DO NOW. - Pick up a paper from the shelf by the door DO NOW!- Pick up a paper from the shelf by the door. Answer the question below on the blank side of the sheet. How does this picture reflect Economics?- (What do you see? What is happening? How does this represent Economics?)

Absence/Make-up work Being absent does not excuse you from the assignments for the days that you miss. If you are absent for ANY REASON, it is YOUR RESPONSIBILITY to collect your make up work. Pick up your work from the front of class file at the BEGINNING OR END of class. Pick up your work on the DAY THAT YOU RETURN (or it will be late). For each day that you are absent, you have a day to make up your missed work- For example: Absent for 2 days= 2 extra days to make up the work when you return. If you are not sure what to do, ask someone or come to tutoring. I cannot help you during class time as we are working on TODAY’s work!

Example John was absent from period 3, Economics on Monday, 8/29/16 Tuesday, John comes back to class. At the beginning or end of class (before or after bell), John picks up work from file at the front of the class- he finds it in Economics file, 29. John goes to his seat. John completes the work outside of class time or after he has finished today’s work and has extra time. Period 3

Economics is the social science dealing with how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources

Kidney Shortage

How does this apply to us? Complete the Personal Finance Activity- What to Spend Money On

For your assigned product, list every resource that could have gone into making that product (Example of a Pen: Plastic, ink, metal, rubber). DO NOT JUST LIST THE MATERIALS. Think about what else you would need (other than materials) to make the product.

Resources a.k.a. The Factors of Production Economists classify resources into 4 categories Land Natural resources The payment for Land is RENT Labor Human resources The payment for Labor is WAGES Capital (a product of Investment) Tools, machines, factories The payment for Capital is INTEREST Entrepreneurship The special ability of risk-takers to combine land, labor and capital in new ways in order to make profit The payment for Entrepreneurship is PROFIT

Entrepreneurs

What do these entrepreneurs have in common? (You CANNOT simply say, “they are all rich”. Think about how they achieved success)

http://www. growthink. com/content/educating-great-entrepreneurs# http://www.growthink.com/content/educating-great-entrepreneurs#.VBmWz_ldUnU

DO NOW-(In space at bottom of sheet) You and your brother need new laptops for school, which starts next week. You both researched the models of new laptops and both decide to buy the same model. You go to an electronics warehouse store to buy the laptops. The store advertised a closeout sale on the brand and model of the laptops you and your brother want to buy. When you get to the store, the clerk tells you the specific model of laptop that was on sale has sold out. He shows you and your brother a new model that has more features than the model you wanted, and it is $75 more in price. What options do you and your brother have? Decide what you would do in these circumstances and explain your choice. a. Buy the new model at $75 more in price b. Ask to see another model of laptop that is nearer in price to the model that was on sale c. Decide not to buy a laptop at a store and check into buying a laptop online d. Decide to go to another electronics store e. Ask to see the most inexpensive laptop the store sells

Renewable or Non-renewable? 1. On one side of the piece of paper, make four headings in columns: Capital, Entrepreneur, Land, and Labor. 2. Place each the following items under the correct heading: Delivery Truck Teacher Bill Gates Factory Tree ATM Bushel of corn River Hair Stylist 3. Next to each item, state if it is Renewable (R) or Non-renewable (N) Gold Henry Ford Barrel of oil Doctor Store owner who opens a business Bulldozer Tractor Farmer Factory worker.

Opportunity Cost Once a resource or factor of production has been put to productive use an opportunity cost is incurred. Opportunity cost is the next best alternative use for a resource- it’s what you give up to get something else. Ex. If the 3 cups of flour are used to bake bread, then the opportunity cost is the cake that could also have been baked with the 3 cups of flour. No matter what we do with our time or resources, we always incur opportunity cost. TINSTAAFL.

There is no such thing as a free lunch. TINSTAAFL There is no such thing as a free lunch.

PPC Video

Hours in the Day- DO NOW (in space on back of PPC sheet) 7:00 am -8:00 am Getting Ready and traveling to school 8:00 am - 4:00 pm 8 Hours at School 4:00pm - 11:00 pm 7 hours of your choice 11:00pm -7:00am 8 hours to sleep What else could you spend your time doing instead of: School? Sleeping?

OPPORTUNITY COST The value of the next best alternative. OR What you give up when you make a choice.

OPPORTUNITY COST The opportunity cost of working is the time that can be used to have fun. The opportunity cost of not working is the money you would make.

OPPORTUNITY COST If you get paid $8 an hour, what is the opportunity cost of 1 more hour of hanging out instead of working?

Examples What are the Opportunity Costs of: Buying a House Getting Married Buying New Car Going to College Consider making the students respond to these in groups to check for understanding.

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

TINSTAAFL Illustrated: The PPC

The PPC-a graph showing all of the possible combinations of output for an economy fully employing all of its resources in producing 2 goods. Consumer goods- goods produce for consumers (typical products that citizens buy- shoes, T.Vs, cars Capital Goods- goods that can be used to make other goods- machinery, tractors, industrial tools 1. Draw a PPC like the one above- you may label the axes with any 2 products. 2. On your PPC, mark and label the following events- a) A point that represents efficient production. b) A point that represents inefficient production. c) A point of production that cannot be attained right now. d) Economic growth of your economy or increase in overall production.

The PPC Curve B On the line=efficient Growth Curve A Inside line=inefficient/recession Outside line=unattainable for now -Economic growth happens with increase in resources (more factors of production) or increase in productivity.