1. Would you rather… Do homework? Attend Government class? SLEEP? Go to work? Watch TV? Hang out with friends? Play video games? Go hiking? Skateboard?

2. AGENDA January 6, 2014 Today’s topics  Basic Economic Principles Administrative  The Road Ahead…  After school study & review sessions  Ch. 16 Reading + Glossary quiz  Unit 4 Guide due  Portfolio EXTRA CREDIT option  Return miscellaneous papers Homework  None

3. The Road Ahead… Upcoming Dates… January 7/8/9After school study & review sessions January 9/10Ch. 16 Reading + Glossary quiz January 14/16After school study & review sessions January 16/17Unit 4 Guide due January 17Portfolio EXTRA CREDIT option due

4. Portfolios Portfolios due with FINAL EXAM  Portfolio checklist available by January 13  Portfolios due at the beginning of FINAL EXAM period Portfolios turned in late will lose 5 points/day  EXTRA CREDIT: Two bonus STAMPS if you turn in a photocopy of your Portfolio work by 3:00 pm Fri., Jan. 17 DoDon’t Have everything in place BEFORE the due date Wait to assemble your Portfolio until the due date Have everything 3-hole punched BEFORE the due date Plan to use the 3-hole punch on the due date

5. Learning Goals Unit 4 Guide How should the government spend taxpayers’ money? How is the federal budget an example of compromise?

6. Basic Economic Principles The Economy: The activities concerned with the production, distribution, and consumption of goods and services in a society Economics: The study of how people—individually and in groups—choose to use their limited resources to satisfy their unlimited wants

7. Principle #1: Scarcity Forces Trade-Offs Description: Limited resources require people to trade one goal for another Scarcity: The limited nature of society’s resources

8. Principle #2: The Cost of Something is What You Give Up to Get It Description: People choose something when the benefits are greater than the costs vs. Opportunity cost: Whatever must be given up in order to obtain something

9. Principle #3: People Respond to Incentives Description: People are influenced by costs and benefits Incentive: Something that induces a person to act

10. So many things to do, so little time… Hang out with friends – 2 hours Go skateboarding – 1 hour Sleep – 8 hours Go to work – 4 hours Watch TV – 2 hours Play video game – 2 hours Do homework – 2 hours Go hiking – 1 hour Sleep – 4 hours Attend Government class – 1.4 hours Take a nap – 2 hours Eat breakfast – 30 minutes Eat lunch – 30 minutes Study – 1 hour Attend school – 7 hours Listen to music – 1 hour IM /chat with friends – 1 hour

11. Principle #4: Trade Can Make Everyone Better Off Description: By focusing on what we do well and then trading with others, we will end up with more and better choices than by trying to do everything ourselves.

12. Principle #5: Markets Coordinate Trade Description: Markets are an efficient way to coordinate exchanges between buyers and sellers.

13. Homework Before you leave  Pick up your belongings  Straighten up your area Homework  None Reminders:  January 7/8/9 After school study & review sessions  January 9/10 Ch. 16 Reading + Glossary quiz