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Today’s Objectives – Day 1

Today’s Objectives – Day 1. We will… Role Call and Syllabus review Economic Activity: Discovering Scarcity Chapter 1 Notes You will… Understand the course and its expectations Have a better understanding of how scarcity and how it connects to Economics

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Today’s Objectives – Day 1

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  1. Today’s Objectives – Day 1 • We will… • Role Call and Syllabus review • Economic Activity: Discovering Scarcity • Chapter 1 Notes • You will… • Understand the course and its expectations • Have a better understanding of how scarcity and how it connects to Economics • Understand basic concepts of Economics including scarcity, positive and normative economics and the 7 principle of Economics

  2. Discovering Scarcity • 1. Get into groups of 3 or 4 • 2. Scarcity Exercise

  3. Activity Questions • 1. How did this activity exemplify the economic principle of scarcity? • 2. What were some of the thoughts behind choosing a preference? • 3. How does scarcity affect your daily life? Think of an example.

  4. Economic thinking What you need to remember to be a good student of economics

  5. What is Economics? • Economics is… • A Social Science • A study of how resources are used to their fullest potential • NOT directly concerned with money or politics or the stock market • When you are trying to make the most out of what you have you are doing… Economics

  6. Macro vs. Micro • What do you think is the difference between the prefixes “macro” and “micro”? • Write in on your note sheet • Compare it to a partner.

  7. Macro vs. Micro • Macroeconomics = economic issues of a nation • Microeconomics = economic issues of the individual and/or firm

  8. Examples of Types of Economics • What is an example of a macroeconomic issue? • What is an example of a microeconomic issue?

  9. Positive and Normative Economics • Positive Economics • Gives a concrete estimate to an issue • Focuses on facts and cause and effect relationships • Based on scientific method • Normative Economics • Uses value judgments and opinions • Used to find the “best option”

  10. Positive Economics Normative Economics

  11. 7 Principles of Economics • PEOPLE CHOOSE • Scarcity forces people to choose 1 option over another • Ex: Sleep or get to school on time • PEOPLE’S CHOICES INVOLVE COST • Every choice has a cost and benefit • Ex: Sleep in = more rest, but potential punishment OR No sleep = no punishment

  12. 7 Principles Continued • LIFE IS LIVED ON A MARGIN • Each additional item added has a marginal cost and a marginal gain – is one more worth it? • Ex: The GUM CHALLENGE • PEOPLE RESPOND TO INCENTIVES IN PREDICTABLE WAYS • Incentives always change people’s decisions • Ex: Sales – If two products are available and one is on sale while the other isn’t, people may choose the cheaper one even if it’s a lesser quality

  13. 7 Principles Continued • PEOPLE GAIN WHEN THEY TRADE VOLUNTARILY • You can’t do everything – you trade • MARKETS COORDINATE TRADE • Markets bring people together perfectly without intervention • PEOPLE’S CHOICES HAVE CONSEQUENCES IN THE FUTURE • A choice today affects you and others later • Ex: Going to lunch may mean you don’t have enough money for the concert this weekend.

  14. EXIT SLIP 3-2-1 • LIST THREE WAYS YOU USE ECONOMICS IN YOUR DAILY LIFE • DEFINE THE TWO FIELDS OF ECONOMICS • WRITE ONE NEWSPAPER HEADLINE WHICH ILLUSTRATES POSITIVE ECONOMICS

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