What is Economics? Mrs. Shattuck

Todays Target Define Economics Define Scarcity Compare wants with needs

Share with your shoulder partner the list you came up with. Do Now: You have 30 seconds to list the first few words that come to mind when your hear the word economics. (AKA.. What do you think we will be learning about this year?) Turn & Talk Share with your shoulder partner the list you came up with. Next As a duo create your own definition of economics based on previous knowledge and write it underneath your Do Now.

Economics is the study of human action as it relates to human choice and the utilization of scarce resources.

How do we use limited resources to satisfy our unlimited wants? (This is the essential question of the study of economics) Unlimited wants Limited resources

SCARCITY: having unlimited wants in a limited world. Economics IS the study of SCARCITY!

You do: Create a visual definition of scarcity. On the bottom describe how your image depicts the meaning of scarcity.

The Science of Decision Making Because of our lack of resources we have to make decisions.. Should I get a job or concentrate on my studies? Should I accept or deny the credit card offer I got in the mail?

Side note about resources: A resource is anything used to make a good or a service. -Examples?- GOOD: Physical Object SERVICE: Useful labor 2 types of people in this world: Producers (those who make the goods/provide the services) & Consumers (those who buy or use the goods/services)

Do Now Use the magazines on your desks to create a visual representation of the differences between wants and needs. You can’t always get what you want, but if you try sometimes you might just find.. You get what you need!! WANTS NEEDS Each group member should cut out two of each. YOU ONLY HAVE 5 minutes!

TINSTAAFL There is no such thing as a free lunch.

2. HOW will be produce it? 3. FOR WHOM do we produce? 3 Economic Questions: What, How, and For Whom 1. WHAT will we produce? (Military equipment or food?) 2. HOW will be produce it? (Should factory owners mass produce? Should the US allow manufacturers to move factories to foreign countries?) 3. FOR WHOM do we produce? (Who gets it? How do they get it?)

Unlimited Wants v. Limited Resources Do Now: Copy this chart on the top half of page 3 WANT RESOURCES NEEDED Method of Distribution Source of consumption Method of Production WANT-Satisfaction If you could pick anything for lunch today what would it be?

Exit Ticket: 1. Define scarcity. 2-4. What are the 3 basic economic questions every society must answer? 5. What does TINSTAAFL stand for?

What do we give up when we make a choice? Opportunity cost Opportunity cost is the value of the next best alternative.

“People are never satisfied” …Or because of scarcity they lack the resources necessary to be satisfied. We are forced to make decisions. Cost/Benefit Analysis Sleeping One Hour Later COST BENEFIT

Opportunity Cost Suppose you are given $100. What three things, each costing about $100, would you like to buy? Arrange them in 1st, and, and 3rd choices. Which items are your opportunity cost?

In (+) and Out (-): 2. Now go through and write a plus or a minus next to the ones you want (-) and the ones you need (+). 1. Make a list of all the things you buy or spend money on on a regular basis. 3. Now add up the price for all of the –’s and calculate how much you spend on those items in one year.

Recap: Describe what you learned about decision making using the following terms. Scarcity Opportunity Cost Cost Benefit Analysis Wants/Needs