1. Economics-- Study of how people try to satisfy unlimited and competing wants through the use of scarce resources

2. Dreaded Disease Scenario You are on an island that is periodically struck by a “dreaded disease” the affects only children. You know the disease strikes randomly and affects 80% of the island’s child population. There is a preventative antidote that reduces the chance of death if taken before the disease strikes. – 0 doses of antidote= 90% chance of dying – 1 dose of antidote= 10% chance of dying – 2 doses of antidote= 8% chance of dying – 3 doses of antidote= 6% chance of dying – 4 doses of antidote= 5% chance of dying After 4 doses, there is no further effects…remains 5% d/r Suppose there are 1000 children on the island with 1,000 available doses. Need to act immediately… HOW ARE YOU GOING TO GIVE OUT THE DOSES?

3. Solutions How does “scarcity” effect situation? Consider the different market methods…command, free-market, equal? What is the best method of distributing for the most people? Benefits for families? For pharmaceutical companies? – This is economics

4. Exit Slip In your own words, compose a definition to the term “economics” – Consider everything we have learned today and the mind set needed to think this way – I will collect, put your name on paper