WELCOME C&E STUDENTS Grab today’s handouts. Roll Call Question: “Would you rather eat 100 ants or 20 beetles?”

Warm Up All you need is a pencil Fill in the boxes with vocabulary you already know that deals with Economics. Do you have your ID and Agenda?

“What Went Into This Candy Bar?” List everything that went into making this candy bar from the time someone had the idea for the candy until the consumer purchased the candy in the store

Economics: 5.1 Intro to Economics Identify the basic principles of economics

Desert Island Imagine you are moving to a desert island with no kind of infrastructure. Write down what you will.. Want Need

Needs v. Wants What is the difference between the two?

I. Scarcity and Choice Economics- the study of how people seek to satisfy needs and wants with limited resources Needs and Wants Need- something necessary for survival Want- desire not necessary for survival

Maslow’s Hierarchy of Needs

II. Scarcity Scarcity- Goods and Services limited quantity of a resource to meet unlimited wants This is the driving force of economics Goods and Services Goods- physical objects Services- actions or activities that one person performs for another

Consumer sovereignty power of consumers to decide what gets produced producers meet demands or go out of business

III. Factors of Production Resources used to make all goods and services Land- includes all natural resources Labor- is the effort for which someone is paid White collar workers- high skilled office work Blue collar workers- low skill manual labor

Capital- any human-made resource to invest to produce goods or services Physical capital- buildings, tools, machines, etc Human capital- knowledge and skills a worker gains through education and experience

Entrepreneurs- risk-takers who decide how to combine other factors of production to create new goods and services

Buddy Up! Test what you just learned. With a partner on a sheet of paper. You will be looking at different elements that fall under one of the four factors of production. Your job is to correctly identify whether the element is: LAND, LABOR, CAPITAL or ENTREPRENEURSHIP

Name that Factor of Production Bill Gates Oil Going to school Hammer The night shift at McDonalds Leather Executive Office Assistant 8. A forest 9. 10 years experience teaching 10. Paper factory 11. A 10-year old at a lemonade stand 12. Washing machine

Answers Bill Gates - E Oil - Ld Going to school - C Hammer - C The night shift at McDonalds – Lb Leather – Land Executive Office Assistant - Labor 8. A forest – Ld 9. years experience teaching – Lb/C 10. Paper factory – C 11. A 10-year old at a lemonade stand – Lb 12. Washing machine - C

LETS LOOK AT OUR CANDY BAR Land Labor Capitol Entrepreneurship

IV. Trade-offs Trade-off- the process of giving up one desire in order to satisfy another desire Ex: video game vs. give girlfriend a present Ex: 2 more hours of sleep vs. studying for test

Opportunity cost- value of what is given up in a trade-off Ex: Dating- cost is not dating some other person Ex: College vs. working- cost is the $ you spend on college and $ you give up from not working

Immediate gratification- when you give up something in the long-term to satisfy an immediate want https://www.ted.com/talks/joachim_de_posada_says_don_t_eat_the_marshmallow_yet?language=en

The Budget Project You will begin the budget project today. The first part includes: A Dream Essay Short term and Long Term goals A personality test Finding a job that meets your salary. Go to Canvas- Section III and you will print off the forms and complete by Nov 14.

Welcome C&E Students!!! You may sit with your group mates Turn in your amendments project on the back white table Roll Call Question: What are you doing over Spring Break? Bell Work: What are the factors of production? How is a trade-off different from an opportunity cost? What is consumer sovereignty?

Bell Work Answers LAND, LABOR, CAPITAL, ENTREPRENEUSRSHIP Trade-off: decision making – the process of giving up one desire in order to satisfy another Opportunity Cost: the value of whatever you gave up in the trade-off Consumers determining what gets produced

Shark Tank The prize for the winning team: Use your notes for an upcoming quiz! I will present your posters to the C&E team and they will choose the product they would most likely invest in

Be the Boss Come up with your own business. Come up with a name, logo & explanation of the business/product Explain the factors of production that are used in the development of your business/product. Describe the goods or services you are providing. Come up with two trade-offs to consider in the running of your business/product. What is(are) the opportunity cost(s) of your business/product?

Shark Tank

Team Evaluations You will be grading your teammates on a scale between 1-5 depending on the number of team members you have Assign the highest number to the teammate (or yourself) who you believe did the best with this assignment Assign the lowest number to the teammate (or yourself) who perhaps did not contribute as much or anything to the team Assign remaining numbers to remaining members based on performance

Consumer Sovereignty Reading Read the following article regarding consumer sovereignty Complete the questions Be prepared to share

Refresher Let’s review what we covered before break. Needs v. Wants Scarcity Trade-Offs Opportunity Costs Immediate Gratification Factors of Production (Complete the Name That Factor of Production Handout)

How Good Are You At Saving?!? Complete the savings inventory to understand more about your saving habits Are they good? Or do you need to work on them a little more?

Evaluate the costs and benefits of budgeting

How do Education and Career Choice impact life?

Level of Education and Income Look over your “Level of Education & Income” handout from today After examining the data answer the accompanying questions

Let’s Take a Look at Salaries

Why Do Some Jobs Pay More???

I. What is a Budget? A. How to spend income v. expenditures (expenses) 1. Income: Amount of money that a person or business makes a. Gross Income: Total amount of money made before deductions b. Net Income: The amount of money left over after expenditures c. Disposable income: what a person has to spend after all the fixed expenses. 2. Expenditures (expenses): Total amount a person or business spends

B. Types of Expenditures 1. Deductions: expenditures before paycheck is received a. Pre-Tax Deductions (1.) Retirement Payments (2.) Life insurance (3.) Social Security (4.) Medicare

2. Taxes Federal Income Tax – paid to the US Gov’t State Income Tax – paid to the State Gov’t

Welcome C&E Students! Grab Today’s handouts and find your new seat! Roll Call Question: Would you rather be completely bald or completely covered in hair? (No wigs & no shaving) Bell Work Create an example of a trade-off and the resulting opportunity cost Explain the difference between Gross and Net Income What are 4 examples of pre-tax deductions?

Warm up Bill Cosby on Budegting https://www.youtube.com/watch?v=hUxttPh7_XQ

Earning Power Take out your handout entitled “College & Career Readiness” Follow the instructions and complete all the questions. Read the article on Why Some Jobs Pay More and answer questions.

C. Types of Bills 1. Mortgage - owning home / Rent – not owning a home What is a foreclosure? 2. Car Payment a. Gas Payments 3. Insurance: company “backing” you up a. Car Insurance: required b. Home/Renters Insurance : recommended

5. Saving: setting $ aside for a later time 6. General Expenses: 4. Phone Bill 5. Saving: setting $ aside for a later time 6. General Expenses: a. Groceries b. Household Items c. Entertainment

Splat!!! Need Gross Income Factors of Production Trade-Off Federal Income Tax Consumer Sovereignty Physical Capital Expenditures Scarcity Labor Land Deductions Mortgage Want Pre-Tax Deductions Opportunity Cost State Income Tax Human Capital Net Income Economics