DAY 4 Scarcity & Productivity “The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.” ― Thomas SowellThomas Sowell

Agenda: Receive Current Events Assignment/Sign Up for Dates The Economic Way of Thinking (maybe) Tuma and the Earthen Jars of Water Scarcity discussion/notes Trade offs/Opportunity Costs Activity/Notes Current Events

Scarcity Unlimited wants vs. limited resources A measure of supply Ten Hard to Fill Jobs:

Trade-Offs & Opportunity Costs

Should Mr. Garrow go on vacation? Mr. Garrow is considering a trip to the Bahamas. Here are some economic realities he must consider: 1.Roundtrip airfare: $900 2.Car rental: $175 3.Hotel (1 week): $ He would not be able to work that week and would lose $2000 of income. 5.His food expenses do not change – he always eats in restaurants anyway, and his meals usually cost about $300. *Calculate the “cost” of Mr. Garrow’s vacation. Explain why you did or did not include each of the components described above and why.

Trade-Offs and Opportunity Cost Trade Off: Choosing one option over one that is less desirable Opportunity Cost: What you gave up when you made that choice (Cost of Selected Alternative - Cost of Next Best Alternative) What trade-offs have you made? What was the opportunity cost of that decision? Examples? Discuss these with your small group. HW, getting your license, choice of career, college, consumer purchases, stock holders, ??

Opportunity Cost of College Considerations: - Income earned from working those 4 years - Monetary cost of college - Money “saved” by not going to school - Average earnings based on level of education - Values, what you want from your life - Opportunity for advancement What is the cost, in dollars, of NOT going to college. This will be a complicated mathematical exercise.

Current Events Fantasy Football 30/n-fantasy-football-biz- romans.cnnmoney/index.html