Chapter 2 Section 1

  Talk with a partner:  Currently you have hundreds of options available to you in regard to cereal or breakfast food.  Imagine is the government one day decided to destroy those choices and gave you only two:  Cheerios and Special K  How would this affect you?  What would you do in response?  How would this affect the world around us?  Why do we feel this way? Think about this!

  What should we produce?  How should we produce them?  Who should get these goods? 3 Economic Questions

  Depends on the type of economy.  Production Possibilities Curve  Guns or Butter  Scarcity means, every decision comes with a cost.  What new technologies did you come up with? What should we produce?

  What fuel should we use to generate electricity?  Is education better in public or private schools?  Should we outsource or build here? How should we produce it?

  Efficiency  Morality  Difference of Opinion How should we produce it?

  Who gets to drive the luxury car?  Who has to take the bus?  Who gets to go to college? Who consumes these goods/services?

  Income Distribution  Factor Payments – Money people get for their sold work or resources.  How do these differ?  Is this fair?  Profit  Money earned after you factor in costs.  The reward for taking a risk.  How much should CEOs make? Who consumes these goods/services?

  Efficiency  Freedom  Security  Equity  Growth  Conflicts between these goals. Economic Goals and Values

  Because societies answer these questions differently, based on their economic goals and values, multiple economic systems have emerged.  These systems provide basic methods to make choices based on limited resources. 3 Questions

  Is too much choice a bad thing? Paradox of Choice