1. WARM UP: SHORTAGE VS SCARCITY Which of the following is an example of shortage? Which of the following is an example of scarcity? Newly-discovered Beatles recordings are released on ebay for sale. Recordings are expected to bring up to $1.5 million each. During the holiday season, Microsoft does not make enough xboxes, and hundreds of teenagers have their hearts broken

2. SCARCITY V SHORTAGE Scarcity: permanent. Can’t just make more Shortage: temporary. It is possible to make more. Also, determined by price. Newly-discovered Beatles recordings are released on ebay for sale. Recordings are expected to bring up to $1.5 million each. During the holiday season, Microsoft does not make enough xboxes, and hundreds of teenagers have their hearts broken

3. 8/24/14 Agenda Warmup: shortage v Scarcity Circular flow of the Economy group work Share out Create your own circular flow of the economy Objectives distinguish between a shortage and a scarcity define individual parts of the circular flow of the economy and create their own example of a CFE

4. ___________ markets $$$

5. ___________ markets $$$

6. CFE TERMS (YES, USE EACH ONE ONCE) Product markets Factors markets Households (Individuals, Consumers) Firms (Businesses, Producers) Goods & Services Factors of Production $$$

7. CFE TERMS (YES, USE EACH ONE ONCE) Product markets Factors markets Households (Individuals, Consumers) Firms (Businesses, Producers) Goods & Services Factors of Production $$$

8. Product markets Factor markets Firms (producers, businesses) Households (individuals, consumers) Goods and services Factors of Production $ Consumer Spending $ Payments for factors $ Profit (gross and net) $ Income from Sale of factors (gross and net) Land, labor, capital, entrepreneurship

9. 1. THE CIRCULAR FLOW OF THE ECONOMY: COPY THE CHART BELOW ONTO BINDER PAPER. AS YOU REVIEW PGS. 43-44 PLACE THE TERMS ON THE NEXT SLIDE IN THE APPROPRIATE PLACE.

10. CFE TERMS Goods and services markets Factor of production Markets Homes (Individuals, Consumers) Companies (Businesses, Producers) Goods & Services Factors of Production Income Profit Payments Spending

11. 2. LABEL THE ARROWS AS YOU SEE BELOW ON YOUR CHART. REMEMBER: THE TOP ½ AND BOTTOM ½ ARE SEPARATELY ONE TRANSACTION.

12. Keep all small pieces of paper on your two desks, between you and your seat partner (don’t lose any) Raise your hand when you have completed the puzzle. Put all sheet together again with the paper clip please. CFE PUZZLE – PUT ALL CFE WORK AWAY

13. ASK: IS IT THE FLOW OF… Money? FOPs? OR Goods and Services?

14. Identify which quadrant of the CFE matches the transaction described in the statements below. Consider only the first transaction — NOT the return flow. Use one of the following: F, H, PM or FM 1.David buys a CD at the local store for $9.99. 2.Emily earns $6.50 per hour entering data at the music conservatory. 3.A Better Blend coffee shop makes $15,000 in profits. 4.Keisha makes decorative pillows that she sells for $30.00. 5.Mammoth Toys Inc. hires 100 new employees.

15. Write T if the statement is true and F if the statement is false. 6. The factor/resource market determines the price per acre of farmland. 7. The product market determines the price of a computer. 8. Firms sell resources in the factor/resource markets. 9. The factor/resource market determines the price of soda. 10. The factor/resource market determines the price of soda-bottling equipment.

16. 1. David buys a CD at the local store for $9.99. H to PM 2. Emily earns $6.50 per hour entering data at the music conservatory. FM to H 3. A Better Blend coffee shop makes $15,000 in profits. PM to F 4. Keisha makes decorative pillows that she sells for $30.00. F to PM 5. Mammoth Toys Inc. hires 100 new employees. FM to F

17. 6. The factor/resource market determines the price per acre of farmland. True 7. The product market determines the price of a computer. True 8. Firms sell resources in the factor/resource markets. False- in the CFE model, firms purchase FOP in the factor markets. 9. The factor/resource market determines the price of soda. False - the product market determines the price of soda. 10. The factor/resource market determines the price of soda-bottling equipment. True

18. INCREASED WEALTH THROUGH SPECIALIZATION – FARM FAMILY PRODUCTION You are in a group for this activity. You will participate in both an activity and then a follow-up debrief discussion. Please choose a partner within your group who will be your personal peer reviewer for Civic Participation – you are being formally assessed today. They will complete their peer review based on the Civic Participation skills rubric (blue) and with specific focus on the following: A: ADVANCED  initiates effectively  participates effectively  propels conversations by posing or responding to questions C: BASIC  participates in activity  participates in discussion

19. Scarcity, of the FOP, (namely LLC and E, C being both F and P) makes a necessity of the CFE Can you figure out the acronyms and letters?

20. FOP = Factors of Production LLC and E = Land, Labor, Capital and Entrepreneurship Both F and P = both Financial and Physical CFE = Circular Flow of the Economy

21. Family Farm Activity Things to Consider Have your text book, collaboration rubric, unit packet and content rubric out. Strategy should be logical I can’t give away any ideas Expectations will vary from group to group There are two parts to the simulation Mrs. B is the “Quality Controller” Write your debrief answers after each round on ONE sheet for your entire “family”

22. Friday 8/30/13 1.Get out: Content Rubric Packet Unit 1 packet 2 sheets of binder paper Pencil and 2 highlighters

23. ItemRound 1Round 2 Corn Pigs Wheat Milk Chickens Apples Cows Firewood TOTAL: Round 1: Create this on the sheet of paper for your group. Cows and milk are two different products

24. ItemRound 1Round 2 (after specialization and trade) Corn Pigs Wheat Milk Chickens Apples Cows Firewood TOTAL: Round 2: Let’s see if there is a difference. What is the relationship between specialization, trade and wealth?

25. INCREASED WEALTH THROUGH SPECIALIZATION – FARM FAMILY PRODUCTION PEER REVIEW OF CIVIC PARTICIPATION: - Get out a ½ sheet of paper and your blue civic participation rubric. - Write P.R. “your name” of “your partner’s name” at the top along with date and period. - Based on the specific rubric below, review your partner’s civic participation. Write their score and then 1-2 sentences explaining the score. - Write 1-2 sentences of comments based on the questions found at the bottom of the blue rubric. A: ADVANCED  initiates effectively  participates effectively  propels conversations by posing or responding to questions C: BASIC  participates in activity  participates in discussion F: FAR BELOW BASIC  little to no participation in activity  little to no participation in discussion

26. UNIT 1 PACKET, PG. 1 Scoring Rubric for EUQ #2 In a market economy, how does the circular flow of the economy address scarcity? ADVANCED All of the Proficient criteria PLUS: □ identifies the role of trade in addressing scarcity PROFICIENT □ demonstrates how scarcity forces choices □ using the terms factor markets, product markets, households and businesses, explains the allocation of resources in addressing scarcity 1.You may use any text notes and the Unit 1 packet to help you write (no text book) 2.Optional: use pg. 1 of the packet to help you brainstorm 3.This will be peer edited at the end of class and is a formal “Preparation” score. 4.Length will most likely be about two paragraphs.

27. Scoring Rubric for EUQ #2 In a market economy, how does the circular flow of the economy address scarcity? ADVANCED All of the Proficient criteria PLUS: □ identifies the role of trade in addressing scarcity PROFICIENT □ demonstrates how scarcity forces choices □ using the terms factor markets, product markets, households and businesses, explains the allocation of resources in addressing scarcity Peer Editors: Highlight the areas in one color that address the proficient criteria. Highlight the areas in another color that address the advanced criteria.

28. In a market economy how does the circular flow of the economy address scarcity? Because our wants for goods and services are unlimited, but our resources for producing those goods and services are limited, we need to use our scarce resources efficiently. The circular flow of the economy addresses scarcity by constructing a very effective system for allocating resources between households and businesses. This allocation occurs through the interaction of individuals and firms in product and factor markets. Through trade, households and businesses exchange what they have in surplus (often gained through the efficiency of specialization) and trade for the resources that they need. Combined together, these interactions determine what goods and services will be produced, how, and for whom. Peer Editors: Use this example response to ensure you are scoring your partner’s response accurately. Finally, Write the score they earned and write your full name.

29. Unit 1: FOPs and CFE CFA – Acronyms Galore!

31. CorrectGrade 5A+, Advanced + 4B, Proficient 3C, Basic 2D, Below Basic 1F, Far Below Basic Now, on the back of your assessment, discuss with your seat partner the ones you got wrong and write why for the correct answer.

32. Please get out the following: 1. Pencil Happy Tuesday! 9/3/13

33. Get out your yellow Content Rubric packet and answer the first essential question in the blank space provided on the right. If you need more space, turn to the back. This is a starter sentence frame for help.