What are the 3 factors of production? What are trade offs? Welcome back! 9/2/2014 What are the 3 factors of production? What are trade offs?

Analyze the lyrics How do you think this song is connected with Economics?

Essential Question! How does economic self-interested (consumers and producers) benefit society? How can we think like an economist?

Big Money! Congrats! You have just won Powerball for 57 Million dollars! What are you going to do with the money? What would you buy? Who would you share it with?

What is Economics? The social science concerned with the problem of scarcity What is Scarcity? Not enough resources to meet demand Why do you think scarcity is a problem? What else is economics? The science of decision making

Knowing about economics can help us understand Why people make the choices they do Why would someone buy a more expensive product when a lesser priced good is available? Why would someone drive to Florida when they could fly?

Cost/Benefit Analysis Chart Benefits (what you get) Costs (What you give up) Joining the Military Attending UD Attending Hawaii No College/ McDonalds/ 8.50/ 40 hrs Professional Sport No College

How do these choices influence society?

What does this mean? The social science concerned with how individuals and societies decide how to satisfy there unlimited wants given our limited resources. I can’t buy a car if I don’t have an income

“The Economic Problem” Scarcity…What is it? Limited resources but unlimited wants Unlimited Wants vs Limited Resources You cant buy 10 candy bars if the store only has 5 left to sell Can’t buy 3 burgers if you only have enough money for 1.

Scarcity means… We must use things efficiently in order to maximize the number of goods and services we can produce We can’t have everything we want Because of this we need to make choice What is essential (need) vs what we can give up and live without (want)

Stand Up! Pair up! How does scarcity impact you? Have you ever wanted something you couldn’t afford to buy? Did a store ever run out of the item that you wanted? Has anyone ever wanted you to do something that you didn’t have time to do? SHARE OUT!

Choices A mental decision Producers and Consumers

Consumers A person or group of people, such as a household, who are the final users of products or services. Pay to consumer a good or service.

As a consumer What did you buy today? How about over the weekend? What could you have bought? Why did you buy and why didn’t you buy?

Producers Process of combining various material inputs and immaterial inputs in order to make something that is for consumption. Act of creating output (a good or service) which has value.

As a Producer What did McDonald’s produce today? What could they have produced?

Which would you choose? If I gave you a choice between these four lollipops… Which one would you choose? Which one(s) would be your opportunity costs?

Another one! If I gave you a choice between the following four soft drinks, which one would you choose? Which one would you choose? Which one(s) would be your opportunity costs?

Last one If I gave you a choice between these four candy bars.. Which would you choose? Which one(s) would be your opportunity costs?

Plan the School’s Prom