Unit One: Learning Objectives: North Clackamas School District Social Studies Priority Standards: Econ 53. Describe characteristics of command, market, traditional, and mixed economies and how they affect jobs and standards of living. Econ 59. Demonstrate the skills and dispositions needed to be a critical consumer of information.

Lesson Three: Daily Learning Target I Can define and explain in writing the following key Economic concepts:  Production Possibilities Curve/Graph  Efficiency  Underutilization

We will be using Cornell Note Taking Format Today! Mr. Kirby’s Class: “The world of overused quotes and clichés! Mr. Kirby’s Class: “The world of overused quotes and clichés! “ There Aint No Such Thing as a Free Lunch!” as a Free Lunch!” Take one step at a time to success in Economics!

Producers have options. Should a farmer grow corn or broccoli? 0

A Production Possibilities Graph  A Production Possibilities Graph shows alternative ways of using a country’s or producer’s resources.  If a farmer uses more of his land to grow corn, he has less land for broccoli.  Every decision has its cost.

What is the cost of producing more automobiles?

Number of cars [Millions] Number of Buses [ millions] D C A E B

Efficiency  An economy is efficient when it uses resources in such a way as to maximize production.  Why is it important to be efficient?

Look at the graph. Where is efficiency occurring?

Underutilization  Underutilization is the opposite of efficiency.  Underutilization occurs when an economy uses fewer resources than it is capable of using.  Why do producers avoid the underutilization of resources?

Look at the graph. Where is underutilization occurring?

The Production Possibilities Frontier  The line on the graph that shows the maximum possible production is called the production possibilities frontier.  At the frontier, efficiency is occurring.  However, new technology can shift the frontier. Think about it!

Look at the graph. Where is the production possibilities frontier?

Don’t Forget Scarcity!  A producer cannot produce everything.  A producer must make choices.  Remember: It’s all about scarcity. Our resources are limited but our wants and desires are unlimited.

It’s all about corn or broccoli. We can’t have it all.

.

in table form graphical form Robots (thousands) Pizzas Pizzas (hundred thousands) Robots10 Robots (in thousands) PIZZA0 PIZZA01234 (hundred thousands)

The ability to produce a larger total output - a rightward shift of the production possibilities curve caused by... Q Q Robots Robots (thousands) Pizzas Pizzas (hundred thousands)

More of either or both is possible. 1. Increase in resources - 2. Better resource quality - 3. Technological advances - Q Q Robots Robots (thousands) Pizzas Pizzas (hundred thousands)

Use the following information to create a PPC for McDonalds during Lunch hour. Biff and Skip, working at maximum efficiency can produce the following two products: Big Macs Plot a point showing Underutilization. 2. Plot a point showing future production possibilities. Large Fries

Problem Solving Activity #3: Create two PPCs 20 Points A. For Under Armor: Football cleats 25/0 Socks 100/0 B.For Starbucks Grande Mocha w/whip 10/0 Black Coffee (house blend) 18/0

Bonus Production Possibility Graph Create a production possibility Graph for two Products of your choosing: 1.Create the chart 2.Include a table of data 3.Put a title on your design

Partner Practice-Econ Book Complete the following with a partner: Answer questions 1-9 on page 20. Turn your answers into me. One paper per group of two.

After you complete the Quiz: “Circular Flow Model of a Market Economy” Poster-Problem Solving activity #4  Create a circular flow model poster using page 40 (figure 2.3)  Draw and Label all flow as seen in figure 2.3  Draw three pictures or icons for: Household, government and firms.  Define the following terms on your chart  Household  Firm  Government  Factor Market  Product Market  Monetary Flow  Physical Flow  Include a title-color and shade poster ? ? ? ? ?

“Circular Flow” Poster Rubric EXCEEDING 5 PROFICIENT 4 PROGRESSING 3.5 EMERGING 3 Excellent- final draft,” quality. Very creative, all components present including colored/shaded pictures (3), detailed information. Flow is correct and definitions detailed and complete. “Futures Possibilities realized!” Good- final draft,” quality. Creative, all components present including colored/shaded pictures (3), detailed information. Flow is correct and definitions complete. “At the Frontier!” Efficiently run business!. Good - final draft quality- all components present including pictures (3),. “JUST THE FACTS MAN! “Barely efficient” Much work to be done to make this business work! O.K.-A draft-all components present including pictures (3), information. “Bare minimum’ “Underutilization” Of talent and production capabilities!