Have a book and your cellphone on your desk.

Textbook App Take out your phone Search “Pearson BouncePages” in your app store. Download and open the app.

Textbook APP Turn to page 3 Scan the picture of a video on the page.

Textbook APP Click the logo when you see it…

Textbook APP The video will load on a separate screen. Click play and watch the summary of this chapter.

From the video… What are some economic systems discussed? How does scarcity force us to make economic choices? What is a trade off?

Economics Chapter One

Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. I give you $100 What will you spend it on? What did you give up by not spending it on other things?

Micro vs. Macro

Microeconomics The branch of economics that examines the behavior of individual decision-making units. Looks at Businesses and households What is the person buying? How will that business handle the demand for bottled water?...

Micro Example The global price of ground beef has gone up. How will consumers respond? How will businesses respond?

Macroeconomics Looks at the economic behavior of entire countries. Looks at employment rates, GDP, and output of the entire country. How will the country handle Houston flooding?

Macro Example Using our ground beef scenario… How will the country respond? How will this Affect government policy?

Laptops You will be assigned a laptop. Log in and go to www.wattsburg.org/economics.aspx Click on the article in the middle of the page. Wait for further instructions.

Read and analyze Read the article on the impacts of Oil prices after Hurricane Harvey. On the notecard, write out 3 things mentioned that are on a micro level and 2 things that are on a macro level.

Email me Go to the email that you wish to use for this class. Send me an email from it @ steve.odonnell@wattsburg.org Make your email a proper email.

Steve.odonnell@wattsburg.org Mr. O’Donnell, This is my preferred email address per your request. Thank you, Steven O’Donnell

Putting Computers away Make sure you log off of the machine. Place your computer in the correct “numbered” slot. Plug it in. Please and thank you.

Data shown in three ways Graph Chart Equation

Graphs Gives a visual representation of data.

Charts Equations Q = 100/P Price Quantity $1 100 $5 20 $10 10 $15 6 $20 5 Equations Q = 100/P

Get yourself a text book Get yourself a text book. THEN DISCUSS what you learned from class yesterday.

Quiz Define Economics. Explain the difference between micro and macroeconomics. Give an example of a macro problem caused by Hurricane Harvey. When finished place in the mesh and begin chapter 1 vocab.

Chapter 1 vocabulary Complete the worksheet provided using the chapter one text.

https://www.youtube.com/watch?v=Np-dZSdzymk

Scarcity, Choice and Opportunity Cost https://www.youtube.com/watch?v=Np-dZSdzymk

Scarcity Limited quantities of resources to meet unlimited needs or wants. This is the fundamental economic problem.

“There is no Free lunch”

Resources Time

Opportunity Cost The most desirable trade off in a decision. Trade off -All of the alternatives that we give up whenever we choose one course of action over another. Due to scarcity

While you read… Pick out the four main points of the article. Rank them, then write those on the article.

What was the opportunity cost Nick had a hard time deciding between the Big Mac and the Crispy Chicken sandwich, his two favorites. He chose the chicken because he had more recently had a burger.

What is the opportunity cost? Joe was shopping for a truck. He has looked at similarly priced Ford, Chevrolet, Toyota, and Ram models. After a lot of thought, he narrowed it down to either the Ford or the Chevrolet. He selected the Ford because he liked the interior a little better. What was his opportunity cost?

Guns versus Butter

How can we distinguish between a tradeoff and an opportunity cost?

Cost Benefit Analysis

Venezuela in trouble While you watch consider the following: What is scarce in Venezuela? Why is there scarcity in the country? Which groups of society are impacted by this? What could be done to help them? https://www.youtube.com/watch?v=okwMYI3vXzw

Venezuela’s Scarcity https://www.youtube.com/watch?v=x5nNnI4BLbE

On a sheet of lined paper answer the following in paragraph form. “How do we see scarcity at play in Venezuela’s current state of affairs, which groups of society do we see it and what can be done?”

Let’s look at Scarcity Water Food Oil Consumer’s Attention

Scarcity Within your group answer the following… Write a summary of your topic. How is your resource scarce? How does this impact people? What can we do in the future to balance out the needs/wants for this good and the problem with scarcity?

Do Now: Discuss with a partner What is economics? What is scarcity? What is the difference between a tradeoff and an opportunity cost? What is going on in Venezuela?

Discuss what we have covered up to this point Discuss what we have covered up to this point. Discuss one thing you will miss from High School.

Quiz Define economics? What is scarcity? What is the difference between a tradeoff and an opportunity cost? Where are we seeing scarcity in Venezuela’s economy?

Thinking at the Margin

Thinking at the Margin This is deciding if you should add or subtract one more than what you already have. What is the impact of that decision? Stop where the cost outweighs the benefit.

Marginal Utility – how much extra “satisfaction” you get out of doing or consuming one more of something.

Marginal Cost – how much extra “cost” you incur from consuming or producing one more of something.

Economics of Seinfeld While you watch, write out how we see the concepts of thinking at the margin and the cost-benefit analysis. http://www.dailymotion.com/video/x4nbuhv

Thinking at the Margin To host a baby shower To steal illegal cable To confront the woman about the shirt

Thinking at the Margin Read the article. Explain how thinking at the margin can improve your life.

What do you think of when you hear the word entrepreneur?

Factors of Production

Three Basic Economic Questions What should get produced? How should we produce it? Who should get what is produced? Who answers these questions?

Households Firms

The “Players” Households Firms These are the consumers They own the factors of production. Firms These are the businesses Use resources to produce products

Factors of Production Land – natural resources Labor – Effort put into production Capital – human made resource to create goods. Physical capital – tools, buildings Human Capital – Education, training

Factors of Production Entrepreneurs - Leaders who make decisions on how to best use the factors of production. Take risks

Not all Entrepreneurs are Billionaires… Small business makes up the majority of entrepreneurs. Less than 1% come from wealth. 75% worked at other companies before starting their business. They are persistent!

Create a hypothetical timeline of the creation of the cup from start to finish. From the idea of it to the buyer taking it off the shelf.

Discuss… Who answers the economic questions? How can thinking like an entrepreneur help you have a better life?

Sphere of influence

The Problem Pick the problem you want to focus on.

The Solution Describe your proposed solution. How will your solution be different? How will you get people to “buy” into your solution?

Discuss with a partner What is Scarcity? What are the four factors of production? What does thinking at the margin mean? What is the “entrepreneurial mindset”?

Looking ahead… Your first Level 1 exam will be THIS THURSDAY!!!!! Everything we’ve covered up to this point is fair game. There will be a review on Wednesday.

Create an action plan Inform people about your plan to keep you honest. It needs to be specific. Have time frames to keep you moving. Reward yourself for the little victories. Be Persistent!!!

While you watch write down times that he used the “entrepreneurial mindset” to innovate and ultimately make money. https://www.youtube.com/watch?v=yQAmKsC1BOU

TEST IS THURSDAY

Production Possibility Frontier

Production Possibility Frontier Illustrates how much of something can be produced given the amount of land, labor and capital.

OR

Production Possibility Table Combinations A B C D E F Oil 1 2 3 4 5 Bottles 62 53 45 36 27 18

The PP Curve Usually compares two products.

Inside the line You would be able to produce more of one or both goods given the amount of available resources.

Outside the line This means that the amount of goods cannot be created considering the amount of resources.

Anything outside the line is impossible. Anything on the line is efficient. Anything inside the line is inefficient.

Which point is efficient, inefficient or impossible?

The PP curve illustrates Scarcity Choice Efficiency Opportunity costs

https://www.youtube.com/watch?v=O6XL__2CDPU

A shift in the curve Indicates a growth or decline in the economy. What are some reasons that an economy will grow or shrink?

Econ movies https://www.youtube.com/watch?annotation_id=annotation_4121172551&feature=iv&src_vid=FwPiWz1a1Tw&v=tW4G5IPpzFY

Should you trust this? Why or why not?

News headlines got you down?

Discuss with a partner What is Scarcity? What are the three factors of production? What does thinking at the margin mean? What does the productions possibility curve show us?

Do Now Look over your notes for the exam!