1. Be prepared to take plenty of notes.

2. Have ready: All Chapter 18 Notes Textbook open to Ch 18 Pencil & Paper

3. UNLIMITED WANTS scarcity LIMITED RESOURCES Choices All Societies Face WHAT to produce HOW To produce FOR WHOM To produce

4.  Wants Wants  Needs Needs  Capitalism Capitalism  Price System Price System  Microeconomics Microeconomics  Macroeconomics Macroeconomics  Resources Resources  Economic System Economic System  Free enterprise Free enterprise  Scarcity Scarcity  Trade Off Trade Off  Opportunity Cost Opportunity Cost  Marginal Cost Marginal Cost  Marginal Benefit Marginal Benefit Questions

5.  Requirements for survival such as:  Food  Clothing  Shelter  Transportation Vocabulary

6.  The way most goods and services are distributed in the United States Vocabulary

7.  A system in which private citizens own much, if not all of, the means of production and decide how to use them within legislative limits.  A system in which the citizens control the factors of production Vocabulary

8.  Economic behavior and decision- making by individuals and small businesses. Vocabulary

9.  Economic behavior and decision- making by large units such as governments or whole industries or societies. Vocabulary

10.  Anything we would like to have such as:  Entertainment  Vacations  An item that makes life comfortable  Wants are influenced by the societies in which we live and their cultures  wants are different  wants change  wants can only be satisfied for a short time Vocabulary

11.  Things used for making goods and providing services. Vocabulary

12.  A nation’s way of producing things it’s people want and need. Vocabulary

13.  Economic systems in which individuals and businesses are allowed to compete for profit with a minimum of government interference. Vocabulary

14.  Not having enough resources to produce all of the things we would like to have. Vocabulary

15.  Alternative you face if you decide to do one thing rather than another.  Choices all societies make in the face of limited resources. Vocabulary

16.  The cost of the next best use of your time or money when you choose to do one thing rather than the other. Vocabulary

17.  The additional cost of producing one additional unit of output. Vocabulary

18.  The additional satisfaction or benefit received when one more unit is produced or purchased. Vocabulary

19.  What is economics? What is economics?  What is an example of a need? What is an example of a need?  What is an example of microeconomics? What is an example of microeconomics?  What is an example of a resource? What is an example of a resource?  What forces people to make economic choices? What forces people to make economic choices?  What is an example of what to produce? What is an example of what to produce?  What is an example of a marginal cost? What is an example of a marginal cost?  What is an example of a want? What is an example of a want?

20.  The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants. Questions

21.  Food  Strawberries, potatoes, pizza, etc.  Clothes  Shoes, sweaters, jeans, shirts, socks etc.  Transportation  Cars, bikes, bus & train tickets etc.  Shelter  House, apartment, condo,  NOT NEEDED!  Restaurant food  Fast food  Jewelry  Watches  Skateboard  Scooters  Hot air balloon  Skates  El Canto del Amor  Vacation home Questions

22.  Small businesses  House hold budget  Factory  Individual income  Auto shop  Lemonade stands  NOT MICROECONOMICS!  Society  Government  Army  Industry Questions

23.  Scarcity of resources Questions

24.  Gas  Oil  Petroleum products  Air  Water  Soil  Minerals  Labor  Wood  NOT RESOURCES!  Vegetables  Coke cans  Deck  House  Fence  Pets Questions

25.  Computers  Pencils  Roads  Schools  Houses  Cars  Textbooks  New manufacturing technology  NOT EXAMPLES OF WHAT TO PRODUCE!  Rules and regulations  Principles  Hiring new workers  Students Questions

26.  Taco Bell spent $100 making 1000 tacos  How much did one taco cost to make?  The marginal cost of one taco = 10 ¢ Questions

27.  Phones  Restaurant food  Fast food  Jewelry  Watches  Skateboard  Scooters  Hot air balloon  Skates  Love shack  Vacation home  THINGS WE NEED!  Food  Clothing  Shelter  Transportation Questions

28. Microeconomics looks at decision making of small units rather than of large ones.

29. Average Cost = Total Cost / Total Produced Average Cost = $10,000 / 2,000 Average Cost = $5

30. A. macroeconomics B. the total cost C. a trade-off D. scarcity

31. A. The sum of fixed costs and variable costs B. Wages and raw materials C. The cost of producing one additional unit D. Mortgage payments

32. A. there are no costs. B. there are no benefits. C. the benefits outweigh the costs. D. the costs outweigh the benefits.

33.  Capitalism  Free enterprise

34. A. microeconomics. B. scarcity. C. price systems. D. capitalism.

35. A. Marginal costs and marginal benefits. B. Marginal costs and total costs. C. Total costs and revenue. D. Total revenue and marginal benefits.

36. A. marginal benefit. B. marginal revenue. C. total revenue D. average total cost.

37. A. variable cost. B. marginal cost. C. opportunity cost. D. total cost.

38.  What to produce?  How to produce?  For whom to produce?

39.  Rational decision making  Or when making a decision

40. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 $ 100 $ 0 $ 50 Marginal Cost per item Marginal Revenue per item The more there is the less the value is per item.