1.  QOD #3: Surgeon vs. Teacher  HW Review  Economics is Everywhere  Review Factors of Production  HW: Identify the parts AGENDA Tues 1/17 & Wed 1/18

2. IIf you were a highly skilled trauma surgeon and your brother/sister were a high school teacher, which of you would incur the larger opportunity cost of being drafted into the military? Why? WWhich would be the military’s larger opportunity cost? Why? WWhich would be society’s larger opportunity cost? Why?

3.  You will be examining photographs to identify examples of economic concepts.  We will do one together.  Round 1 you look for three goods & services  Round 2 you look for three factors of production  You will be awarded points based on the items you identify that no other partnership identified.  Round 3 will not apply to all of the photographs.

4. Round 1 you look for 3 goods & services Round 2 you look for 3 factors of production

5.  Look at each of the 8 photographs and identify three goods and services for each.  You have 1 minute to look at each picture.  Next, we will read off those items identified and you will cross it off your list if it is a match.  All items left on your list are worth 1 point.

15.  Identify three factors of production.  For each items you identify as a factor of production, you must also accurately categorize it.  You have 2 minutes for each picture this round.  Next, we will read off those items identified and you will cross it off your list if it is a match.  All items left on your list are worth 2 points.

16.  Using the decision matrix below, identify which photographs best illustrate the three decisions on the matrix.  You must be able to justify your choice using economic reasoning. DecisionCost (in money)Cost (in time)Main benefit A$102 hoursI will have fun. BFree1.5 hoursI will learn something useful. C$1 (gas money)4 hoursI will earn $32.

17.  1.Land- natural resources  2.Labor- physical & mental talents that contribute to the production of goods & services  3.Capital- produced goods used as resources for further production..i.e. tools, computers, machinery  4. Entrepreneurship – special talent for taking advantage of new business opportunities

18.  RENT – for land  WAGES – for labor  INTEREST – for capital  PROFIT – entrepreneurship  missing? borrowed money for investment – payment = INTEREST

19.  A person must pay to use a resource:  Land = Rent  Labor = Wages  Capital = Interest  Entrepreneurship = Profit

20. Find a photograph of someone that shows examples of goods and services and factors of production.  Identify three to five goods or services in the photograph.  Draw a line from each one to a caption that tells why it is a good or a service.  Identify two or three factors of production in the photograph.  Draw a line from each one to a caption that tells how it is an example of land, labor, or capital.  Finally, describe where the person is and why you think he/she is there. Then identify the opportunity cost for being there.

21. Good: Product Telephone Good: Product American Flag Good: Product Picture Frame FoP: Labor Commander in Chief FoP: Land Wool for curtains FoP: Capital Telephone President Kennedy in the Oval Office working on legislation. Opportunity cost: Camp David w/ the kids