Warm up List at least 3 “economic” choices that you think people can make

Why economics? Every question in economics is, at its most basic level, about individuals making choices. If it isn’t about decision making, it isn’t economics. But since there are other people around us, economics is also about interactions. The purpose of Economics is to… Develop fluency with core economic concepts and events Guide your decision making  this course will change how you think Meet our responsibilities as participants in our market economy. You all are economics experts, you just don’t know it. A lot of this semester will be you discovering how much about economics you already know, just did not have language for

HW= 2.3 and chart on Factors of Production Agenda Warm up CIS handout and course review Scarcity Cost Benefit Analysis Future consequences count Free lunch? Incentives matter Markets and trade Exit Ticket Objectives Students will be able to state key class and course policies define scarcity, the 6 principles of economics, and markets create examples that illustrate costs, benefits, incentives, and markets

CIS handout Read through the course description: units 1-4 Formative v summative assessment Revision and reassessment – Your ticket to doing so is your notes! Integrity policy Sign it!

Scarcity Scarcity= ??? when there is a limited supply of resources

Scarcity We know a resource is scarce if, when its price is set at zero (it is free), there is still not enough of that resource to satisfy everyone’s demand. – With a partner, think of some goods that are scarce. – Then, think of some goods that are not scarce. Is money ($$$) a scarce good? – Why or why not?

$carcity activity List all the things you would buy if you found $2,000 dollars→ no individual purchase can cost more than $200 dollars What did you have to do as you had less and less money to work with? Because almost everything is scarce, people must make choices between resources Economics is the study of the choices people make as a result of scarcity

Cost Benefit Analysis The choices you make always have costs and benefits – Cost= what you lose when making a choice – Benefit= what you gain when making a choice Student lists the costs and benefits of the following actions: – Buying a chipotle burrito – Going to college – Graduating from high school Perform a cost benefit analysis on: doing 90 in a 65

Future Consequences Count The choices we make not only have costs now, but also in the future Example: – Doing 90 in a 65  what are some future consequences? – Not graduating high school  what are some future consequences?

How much does Facebook cost to use? Costs=

Free lunch principle With a partner you haven’t talked with yet, list some things that you think are free The free lunch principle states that there is no such thing as a free lunch. Everything has a cost, even Facebook

Incentives matter An incentive= something that motivates you to perform, or not perform, an action Identify the following as negative or positive incentives with a partner. Be sure to explain why – Speeding tickets – Saturday school – An hourly paycheck – Grades

Markets coordinate trade principle What are markets? any arrangement that bring buyers and sellers together to do business with each other Examples: Markets are efficient→ everyone has their basic needs met – Buyers buy exactly how much they need (they meet their demand) – Sellers purchase exactly how many items they want to sell (setting their own supply)

Processing! Think back on the terms and principles we defined today and write a short story, a poem, or draw a cartoon that shows what these mean in an economic sense. Do these on a new piece of paper – Scarcity – Markets – Cost benefit analysis – Future Consequences count – Free lunch – Incentives matter