1. Economics Scarcity of Resources

2. Lesson Objective  SWBAT assess the relationship between the scarcity of resources and the decisions which we make.

3. Word of the Day  Scarcity of Resources  The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.

4. Initial Activity You and your friend have $3 to spend on lunch. How do you feed yourselves from the Dollar Menu?

5. Economics  Economics Definition  The science of decision-making  Economic principles aren’t just about money  All opportunities in life  Weighing the benefits vs. cost of decisions of any action  Case in point: soda can design vs. milk cartoon design

6. Economics  How might economics be the most useful thing you learn in school?

7. Economic Principle #1 Scarcity of Resources  “people have unlimited wants but resources are limited.”  Resources: money, time, energy, etc.  Necessities in life: food, shelter, transportation, insurance  Desires in life: iPod, “dubstep”?, Mustang  “Because of scarcity, various economic decisions must be made to allocate resources efficiently.”  Getting the most out of your resources  Avoiding waste and maximizing profit

8. Economic Principle #1  Why worry about the scarcity of resources in your own life?  Why worry about the scarcity of resources on our planet?

9. Activity: Marshmallow Tower How do you allocate your resources in the most efficient way to maximize profit (or success in a competition)?  Task for today  Groups of 4 (choose your own groups)  Collect supply bag and money  Your task is to create the largest possible marshmallow tower and have the most money left at the end of the period.  Judged by multiplying height x width  How you build your tower is up to you but you may only use your given supplies YOU CANNOT STEAL FROM ANYONE BUT YOU CAN SELL/BUY SUPPLIES.  You only have 20 minutes for this activity!!!!

10. Summary  Discussion  How did you time limit affect your decision-making?  How did you money supply affect your decision-making?  How did your marshmallow supply affect your decision-making?  How did your planning/strategy change as your resources diminished? (time, money, marshmallows)  Exit Ticket  Describe the relationship between the scarcity of resources involved in the marshmallow tower activity and the decisions you made to achieve the activity’s goals.