Economics 101: What is it all about?

Making a Living Job Market Job Market Supply & demand for workersSupply & demand for workers Gross vs. Net Pay Gross vs. Net Pay Lifetime Earnings Lifetime Earnings Dropout - $18,900/yearDropout - $18,900/year High School - $25,000/year ($1.2 Million)High School - $25,000/year ($1.2 Million) Bachelor’s - $45,000/year ($2.1 Million)Bachelor’s - $45,000/year ($2.1 Million) Master’s – $2.5 MillionMaster’s – $2.5 Million Professional - $99,000/year ($4.4 Million)Professional - $99,000/year ($4.4 Million)

Going on Vacation Typical 7-Day Walt Disney World vacation (4 ppl): Airfare + Hotel (Disney) = $1050/person Park Hopper Pass + Water Park Option = $1286 (Total) Food = $150/day Total = $6300

Health Care Employee or government provided?Employee or government provided? i.e. Cost of having a baby (Avg. in So Cal):i.e. Cost of having a baby (Avg. in So Cal): Natural delivery w/ hospital stay (3 Days): $30,000 Natural delivery w/ hospital stay (3 Days): $30,000 Prenatal appointments: $5,000 Prenatal appointments: $5,000 Pediatrician visit (1 st Year): $1,000 Pediatrician visit (1 st Year): $1,000 TOTAL = $36,000 TOTAL = $36,000

Your “Dream” Home 4 Bedrooms 4 Bedrooms 2.5 Bathrooms 2.5 Bathrooms 2 Floors 2 Floors 2575 Square Ft Square Ft. $229,000 (in Tennessee) $229,000 (in Tennessee)

Your “Dream” Home (Cont’d) 2 Bedrooms 2 Bedrooms 1 Bathroom 1 Bathroom 900 Square Ft. 900 Square Ft. $400,000 (in California) $400,000 (in California)

The Cost of College Cost of Attending a U.C: Cost of Attending a U.C: Tuition: $8,374Tuition: $8,374 Room and Board: $13,848 (Double room w/ 2 meals per day)Room and Board: $13,848 (Double room w/ 2 meals per day) Books: $1,240Books: $1,240 Personal: $1,266 (Clothes, entertainment, etc.)Personal: $1,266 (Clothes, entertainment, etc.) Transportation: $566 (No car – visiting home during breaks)Transportation: $566 (No car – visiting home during breaks) Total: $25,308Total: $25,308

Monthly Car Payment The economy affects interest rates The economy affects interest rates Interest rates affect your overall monthly car payment Interest rates affect your overall monthly car payment Can determine what you can afford Can determine what you can afford

Immigration California Proposition 187 (1994): California Proposition 187 (1994): Illegal? = NO PUBLIC SERVICES!Illegal? = NO PUBLIC SERVICES! Farming and labor industry Farming and labor industry Tax burden? Tax burden? $2.2 Trillion paid by taxpayers$2.2 Trillion paid by taxpayers $22,449 per person (per year)$22,449 per person (per year) American household’s lifetime tax burden: $1.1 MillionAmerican household’s lifetime tax burden: $1.1 Million

Lottery Desperation Desperation Government Revenue (“Tax on Stupidity”) Government Revenue (“Tax on Stupidity”) Did you know? Did you know? Did you know? Did you know? A lottery ticket is only worth 1/3 of its purchase price. After federal taxes, you only win 1/3 of the total prize money. Odds of winning: If you buy one ticket per week, you would have to play for 269,000 years (quarter-of-a- million years) to win the jackpot once.

Ticket Scalping Pure supply & demand Pure supply & demand UFC Fight - $5000 for a $250 ticket (tickets.com) UFC Fight - $5000 for a $250 ticket (tickets.com) Laker season tickets (courtside) - $39,000 (stubhub.com) Laker season tickets (courtside) - $39,000 (stubhub.com) Oscar de la Hoya vs. Floyd Mayweather - $49,000 for $500 (eBay) Oscar de la Hoya vs. Floyd Mayweather - $49,000 for $500 (eBay)

School Supplies & Materials Lack of government funding Lack of government funding Administrative choices Administrative choices Fish tank vs. books Fish tank vs. books

The Cost of Living The expense of living the California Dream The expense of living the California Dream Comparable living Comparable living Priorities of people… What’s most important? Priorities of people… What’s most important?

Wal-Mart Jobs Jobs 1.5 million employees1.5 million employees Sales Tax Sales Tax How often do you go?How often do you go? 138 million customers per week138 million customers per week

The Basics of Economics Choices Choices Decision making Decision making Efficient use of resources Efficient use of resources Making the world a better place Making the world a better place Improving the quality of life Improving the quality of life

The Never-Ending Struggle Unlimited Wants vs. Limited Resources Unlimited Wants vs. Limited Resources Greed and human natureGreed and human nature Decision Making Decision Making Budgeting, choices, benefit vs. costBudgeting, choices, benefit vs. cost Opportunity Cost Opportunity Cost Opportunity Cost Opportunity Cost The trade-offsThe trade-offs