Ms. Eleveld

Today’s Schedule  Classroom Rules Brainstorm  Course Handout  Ice Breaker  Economics in the News (if there is time!)

Camping Trip Ice Breaker  You are going camping for 1 summer month in Canada. What do you think are important things that you need while camping? What do you need to survive?  Each group of 3 selects items one at a time until each group has 5 items.  The group that is most likely to survive wins

Items Available Set of Matches Vegetable SeedsRope Cell PhoneSwiss Army KnifeMachete Can of TunaCan of BeansElastic BandsBag of Rice UmbrellaMapTarpCoat Hangers NewspapersSleeping BagPillowLawn Chair HammockRed Paint and Paintbrush 2 toothbrushesNail File Car KeysPlant FoodWater BottlePail

 Decide on which items you are happy with.  Decide which items you would like to have from the list  Decide which items you are willing to get rid of.  You have ten minutes to trade with other groups to get a set of supplies that you are happy with.

Last Step  Explain why each item that your group has is important to your survival

How do you think the Camping Activity relates to Economics?

In partners, brainstorm what the word ECONOMICS means to you

What’s happening this week in Economics 1. Sears, Target and Abercrombie and Fitch post weak sales. - Why do you think weak sales this week is important? - What do you think weak sales in major stores indicates about the economy?

What Does This Mean?  Consumers are starting to hesitate when purchasing items. Back to school is usually a time for stores to sell a lot of product.  The key to a booming/good economy is financial growth.  The Question: If people are hesitant to spend their money, how is the economy going to grow and expand?

Spanish Debt % of bank loans in Spain are not being paid back. - If someone cannot pay back their loan, where does the money come from?

What Does This Mean?  Normally banks think that 2-3% of people will not be able to pay back their loans. They, therefore, keep approximately this amount of money in reserves. The Question: Where is the bank going to get this money from?

More about Spain  Spanish villages are being put up for sale for as little as $  More and more rural villages are being abandoned as the younger generations seek jobs in the city.  With the economic hardships that are happening in Spain, the villagers are trying anything they can to make some money.

 Owy4S8 Owy4S8  You can’t even buy a condo in Mississauga for $

Learning Goals  What is a learning goal? ○ The content that we will be learning in a given day, week or unit. ○ Learning goals are derived from the Ontario Curriculum for Grade 11 Economics and changed into student friendly language.  For Example, Ontario Curriculum – Explain, using specific examples, the economic problem of scarcity and the choices and trade-offs that individuals and societies must make. Student Language – ○ I will be able to understand the concept of Scarcity ○ I will be able to understand how the choices that we make affect the economy.

Today’s Learning Goals 1. I will understand the concept of scarcity and why it is a problem. 2. I will be able to explain real-world examples of scarcity 3. I will understand the difference between Micro and Macro economics 4. I will be able to explain the three basic types of economic choices – what, how, and for whom to produce.

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.  These resources are the inputs of production: land, labor and capital.  People must make choices between different items because the resources necessary to fulfill their wants are limited. These decisions are made by giving up (trading off) one want to satisfy another.  E.g. Someone wants a $20 T-Shirt AND a pair of $20 pants but they only have $30.

Incentives  A reward that encourages an action or penalty that discourages an action. E.g. if the price of pop falls compared to the price of juice, consumers have an incentive to buy more pop than juice.  Economics is split into two categories Microeconomics and Macroeconomics

 So why is Scarcity a problem?  In partners, find 3 real world examples of Scarcity. Be prepared to present your examples (you may use PPT if desired)

Learning Goal #1 and 2 1. I will understand the concept of scarcity and why it is a problem. 1. I will be able to explain real-world examples of scarcity

Unit 1 – The Basics  What is economics? A social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and incentives.  Economics is split into two categories Microeconomics and Macroeconomics

Microeconomics  the study of choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments  Sample Question: Why are people buying more DVD’s and fewer movie tickets?

Macroeconomics  The study of the performance of the national economy and the global economy.  Sample Question: Why did inflation in Canada start to increase in 2008?

Your Task  In partners, find 1 example of Microeconomics and 1 example of Macroeconomics in the news.  Be prepared to explain why you chose each topic.

Learning Goal #3 I will understand the difference between Microeconomics and Macroeconomics

Goods and Services - Outputs  Goods – physical objects, such as cell phones and cars  Services – tasks performed for people, such as hair dressers and car repair service.

3 Economic Choices  What to produce  How to produce it  For whom to produce it for

1. What to produce  What we produce changes over time.  How do producers know which type of product to produce and how much of it will be purchased?

2. How to produce it  Goods and services are produced by using productive resources that economists call Factors of Production (Input) which are grouped into three categories; Land – natural resources Labour – people and their physical and mental work efforts Capital – tools, instruments, machines, buildings and other things that businesses use to produce goods and services.  How do producers decide on which resources and how much of each resource to use?

3. For Whom to produce  The consumption of goods and services that are produced depends on the incomes that people earn.  People with large wages can consume more goods and services than people with lower wages.  What are some ways that people can earn income?  How do producers know who is going to buy their product?

Learning Goal #4  I will be able to explain the three basic types of economic choices – what, how, and for whom to produce.