Econ 120 Econ 120 Unit 1 Intro. To Economics Lesson 1

How much do you know???? “Pop Quiz” On a blank piece of paper, do the following: Put your name on the sheet (top right). Put your name on the sheet (top right). Explain why you are taking this course. Explain why you are taking this course. Define Economics. Define Economics. Pass it in. Pass it in.

Common Questions about Economics Why are the Canadian and American dollars different values? Why are the Canadian and American dollars different values? Why do athletes make more than Prime Ministers? Why do athletes make more than Prime Ministers? Why are most sports stadiums roughly the same size in each sport? Why are most sports stadiums roughly the same size in each sport? Why do they sell a limited amount of Sidney Crosby player cards? Why do they sell a limited amount of Sidney Crosby player cards? Should medical care be free in Canada? Should medical care be free in Canada? Why are many Engineering jobs available? Why are many Engineering jobs available?

More Commonly asked questions… Should Canada be more active in pollution control efforts? Should Canada be more active in pollution control efforts? Should Canada eliminate “Clearcutting” in the logging industry? Should Canada eliminate “Clearcutting” in the logging industry? Why are oil prices so high and why do all gas stations charge the same price? Why are oil prices so high and why do all gas stations charge the same price? Why are there differences between wages paid to men and women for the same work? Why are there differences between wages paid to men and women for the same work? Why is the unemployment rate in the Atlantic Provinces so much higher than in the rest of the country? Why is the unemployment rate in the Atlantic Provinces so much higher than in the rest of the country?

Activity 1: Good news An Announcement: To: Members of Economics class Fr: Mr. Pottle The late Marie Duval, the millionaire entrepreneur, left a large sum of money for educational purposes. By one of the terms of her will, a prize is to be awarded to the class in this school that has the smartest and best looking teacher.

CONGRATULATIONS After very little consideration, the unanimous choice was Mr Leach’s Econ120 class Enjoy the prize……… Five bottles of SPARKLE!!!!!!!

The class has a problem. More than 5 people would like a bottle of the new drink and yet there are only 5 bottles of it. In a group of 3-4 people:  identify 5 ways to solve this dilemma.  Evaluate each of the possible solutions.  Decide which way solves the problem best. Why was this the best?

Wants Scenerio Used Car Saleperson: “Hello, how may I help you? A recent model Chev? Volks? Honda? Fiat? Ford? Cadillac? Camaro? Toyota? Plymouth?” Customer: “Yes, one of each.” Rarely is this the response, as many of us do not have the financial resources to equal our wants.

2 Types of wants: Physical wants (needs) – wants or needs that are necessary to sustain human life. Physical wants (needs) – wants or needs that are necessary to sustain human life. Ex. Air, water, food, clothing and shelter… Psychological wants – are wants for those things that are not essential to sustain life. Psychological wants – are wants for those things that are not essential to sustain life. Ex. Big screen TV, exotic food, Name brand clothing….

Scarcity There are not enough resources to satisfy all of society’s wants and needs, thus choices must be made. There are not enough resources to satisfy all of society’s wants and needs, thus choices must be made. “an insufficient amount or supply” “an insufficient amount or supply” Ex: Farmers restricted by the amount of land. Stadium have limited number of seats. Stores have limited space.

is the study of how we make decisions regarding the use of our scarce resources.

The study of Economics is often sub- divided into two major sections: 1. Microeconomics: the study of economic actions of individuals and groups of individuals, such as consumers, households and businesses. 2. Macroeconomics: the study of the economy as a whole, studying such topics as government, employment and prices.

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