1.  We will…  Role Call and Syllabus review  Economic Activity: Discovering Scarcity  Chapter 1 Notes  You will…  Understand the course and its expectations  Have a better understanding of how scarcity and how it connects to Economics  Understand basic concepts of Economics including scarcity, positive and normative economics and the 7 principle of Economics

2.  1. Get into groups of 2 or 3  You may want to find someone with a knowledge of football (American, not futbol)  2. Come up and grab the worksheet  3. Auction Draft – each group may draft 2 players – each group is limited to $100  Position does not matter – you can draft anyone  Points will be collected each week for your 3 players for a team competition  There are no trades or waiver pick ups so plan carefully http://g.espncdn.com/s/ffldraftkit/13/NFLDK2K13_CS_S tand$.pdf?addata=2013=ffldft_chtsht_standvalues_xxx

3.  1. Get into groups of 3 or 4  2. Scarcity ExerciseScarcity Exercise

4.  1. How did this activity exemplify the economic principle of scarcity?  2. What were some of the thoughts behind choosing a preference?  3. How does scarcity affect your daily life? Think of an example.

5. What you need to remember to be a good student of economics

6.  Economics is…  A Social Science  A study of how resources are used to their fullest potential  NOT directly concerned with money or politics or the stock market  When you are trying to make the most out of what you have you are doing…

7.  What do you think is the difference between the prefixes “macro” and “micro”?  Write in on your note sheet  Compare it to a partner.

8.  Macroeconomics = economic issues of a nation  Microeconomics = economic issues of the individual and/or firm

9.  What is an example of a macroeconomic issue?  What is an example of a microeconomic issue?

10.  Positive Economics  Gives a concrete estimate to an issue  Focuses on facts and cause and effect relationships  Based on scientific method  Normative Economics  Uses value judgments and opinions  Used to find the “best option”

11. Positive Economics Normative Economics

12. 1. PEOPLE CHOOSE  Scarcity forces people to choose 1 option over another  Ex: Sleep or get to school on time 2. PEOPLE’S CHOICES INVOLVE COST  Every choice has a cost and benefit  Ex: Sleep in = more rest, but potential punishment OR No sleep = no punishment

13. 3. LIFE IS LIVED ON A MARGIN  Each additional item added has a marginal cost and a marginal gain – is one more worth it?  Ex: The GUM CHALLENGE 4. PEOPLE RESPOND TO INCENTIVES IN PREDICTABLE WAYS  Incentives always change people’s decisions  Ex: Sales – If two products are available and one is on sale while the other isn’t, people may choose the cheaper one even if it’s a lesser quality

14. 5. PEOPLE GAIN WHEN THEY TRADE VOLUNTARILY  You can’t do everything – you trade 6. MARKETS COORDINATE TRADE  Markets bring people together perfectly without intervention 7. PEOPLE’S CHOICES HAVE CONSEQUENCES IN THE FUTURE  A choice today affects you and others later  Ex: Going to lunch may mean you don’t have enough money for the concert this weekend.

15.  LIST THREE WAYS YOU USE ECONOMICS IN YOUR DAILY LIFE  DEFINE THE TWO FIELDS OF ECONOMICS  WRITE ONE NEWSPAPER HEADLINE WHICH ILLUSTRATES POSITIVE ECONOMICS