Warm-Up You are given $10. You have the option of saving it, investing $5 in a lemonade stand, or you can spend $10 on a movie. What will you do? If you could get 1 million dollars when you graduate college or 1 billion dollars when you retire, what would you prefer to do?

5.1 Identify the basic principles of econ

Economics 5.1 Intro to Economics

What is Economics?? Economics- the study of how people seek to satisfy needs and wants with limited resources

I. Scarcity and Choice A.Needs and Wants 1.Need- necessary for survival 2.Want- not necessary for survival 3.Consumption- use of economic goods

II. Consumer sovereignty 1.power of consumers to decide what gets produced 2.producers meet demands or go out of business

III.Scarcity A.Scarcity- 1.limited quantity of a resource to meet unlimited wants 2.this is the driving force of economics

Make a list of all the resources needed to make this car into a finished product With that list, tell me whether each is land, labor (blue collar or white collar), capital (human or physical), or entrepreneurship.

IV. Factors of Production- Resources used to make all goods and services A.Land- includes any natural resources B.Labor- is the effort for which someone is paid 1.White collar workers- high skilled office work 2.Blue collar workers- low skill manual labor

C.Capital- any human-made resource to invest to produce goods or services 1.Physical capital- buildings, tools, machines, etc 2.Human capital- knowledge and skills a worker gains through education and experience

D.Entrepreneurs- risk-takers who decide how to combine other factors of production to create new goods and services

V. Goods and Services 1.Goods- physical things 2.Services- actions or activities that one person performs for another

Factors of Production Flow Chart Is it a person? YesNo Labor or entrepreneur? is it man-made Yes –it’s capital No – it’s land/natural resources

Now back to the Aston Martin!

Kahoot? Get your device ready while I pull up Kahoot.

The Onesole Shoe Company ESIU ESIU

“TRADE-OFFS AND COSTS” Ch. 18.2

VI. Trade-offs A.Trade-off- the process of giving up one desire in order to satisfy another desire 1.Ex: video game vs. give girlfriend a present 2.Ex: 2 more hours of sleep vs. going to movie premier

B.Opportunity cost- value of what is given up in a trade-off (the next best alternative) 1.Ex: Dating- cost is not dating some other person 2.Ex: College vs. working- cost is $ of college and amount of $ gained from working

C.Immediate gratification- when you give up something in the long-term to satisfy an immediate want

Read p What two factors are taken into account in a cost-benefit analysis? Looking at the graph on page 508, at what point should the farmer stop farming more acres? 2.Define diminishing marginal benefit. Why does marginal benefit diminish with increases in quantity?

Pizzeria Madness 1.What resources in this activity were plentiful and what were scarce? 2.What was the best strategy to win this activity? 3.Explain how this activity exemplifies the definition of economics.

Warm Up What are the 4 factors or production? What are the 2 types of capital? How NOT to win on Shark Tank: –

Now it’s your turn! You are tasked with creating an advertisement for your product or service. You will create this advertisement with the intention of informing potential buyers of what your product is and why they should buy it.

Be an Entrepreneur Brainstorm With your group come up with a product. This can be a GOOD or SERVICE. Most innovations are an answer to a problem with existing inventions or problems that most people face.

How will I be graded? 1.Design: use the poster space wisely and design in a way that is appealing to the viewer. You must use color and be creative = 20 pts 2.Use one of the following propaganda techniques = 20 points – Glittering Generality – Bandwagon – Stacked Cards – Just Plain Folks – Endorsement – Transfer – Euphemism 3.You must fill out the “Business Plan” (on the back) using complete sentences and answering all of the questions = 20 pts 4.All Group Members MUST have a specific responsibility = 20 points (back side) 5.Presentation = 20 pts

To do: 1.Business plan (questions on back of page) 2.Artists: color and logo designer/drawer 3.Write Propaganda and slogan 4.Create/organize a presentation (like shark tank) Divide the tasks up. You should always be working. – Remember you’re SELLING these products and ideas