Daily Warm up Activity (HOT Section Notes): We have a Free Market Economy in the United States. What are some advantages of this kind of economy? We. However, do not have an unregulated free market system. What restraints/regulations are put in place to regulate trade?

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 Two: Daily Learning Target I Can define and explain in writing the following key Economic concepts: Production Possibilities Graph Efficiency Underutilization

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

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?

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?

Look at this 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.

Questions for Reflection: What does a production possibilities graph show? Define efficiency. Why is it important to be efficient? Define underutilization. What problems are created by underutilization? What is the production possibilities frontier?

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 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

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