Welcome to Economics Mr. Potter and Mr. Daugherty First, Second, Third, Fourth, and Seventh Periods

Economics August 3, Why is it necessary to take a course in economics? 2.What exactly is economics the study of? 3.What are some of the reasons people trade? 4.What are some of the reasons people work? Why do people make products? Why do some people in business take risks? Why do you come to school? 5.Can you satisfy all your wants? 6.List four companies that sell products in the US.

Economic Theme #1 Gain from Trade Parties trade voluntarily when they expect to gain. People trade because they need one item and another person or country can provide this item.

Economic Theme #1 Examples Clothing from China. Oil from Saudi Arabia. Cars from Japan.

Economic Theme #2 Incentives Parties respond predictably to positive and negative incentives. An expectation that encourages people to behave a certain way. Hope of reward or a fear of punishment

Economic Theme #2 Examples Incentive of good deals will make a consumer buy more. Incentive of profit so you take a risk to start a business. Incentive of a good job so you stay in school. Incentive of a new car so you save money.

Economic Theme #3 Interdependency A decision make by one party has intended and unintended consequences on other parties. When events in one country’s economy influence other economies as well.

Economic Theme #3 Examples Drought in Costa Rica hurts coffee bean crop. Major hurricane in the Gulf of Mexico damages oil refineries. Disease destroys chicken crop, egg prices rise.

Economic Theme #4 Scarcity Scarcity of all resources forces parties to make choices and that these choices always incur a cost. Limited quantities of resources to meet unlimited wants.

Economic Theme #4 Examples The list is endless!!! Not the same thing as a shortage. Land might not be considered a scarce resource.

Stock Market Game List five companies that sell products in the United States.

Ticket Out the Door 1.What is economics the study of? 2.What will people do when they expect to gain something? 3.When Hurricane Katrina damaged oil refineries, this was an example of which theme? 4.Saving money to buy a nice car is an example of which economic theme? 5.List three companies you might purchase stock in when we play the stock market game.