Unit 1 ScarcityChoicesEconomic Systems

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Unit 1 Scarcity/Choices/Economic Systems
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What is economics?

• The study of how people satisfy their needs and
  wants using limited resources
• Soooo what are resources?

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Resources??
Time
OIL
Water trees
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Needs vs wants?

• Example of a need
• Food, water, shelter, clothing
• Example of a want
• A cd player, a tennis racket, a pet

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But what about these??
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scarcity..

• Means that people do not and cannot ever have
  enough resources to satisfy their every desire

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The importance of choice..

• Because of scarcity, the choices made become
  extremely important

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List of choices made by you

• If/where to go to college
• Whether to buy lunch
• How to spend your money this weekend
• Whether to get a job

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Choices made by families

• To buy you a car
• Where to go on vacation
• What to buy at the grocery store

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Choices made by cities

• To build a park
• To install a stoplight
• To repair streets

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Choices made by states

• To add to highway patrols
• To build museums
• To have a road system

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Choices made by nations

• To have a military
• To fund public education
• To support job/career training

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What is the difference between scarcity and
shortage??

• Shortage is temporary and can be fixed
• Bread milk during snows
• Scarcity cannot be fixed, exists everywhere, all
  the time, means there is a limit to the resource

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Factors of Production

• What does every business need to operate??

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Stop

• Factors of production activity

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Trade-off

• Any choice you make has a trade off something
  that could have been chosen but wasnt
• EX instead of playing a sport, I could be in
  the band
• instead of eating a hamburger for supper
  I could have pizza
• instead of going to college, I could get
  a job
• does not indicate a value for the trade-off

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Name some trade-offs for

• Taking AP English
• Buying a pair of red shoes
• Driving a jeep
• Sleeping late

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Opportunity cost -

• The cost of the next best alternative to the
  choice you made DOES imply a value to your
  choices. Answers the question what did my
  choice cost me?

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Opportunity cost example

• Because I came to school today, I could not sleep
  late, or watch TV or go shopping. (These are
  trade-offs).
• If the order of my preference is 1. watch TV 2.
  go shopping 3. sleep late THEN my opportunity
  cost is watching TV because thats my next best
  alternative.

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What are some opportunity costs for

• Dating only 1 person in high school
• Training to be an Olympic champion
• Working after school everyday
• Increasing spending on national defense

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Stop

• Do the nuclear survivor activity

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Production Possibilities Curves

• Making trade-offs by using production
  possibilities curves
• Shows the maximum combinations of goods
  services that can be produced by a company or a
  nation from a given amount of resources
• Nickname guns butter curve
• Use of this information allows better decisions
  to be made about how to best use resources

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Stop

• Do the hats airplanes activity