“Bell-Work” (Should be completed within first 5 minutes of class) Q: What is economics? Explain in your own words and use any prior knowledge

Simulation

Unit 1: What is Economics? Standard 1.1.1, 1.1.2, 3.1.2

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

Households Businesses Government What do economists do? Economists study in great detail the CHOICES made by: Households Businesses Government

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 The idea that nothing is unlimited Examples: Time, $$$

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

Cost Benefit Analysis As a result of scarcity people must make decisions using a *costs / benefit analysis*: an 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

Can we have it all…? Want Need In this column list what you would buy if you had limitless money In this column, rewrite the list in order of most important to least important Cross off any item that is not required for survival. i.e. if the zombie apocalypse happened, you would probably leave it when you flee… Circle any item that is “irreplaceable”. i.e. no substitute. You must have THIS thing.

Closing Video Scarcity & Choice https://www.youtube.com/watch?v=yoVc_S_gd_0

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?

Objective / HW Objective: I can define Economics and explain its relationship to scarcity Language Objective: I can read and discuss what economics is and how it relates to scarcity HW: What is Economics? Reading

Explain the concept of scarcity Bell Work 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, businesses, patents

We will share-out and then I will share my examples with you! Working in Pairs! In your table pairs take 3 minutes and think and write 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

Most Successful Shark Tank Product https://www.youtube.com/watch?v=SL-mdEbx4jc

Objective / HW Objective: I can identify the 4 factors of production and explain the risks/rewards of Entrepreneurship Language Objective: I can read and discuss the 4 factors of production and the risk/rewards of Entrepreneurship HW: Shark Tank Episode Analysis & Constructed Response

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: A few summers ago 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 http://www.criticalcommons.org/Members/fsustavros/clips/cse-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

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

Objective/ HW Objective: I can describe opportunity cost by using examples Language Objective: I can read and discuss the concept of opportunity cost by using examples HW: Scarcity Opportunity Cost Assignment

Describe what opportunity cost is and how it impacts your choices Bellwork Describe what opportunity cost is and how it impacts your choices Identify the 4 factors of product

Production Possibilities

Production Possibilities Curve (PPC) Production possibilities curve is a line that represents the maximum output of an economy. It is also helps economists visualize opportunity cost Imagine it as a pile of all the resources that could possibly be used.

Production possibilities curve What does point “B” represent? It represents lots of guns, but very little butter.

Production possibilities Curve What does point “C” represent? It represents lots of butter, but very few guns.

Production Possibilities What does point “A” represent? It represents underutilization, which is using fewer resources than an economy is capable of using.

Production Possibilities What does “X” represent? An impossible level of production Economy does not have enough resources to produce at the rate of “X”

Resources available: Your business has 6 pieces of paper to produce either paper airplanes or paper footballs. What are your production possibilities? Sheets of Paper Airplanes Footballs 6 5 1 4 2 3

Deriving a PPF 6 5 4 3 2 1 Footballs Steps: Airplanes 0 1 2 3 4 5 6 Steps: 1. Place each good on an axis 2. Use the schedule to plot the points 3. CONNECT THE DOTS to form a curve

Deriving a PPF 6 5 4 3 2 1 Footballs Steps: 1. Place each good on an axis 2. Use the schedule to plot the points 3. CONNECT THE DOTS to form a curve 6 5 4 3 2 1 0 1 2 3 4 5 6 Airplanes

Production Possibilities Frontier Footballs 6 5 4 3 2 1 Efficiency: producing the maximum possible output from available resources The curve (the line) represents what is attainable and efficient The points along the line represent maximum possible combinations of the two goods without new technology or growth Airplanes 0 1 2 3 4 5 6

Growth Important: If one of the 4 factors of production changes, then the curve will shift/change directions.

Growth Shift

Growth / Decline A shift to the right is an example of the growth of an economy. More resources A shift to the left is an example of the shrinking of an economy. Loss of resources

Opportunity Cost Revisted The law of increasing cost states as we shift the factors of production from making one good to another, the cost increases. In other words it increases opportunity cost.

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

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

HW Objective: I can describe and create a Productions Possibilities Curve Language Objective: I can discuss what a Productions Possibilities Curve is HW: PPC Assignment

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!)

Begin: Unit 1 Project: Business Resume Post Unit 1 Assessment Unit 1 Assessment Begin: Unit 1 Project: Business Resume Fully read directions and grab a Chromebook Must be in resume format Utilize the “action verbs” cheat sheet The importance of “soft skills”