Economics Unit 1

Bell Ringer: 08-14-17 What do you think this class is about?

Monday 08-14-17 Bell Ringer Go over MI answers and what they mean Introduction Discussion: What is Economics? Crash Course Quick Write

What is economics? The social science dealing with how people satisfy unlimited wants in a world of limited resources.

https://www.youtube.com/watch?v=3ez10ADR_gM

Quickwrite: Define Economics in a complete sentence. List three things you got from the video.

Tuesday 8-15-17 Bell Ringer: What did you learn from yesterday’s class?

Bell Ringer Share bell ringers Basic economic vocabulary

Scarcity A fact of life. While people’s desire for goods and services is unlimited, the resources to produce them are limited. Would you like to live in a $3 million house? Would you like to own a Lamborghini? Would you like to go to Turks and Caicos? Nearly all resources are scarce, meaning there is a limited supply available to meet unlimited wants. We want all of these things, but can’t because our resources are limited.

Needs and wants A need is something basic for survival. A want is something we would like to have but could survive without. I want you to take 2 minutes and think of as many wants and needs as you can and put them into columns of needs and wants.

Goods and services A good is something that you use that satisfies a want. You can see, feel and touch it. Ex) chair, clothes, a farmer A service is work that is performed for somebody. Not physical Ex) movies, concerts, internet connections, guitar lessons A renewable good is something that can be used indefinitely if used correctly. Ex) timber, fish, livestock, forest, rivers An exhaustible good is something that does not renew itself. Ex) coal, oil, helium ALL economic activity involves either a good or a service.

Posters (group work) Make a poster and label it goods, wants, renewable, and exhaustible goods Label each term with a definition Draw and color a picture to show each Make it pretty!

Wednesday 8-16-17 Bell ringer Factors of production

Bell ringer What is the difference between a renewable good and an exhaustible good?

4 factors of production Land Labor Capital Entrepreneurs

land Natural resources: “gifts of nature” Forests Minerals Oil reserves Bodies of water Even animals

capital All human creations Factories Tools Trucks Machines Computers Buildings Airports Hwys

Labor (human resources) The physical and mental effort used to produce goods and services Cab driver Brain surgeon

Entrepreneurs Tries to earn a profit by developing a new product or finding a better way to produce an existing one. Takes a risk Earns a profit (money left over from selling a good or service after the cost of buying productive resources have been paid.) Must minimize the use of scarce resource in production and maximize the productivity of the factors used in production to keep cost as low as possible.

Poster Make a poster and label it Factors of Production Label each factor of production with a definition Draw and color a picture to show each Make it pretty!

Thursday 8-17-17 Bell ringer TINSTAAFL Economic Theories Rational Self-interest

Bell ringer What do you think TINSTAAFL means?

“there is no such thing as a free lunch” https://www.youtube.com/watch?v=ie1XGTYueHw

TINSTAAFL All goods involve a cost to someone. What was the cost of the new Armani suit that Jerry received? That’s right, a couple of meals……it wasn’t free, was it? Just like the napkins at a restaurant, they seem free, but they actually cost a lot of money for that restaurant.

Economic theory A theory that only captures the important information not the details. Think of some products that are endorsed by famous people. Ex) Shaq and icy hot, LeBron and Jordan's, KD and his shoes Why are manufacturers willing to pay these people millions of dollars to wear shoes, drive cars and appear in advertisements? Firms or businesses believe that it will increase their sales because consumers see these famous people wearing their product and consumers will make a connection with the famous person.

Rational self-interest You try to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit. Meaning you want the maximum benefit at minimum cost to you. If a friend wants you to drive them to the airport you are more than likely to say yes if it is in the afternoon than at 5am, right? I want you to write me a paragraph and tell me how you choosing to volunteer your time tutoring young students fits in with the concept of rational self-interest.

Theories When do you study? How long do you study? Where do you study? Do you study alone, with a partner, or in a group? Do you do anything else when you study? Think of these questions. Are you successful in studying the way that you do? I have always done great on tests when I study in a group. That way I can bounce ideas off of my classmates and hear information maybe in a better way than what my teacher said it. Let me know how you answer these questions.

Marginal: Additional, incremental, extra, or one more Microeconomics: focusing on businesses and individuals, not the economy as a whole.

Friday 8-18-17 Bell ringer Market participants

Bell ringer Who participates in markets?

Market participants Households Firms or businesses Product markets Resource markets

Households Play a leading role in the economy. As consumers, households demand the goods and services produced. As resource owners, households supply the resources used to produce goods and services. Supply human resources, natural resources, and capital goods to businesses through resource markets.

Markets Are the means by which buyers and sellers carry out exchange. Can be physical places (supermarkets, dept. stores, or shopping malls) Goods and services are bought and sold in product markets. Resources are bought and sold in resource markets. Most economists believe the most important resource market is the labor or job market.

Circular flow model Describes the flow of resources, products, income, and revenue among decision makers.

Circular flow model https://www.youtube.com/watch?v=2wM0jHL6TQs

How do markets and households and firms interact? Draw me a picture labeling how it works

Opportunity cost- the next best thing when making a decision People always do what they do because they had nothing better else to do. Opportunity cost video with Mr. Clifford https://www.youtube.com/watch?v=O6XL__2CDPU Because resources are scarce, the choice to use a resource in one way means not using it in another.

Monday 8-21-17 Bell ringer Scarcity activity

Bell ringer Write the factors of production with examples.

Scarcity activity Given $10 million Make a list of what you would buy and the estimated cost of each item. $10,000 Go through your list and put a line through what you will NO longer be buying.