Title of Notes: Cost-Benefit Analysis Bell work (5 minutes) What is the biggest take away from The Story of Stuff? Title of Notes: Cost-Benefit Analysis Don’t forget the date Planner: Cost Benefit Notes

I can define supply and demand and cost-benefit analysis. Learning target I can define supply and demand and cost-benefit analysis. Today I am… learning about how products contribute to decision making. So that I’ll be able to… explain how our consumer choices drive the market and impact the environment. I’ll know I’ve got it when… I can write two sentences explaining what supply/demand and cost-benefit analysis are.

Economics and the Environment Reading Economics and the Environment Pages 37-39 Write down two facts from the reading. Bullet point the facts like below. Fact 1 Fact 2

The story of stuff Reminded us that our products come at a price. Reminded us that economics influences the environment.

Economics The study of how resources are converted into goods and services and how they are distributed and used.

3 types of economies Centrally planned: The government decides what/how things are made and who gets what. Ex: Cuba, North Korea

3 types of economies Free market: Individuals decide what is made, how it is made and who gets what. (Not the govt.) Ex: U.S.

Ex: U.S., China 3 types of economies Mixed economy: Individuals and the government decide what is made, how it is made and who gets what. Ex: U.S., China

Check for understanding – on left hand side of notes A. The store owners control the economy but the government could have a say as well. The government sets production levels, prices, etc. C. The consumers and store owners control the economy. Free market economy Centrally planned economy Mixed economy

Check for understanding A. Individuals control the economy but the government could have a say as well. B. The government sets production levels, prices, etc. C. The consumers and store owners control the economy. Free market economy Centrally planned economy Mixed economy

Supply: The amount of product offered. Important Terms Supply: The amount of product offered. Demand: The amount of product people will buy.

Draw on left hand side next to your cost-benefit analysis notes! Scenarios Draw on left hand side next to your cost-benefit analysis notes!

Cost-benefit analysis A review of what will be sacrificed or gained by an action.

Values not included in the price of goods or services. Non-market values Values not included in the price of goods or services. Aesthetic value 2. Cultural value 3. Scientific value (We may make a different decision if we keep these in mind.)

Market failure Markets do not consider the environment’s positive effects on economies, such as ecosystem services, or when they do not reflect the negative effects of economic activity on the environment or on people such as external costs Example: Climate change is the greatest market failures in human history. Greenhouse gas emissions are a classic external cost. Where everyone on earth subsidizes oil companies and consumers of fossil fuels. Subsidy: a giveaway of cash or public resources that is intended to encourage a particular activity or lower the price of a product.

Cost-benefit analysis Pg. 37 Recycle or throw away? Group work – Left side Cost-Benefit Analysis Cost-benefit analysis Pg. 37 Recycle or throw away? Read through the scenario. Answer questions 1 - 3 1. 2. Costs of recycling or throwing jar away. Benefits of recycling or throwing away jar. 3.

1. Like a company, Maria must consider all the costs and benefits of her actions. 2. Costs of recycling or throwing jar away. Benefits of recycling or throwing away jar. Maria’s time Materials can be reused Wasting water The jar won’t end up in a landfill Energy at recycling plant Mary will save time 3. How much water is needed to clean the jar? How much money is the water worth? How much money is the recycled material worth?

Foldable: Cost/Benefit Story Time: The Three Little Pigs Homework: Pick one of the three little pigs and complete a cost/benefit foldable.