want

How exactly do we get what we need/want? Factors of production (to make): 1. Land: (Natural Resources) 2. Labor: (Human Resources) 3. Capital: Human-made resources used to complete tasks  Capital Goods: tools, factories, etc 4. Entrepreneurship: clearly defined property rights, open trade policies, BUSINESS MEN/WOMEN!

Working in Pairs! In your table pairs take 3 minutes and think of a real life example for each of the 4 factors of production We will share-out and then I will share my examples with you!

What factor of production do these images illustrate? Natural Resources (land)

What factor of production do these images illustrate? Capital

What factor of production does this images illustrate? Human resources (labor)

Entrepreneurship Entrepreneurs: someone who *risks* economic failure to come up with a new product, business or idea in order to sell it They fuel economic growth and development!  1.Independence! 2.Creativity! 3.Good Working Conditions! High Risk can translate into high income and wealth

Essential Question What Economic factors influence economic growth in developing countries?  1. Land  2. Labor  3. Capital  4. Supportive Government Policies: Entrepreneurship, Open Trade, and Rule of law.

“Do Now” What are the four factors of production? What are the expected costs and benefits of being an entrepreneur?

Bellwork Explain a time in your life where you had to make a choice but you had many other options or choices available. What were you thinking/wondering as you were deciding what your final choice would be?

What is opportunity cost? Choosing among alternative uses for available resources forces people to make choices. One good is sacrificed for another. This is called a trade-off. Opportunity Cost: the cost of this trade off. The value of the next best alternative given up to obtain that item. Or second to next choice  Example: During the summer I had to choose between going to the Eminem concert or a friend’s birthday. I choose the Eminem concert! The opportunity cost is friend’s birthday  se-1-2-solman-opportunity-cost-1 se-1-2-solman-opportunity-cost-1

Which number choice is the opportunity cost? How will Mr. Said spend his lunch period of 30 minutes Number 1 Choice: Eat Lunch Number 2 Choice: Go print papers Number 3 Choice: Grade Papers Number 4 Choice: Relax and do nothing

Do Now Describe what opportunity cost is and how it impacts your choices

How opportunity costs works… Because of limited resources, every choice has an associated cost  This is the value of the good you must give up when you make a choice

Productions Possibilities Frontier Imagine a company/country that can only make 2 things!  How do we visualize that? Productions Possibilities Frontier: graph that shows all of the possible combinations of two goods or services that can be produced within a stated time period.  PPF Curves show opportunity cost Represents a country’s total possible output for two goods  Why just two?  X and Y axis, graphs are showing linear relationships  Shows opportunity cost of producing more of one good/less of another

The curved line represents efficient use of resources 10 of Good B and 1 of Good A is efficient! 6 of Good B and 1 of Good A would be what? Anything above the line of efficiency is *impossible* to attain without new technology and inventions

***IMPORTANT PLEASE WRITE*** A shift right/up in the curve represents an introduction of new technology or discovery of new resources A shift left/down represents either a natural disaster or loss of resources

Do Now How was your weekend?

Define and Apply (Unit 1 Study Guide) What is economics! Opportunity Cost Entrepreneurship (Risks, Rewards, and Economic Impact) PPF Curves and Positions of Letters Factors of Productions and Examples (don’t forget capital goods!)

Do Now What have you learned in class so far? Writing Tracker  Topic: Should the death penalty be abolished in the USA?