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Welcome to Econ 1

Welcome to Econ 1. Otherwise known as Principles of Microeconomics. Why is Economics worth your valuable time and money to learn?. Why is Economics worth your valuable time and money to learn?. What is economics about? What is the definition of economics?.

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Welcome to Econ 1

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  1. Welcome to Econ 1 Otherwise known as Principles of Microeconomics

  2. Why is Economics worth your valuable time and money to learn?

  3. Why is Economics worth your valuable time and money to learn?

  4. What is economics about?What is the definition of economics?

  5. We only learned one thing today ….Economics is the study of how a society allocates scarce resources to satisfy unlimited wants.So you have no excuse not to know it. 

  6. Welcome to Day 2 Principles of Microeconomics

  7. Quiz today? Magic 8 ball says ….

  8. Write your name, class day and time, and Quiz #1 at the top of your paper.

  9. Define EconomicsYour answer should start“Economics is the study of …”This question is worth 2 points.

  10. And what’s the answer?1. The definition of economics:How a society allocates scarce resources to satisfy unlimited wants.

  11. Because of scarcity, everything has an opportunity cost. Opportunity cost is the best alternative given up when a choice is made.

  12. Sometimes the opportunity cost is represented by money. Whatdo you want for your 40 bucks? or

  13. Sometimes the opportunity cost is not money. Often it is time. or or

  14. Sometimes it is even the chance of your death. 99.9999% .0001%

  15. The world as economists see it is one of continually comparing costs versus benefits.

  16. Should you go to college?

  17. What is the opportunity cost of taking this class?Tuition = $46 X 3 units = $138Textbook = $100Tuition + textbooks = $238 Is this the full cost?

  18. Don’t forget time! or or

  19. Let’s assume 50 hours in class and 50 hours study time over the next 15 weeks that could be spent on a minimum wage job.100 hours at $8 an hour = $800 dollars income given up by choosing to take this class.

  20. The biggest cost for most of you for coming to Bakersfield College is the value of your time given up. Tuition and textbooks = $178Time = $800 Total cost = $978Is this class worth $978?

  21. If college tuition and textbooks were free, could everyone afford to go?

  22. Tuition - Free Textbooks - FreeRent- ? Food - ? Clothes - ?

  23. Assume you either start working at a full –time minimum wage job at age 19 or get an A.A. and start working at a job that pays 20% more at age 21. Also assume $5,000 in tuition/textbook costs. How long until college pays for it self?

  24. H.S. Dip A.A19 yrs old $0 $0 21 yrs old $32,000 -$5,00024 yrs old $80,000 $52,60029 yrs old $160,000 $148,60034 yrs old $240,000 $244,600Getting an A.A. pays for itself by the early 30s.

  25. What about a B.A.? Cal State Bakersfield estimates $6,682 a year tuition and fees and let’s say $4,000 in textbooks over the 4 years. Total costs to get the B.A. = $30,728. Assume a B.A. recipient makes 60% more.

  26. H.S. Dip B.A.19 yrs old $0 $023 yrs old $64,000 -$30,72829 yrs old $160,000 $122,87234 yrs old $240,000 $250,872 Again, college pays for itself in the early 30s.

  27. 57% of Americans 25 and over have some college and 41% have an A.A. or higher. We are split down the middle between college and noncollegepeople. What factors affect if someone goes to college or not?

  28. Study abroad at Virginia Tech …Tai Gui Le! - Kristen Mankosa“In the US, when you see a price tag, end of story. In China, price tags can be just the beginning. Here are my 5 best tips on how to score the biggest deals…

  29. 1. Never act excited.2. Cut the price in half, then half it again.3. You’re not stealing their money. 4. Don’t be afraid to walk away. 5. Shop Around.”

  30. A partner in a top Wall Street law firm can charge $1000 an hour = $16.67 a minute. Does he really want to stand around arguing over his taxi fare?

  31. Wages Per Minute Top Wall Street lawyer = $16.67American average = $0.36Mexican Average = $0.05Chinese Average = $0.045

  32. What do Americans bargain over?

  33. Coupons are America’s bargaining.

  34. The same opportunity cost reasoning explains why people may turn down “free” money by not picking up a penny.

  35. Even when human life is at stake?

  36. What should the speed limit be? Gas and lives saved benefits versus additional time on the road loss.

  37. Source – Seat Belt Laws and Why We Should Keep Them, Richard Alsop, etc.

  38. Sometimes you can trade money for time. That’s what scalpers are for.

  39. Get the VIP Treatment At Disneyland “Our hosts booked the Premium VIP Tour ($295 per hour; $275 in the off-season), which includes “limited expedited boarding.” Guests who book the Premium VIP tour can use the Fastpass entrance at every attraction that offers that service, and have "preferred access" to more than a dozen other attractions…”

  40. Rich Manhattan moms hire handi- capped tour guides so kids can cut lines at Disney World – May 14, 2013 They are 1 percenters who are 100 percent despicable. Some wealthy Manhattan moms have figured out a way to cut the long lines at Disney World — by hiring disabled people to pose as family members so they and their kids can jump to the front, The Post has learned.

  41. The “black-market Disney guides” run $130 an hour, or $1,040 for an eight-hour day “My daughter waited one minute to get on ‘It’s a Small World’ — the other kids had to wait 2 1/2 hours,” crowed one mom, who hired a disabled guide through Dream Tours Florida.

  42. “You can’t go to Disney without a tour concierge,’’ she sniffed. “This is how the 1 percent does Disney.”The woman said she hired a Dream Tours guide to escort her, her husband and their 1-year-old son and 5-year-old daughter through the park in a motorized scooter with a “handicapped” sign on it.

  43. The group was sent straight to an auxiliary entrance at the front of each attraction.Disney allows each guest who needs a wheelchair or motorized scooter to bring up to six guests to a “more convenient entrance.”

  44. Ryan Clement runs Dream Tours Florida with girlfriend JacieChristiano, whom the rich Manhattan mom indicated was her family’s guide. A working phone number for Christiano couldn’t be found, and Clement refused to put The Post through to her. A message left on Facebook was not immediately returned by Christian.

  45. Clement denied that his gal pal uses her disability to bypass lines. He said she has an auto-immune disorder and acknowledged that she uses a scooter on the job. Disney did not return repeated requests for comment.”

  46. What we learned today.1. Opportunity cost is the best alternative given up when a choice is made.2. Economists both explain and advise human behavior by comparing benefits to costs.

  47. 3. Opportunity costs can include money, time, chance of death, effort, or just general unpleasantness.4. Examples of decisions that can’t be properly understood without understanding opportunity cost are going to college, speed limit laws, why some country’s shoppers bargain more, and behavior at Disneyland.

  48. Homework1. Know the definition of opportunity cost.2. Understand how it applies to the examples discussed in class.3. Read all of chapter 1 in the textbook.

  49. Welcome to Day 3 Principles of Microeconomics

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