1 / 20

Economic Decision Making and Tradeoffs with Ms. Ramos

Ms. Ramos explores economic decision-making processes, tradeoffs, opportunity costs, and maximizing utility. Learn about marginal utility, production possibilities frontier, and measuring economic efficiency. Study for the upcoming unit exam with key concepts.

reed
Télécharger la présentation

Economic Decision Making and Tradeoffs with Ms. Ramos

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economic Decision Making Part B Ms. RamosAlta Loma High School

  2. What do we give up when we make a choice? Ms. Ramos

  3. Maximizing utility: What we want when we choose • Utility: satisfaction from a good, service, or action--- also may be that it improves your life • Vaccination • Studying http://library.thinkquest.org/08aug/00436/prevention.html http://library.ucf.edu/Administration/LibraryDevelopment/ENewsletter/Volume3/E-mailIssue08-07.aspx http://www.istockphoto.com/stock-illustration-8048785-silhouette-couples-dresses-up-party-dress-formal.php Ms. Ramos

  4. Which show to watch? • Which college to go to? http://www.cucirca.com/2008/04/09/watch-family-guy-online/ http://www.myspace.com/hiphopjunkieoo http://bandbent.wordpress.com/2009/12/10/guest-blog-mtvs-jersey-shore/ http://www.degreedriven.com/California-colleges/Rancho-Cucamonga/Chaffey-College-WHDDT44LXT.html http://www.workforceexchange.net/Resources/Discounts/Education/tabid/1220/Default.aspx http://gawker.com/5265355/harvard-killer-captured http://www.sportslogos.net/logo.php?id=2671 Ms. Ramos

  5. Tradeoffs: what we give up when we choose • Business • Build trucks or cars • Make trucks, tradeoff: % car market • Society • Guns vs. butter • Military or civilian goods/programs • Personal Ms. Ramos

  6. Opp Cost: The best thing we give up to get what we want • Decision matrix Ms. Ramos

  7. Ms. Ramos

  8. Making “How Much” decisions at the margin • Marginal utility: extra satisfaction from consumption/action • Negative utility: lack of pleasure from consumption/action • Law of diminishing marginal utility Ms. Ramos

  9. http://ice-cream-franchise.trendtodays.info/2010/06/25/the-exercise-and-the-law-of-diminishing-marginal-utility/http://ice-cream-franchise.trendtodays.info/2010/06/25/the-exercise-and-the-law-of-diminishing-marginal-utility/ http://www.greenwaysound.com/forsale3.htm Ms. Ramos

  10. How can we measure what we gain and lose when making choices? Ms. Ramos

  11. Measuring tradeoffs using the production possibilities frontier http://www.netmba.com/econ/micro/production/possibility/ Ms. Ramos

  12. Measuring Opportunity Costs using the PPF http://www.netmba.com/econ/micro/production/possibility/ Ms. Ramos

  13. What does the curve illustrate? Increasing costs http://www.netmba.com/econ/micro/production/possibility/ Ms. Ramos

  14. Measuring economics efficiency using the PPF http://www.netmba.com/econ/micro/production/possibility/ Ms. Ramos

  15. Measuring economics efficiency using the PPF unattainable Attainable, but inefficient http://www.netmba.com/econ/micro/production/possibility/ Ms. Ramos

  16. Reflecting economic change using the PPF Change in productivity http://www.netmba.com/econ/micro/production/possibility/ Ms. Ramos

  17. Shift out means what? Increase-growing economy Ms. Ramos http://www.investopedia.com/university/economics/economics2.asp

  18. Remember: • Shift to the right- increase/growing economy • Shift to the left- decrease/shrinking economy • Pt w/in curve= inefficiency • Pt outside curve= unattainable Ms. Ramos

  19. http://wps.prenhall.com/bp_case_econ_8/52/13546/3467867.cw/index.htmlhttp://wps.prenhall.com/bp_case_econ_8/52/13546/3467867.cw/index.html Ms. Ramos Ms. Ramos

  20. STUDY!!! STUDY!!! STUDY!!! • The unit exam will have the following: • Fill in vocabulary • 10-15 objective (multiple choice & graphs) • 2 short answer prompts- you will be given the two & NOT have a choice this exam Ms. Ramos

More Related