Would you rather… Do homework? Attend Government class? SLEEP? Go to work? Watch TV? Hang out with friends? Play video games? Go hiking? Skateboard?

AGENDA January 6, 2014 Today’s topics  Basic Economic Principles Administrative  The Road Ahead…  After school study & review sessions  Ch. 16 Reading + Glossary quiz  Unit 4 Guide due  Portfolio EXTRA CREDIT option  Return miscellaneous papers Homework  None

The Road Ahead… Upcoming Dates… January 7/8/9After school study & review sessions January 9/10Ch. 16 Reading + Glossary quiz January 14/16After school study & review sessions January 16/17Unit 4 Guide due January 17Portfolio EXTRA CREDIT option due

Portfolios Portfolios due with FINAL EXAM  Portfolio checklist available by January 13  Portfolios due at the beginning of FINAL EXAM period Portfolios turned in late will lose 5 points/day  EXTRA CREDIT: Two bonus STAMPS if you turn in a photocopy of your Portfolio work by 3:00 pm Fri., Jan. 17 DoDon’t Have everything in place BEFORE the due date Wait to assemble your Portfolio until the due date Have everything 3-hole punched BEFORE the due date Plan to use the 3-hole punch on the due date

Learning Goals Unit 4 Guide How should the government spend taxpayers’ money? How is the federal budget an example of compromise?

Basic Economic Principles The Economy: The activities concerned with the production, distribution, and consumption of goods and services in a society Economics: The study of how people—individually and in groups—choose to use their limited resources to satisfy their unlimited wants

Principle #1: Scarcity Forces Trade-Offs Description: Limited resources require people to trade one goal for another Scarcity: The limited nature of society’s resources

Principle #2: The Cost of Something is What You Give Up to Get It Description: People choose something when the benefits are greater than the costs vs. Opportunity cost: Whatever must be given up in order to obtain something

Principle #3: People Respond to Incentives Description: People are influenced by costs and benefits Incentive: Something that induces a person to act

So many things to do, so little time… Hang out with friends – 2 hours Go skateboarding – 1 hour Sleep – 8 hours Go to work – 4 hours Watch TV – 2 hours Play video game – 2 hours Do homework – 2 hours Go hiking – 1 hour Sleep – 4 hours Attend Government class – 1.4 hours Take a nap – 2 hours Eat breakfast – 30 minutes Eat lunch – 30 minutes Study – 1 hour Attend school – 7 hours Listen to music – 1 hour IM /chat with friends – 1 hour

Principle #4: Trade Can Make Everyone Better Off Description: By focusing on what we do well and then trading with others, we will end up with more and better choices than by trying to do everything ourselves.

Principle #5: Markets Coordinate Trade Description: Markets are an efficient way to coordinate exchanges between buyers and sellers.

Homework Before you leave  Pick up your belongings  Straighten up your area Homework  None Reminders:  January 7/8/9 After school study & review sessions  January 9/10 Ch. 16 Reading + Glossary quiz