4. Unit One: Learning Objectives: North Clackamas School District Social Studies Priority Standards: Econ 53. Describe characteristics of command, market, traditional, and mixed economies and how they affect jobs and standards of living. Econ 59. Demonstrate the skills and dispositions needed to be a critical consumer of information.

5. Lesson Three: Daily Learning Target I Can define and explain in writing the following key Economic concepts:  Production Possibilities Curve/Graph  Efficiency  Underutilization

6. We will be using Cornell Note Taking Format Today! Mr. Kirby’s Class: “The world of overused quotes and clichés! Mr. Kirby’s Class: “The world of overused quotes and clichés! “ There Aint No Such Thing as a Free Lunch!” as a Free Lunch!” Take one step at a time to success in Economics!

8. Producers have options. Should a farmer grow corn or broccoli? 0

9. A Production Possibilities Graph  A Production Possibilities Graph shows alternative ways of using a country’s or producer’s resources.  If a farmer uses more of his land to grow corn, he has less land for broccoli.  Every decision has its cost.

10. What is the cost of producing more automobiles?

11. 2 4 6 8 1012 14 16 18 202224 26 28 30 32 34 36 38 40 42 Number of cars [Millions] Number of Buses [ millions] 10 9 8 7 6 5 4 3 2 1 0 D C A E B

13. 1 2 3 654321 0

14. Efficiency  An economy is efficient when it uses resources in such a way as to maximize production.  Why is it important to be efficient?

15. Look at the graph. Where is efficiency occurring?

16. Underutilization  Underutilization is the opposite of efficiency.  Underutilization occurs when an economy uses fewer resources than it is capable of using.  Why do producers avoid the underutilization of resources?

17. Look at the graph. Where is underutilization occurring?

18. The Production Possibilities Frontier  The line on the graph that shows the maximum possible production is called the production possibilities frontier.  At the frontier, efficiency is occurring.  However, new technology can shift the frontier. Think about it!

19. Look at the graph. Where is the production possibilities frontier?

20. Don’t Forget Scarcity!  A producer cannot produce everything.  A producer must make choices.  Remember: It’s all about scarcity. Our resources are limited but our wants and desires are unlimited.

21. It’s all about corn or broccoli. We can’t have it all.

22. 100 40 50 20

23. .

24. in table form graphical form Robots (thousands) Pizzas Pizzas (hundred thousands) Robots10 Robots109740 (in thousands) PIZZA0 PIZZA01234 (hundred thousands)

25. The ability to produce a larger total output - a rightward shift of the production possibilities curve caused by... Q Q Robots Robots (thousands) Pizzas Pizzas (hundred thousands) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1 2 3 4 5 6 7 8

26. More of either or both is possible. 1. Increase in resources - 2. Better resource quality - 3. Technological advances - Q Q Robots Robots (thousands) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1 2 3 4 5 6 7 8 Pizzas Pizzas (hundred thousands)

27. Use the following information to create a PPC for McDonalds during Lunch hour. Biff and Skip, working at maximum efficiency can produce the following two products: Big Macs 0 5 10 15 1.Plot a point showing Underutilization. 2. Plot a point showing future production possibilities. Large Fries 25 15 5 0

28. Problem Solving Activity #3: Create two PPCs 20 Points A. For Under Armor: Football cleats 25/0 Socks 100/0 B.For Starbucks Grande Mocha w/whip 10/0 Black Coffee (house blend) 18/0

29. Bonus Production Possibility Graph Create a production possibility Graph for two Products of your choosing: 1.Create the chart 2.Include a table of data 3.Put a title on your design

30. Partner Practice-Econ Book Complete the following with a partner: Answer questions 1-9 on page 20. Turn your answers into me. One paper per group of two.

31. After you complete the Quiz: “Circular Flow Model of a Market Economy” Poster-Problem Solving activity #4  Create a circular flow model poster using page 40 (figure 2.3)  Draw and Label all flow as seen in figure 2.3  Draw three pictures or icons for: Household, government and firms.  Define the following terms on your chart  Household  Firm  Government  Factor Market  Product Market  Monetary Flow  Physical Flow  Include a title-color and shade poster ? ? ? ? ?

32. “Circular Flow” Poster Rubric EXCEEDING 5 PROFICIENT 4 PROGRESSING 3.5 EMERGING 3 Excellent- final draft,” quality. Very creative, all components present including colored/shaded pictures (3), detailed information. Flow is correct and definitions detailed and complete. “Futures Possibilities realized!” Good- final draft,” quality. Creative, all components present including colored/shaded pictures (3), detailed information. Flow is correct and definitions complete. “At the Frontier!” Efficiently run business!. Good - final draft quality- all components present including pictures (3),. “JUST THE FACTS MAN! “Barely efficient” Much work to be done to make this business work! O.K.-A draft-all components present including pictures (3), information. “Bare minimum’ “Underutilization” Of talent and production capabilities!