Warm Up 1. What are the two types of markets in the Circular flow of economics? What is it called when other countries rely on each other for economic growth? What is the difference between renewable and nonrenewable resources? Opinion: Would you make a good business owner, why or why not? 1.Product markets & Factor Markets 2. Economic Interdependence

Fundamental Questions Economics Standard 12.11.2 LG: I will understand opportunity cost by illustrating a scenario.

I. Classify Economies What goods and services should be produced? How should goods/services be produced? Who will get the goods and services?

Fundamental economic questions Economic Systems Fundamental economic questions Scarcity Answered by Imposes Type of economic system: - Market economy - Command economy - Mixed economy Fundamental economic questions: - What to produce? - How to produce? - For whom to produce?

tractor

tomatoes

corn

Harvest by hand

tractor & corn

Adam Smith

Karl Marx

Stalin

II. Opportunity Costs: what you give up when you make a choice A. Focus on a resource (ex. Time = 2 hours after school), Q: If you spend two hours studying what did you give up? (ex. Watching TV for 2 hours)

couch potato

studying

III. Thinking at the Margin: Analyzing how you use your resources with the idea of adding or subtracting one unit value in the production process (ex., a fast food manager thinks about hiring another worker for the weekend rush) B. How was each unit of the resource used? (ex., If an hour is a unit of resource, Do you study or do you watch TV?)

McDonalds

What is your dream? Directions: Under your warm up write a few sentences about your dream for your future. Think dream college, dream job, dream house, dream car, dream vacations, dream place to live, dream family. The sky is the limit dream big!

American Dream Answer the following question: 1. What is the American Dream? 2. Is it an equal opportunity? 3. Can you achieve it through hard work?