Jan 10/11th

1
Jan 10/11th

• Include Lecture 1 into notebook (finished)
• Lecture 2 Scarcity
• -Make a page for this in your notebook.
• -Review Basic 1
• -Scarcity Exercise
• Homework
• -Opportunity Cost Worksheet
• due 1.14/1.15

• This past Holiday season, what items were you not
  able to find in stores? The hot gift items?

2
Basic 1

• want something we desire to have
•  
• resource anything that is used to produce goods
  or service. For example, a persons labor may be
  used to produce computers, TV sets, and much
  more, and therefore a persons labor is a
  resource.
•  
• scarcitythe condition in which our wants are
  greater than the resources available to satisfy
  those wants.
•  
• opportunity costthe most highly valued
  opportunity or alternative forfeited when a
  choice is made.
•  

• trade-offA situation in which more of one thing
  necessarily means less of something else.
•  
• production possibilities frontiera graphic
  representation of all possible combinations of
  two goods that an economy can produce.
•  
• rationing devicea means for deciding who gets
  what portion of the available resources and
  goods.
•  
• economicsthe science that studies the choices of
  people trying to satisfy their wants in a world
  of scarcity.
•  

3

• How is choice related to scarcity?
• Scarcity results in the need to make choices.
  Regardless of our level of income, each of use
  must make a choice when purchasing goods or
  services. Wants are unlimited but resources are
  limitedwe have to choose which wants will
  satisfy us.
•  

• How is opportunity cost related to choice?
• When we choose to purchase something a highly
  valued opportunity or alternative is forfeited.
  When we choose we make a trade-off.

4
Lecture 1 Scarcity, Choices, Trade-offs,
Opportunity Costs
5
What is Economics?
6
REVIEW
Remember you dont have to write down stuff in
red!

• Okay classtime to review
• What is a want?
• A want is something that we desire to have!

7
Answer the following questions in your notes!

• You do not need to write down the questionsjust
  the answers in complete sentences
• Describe one thing you did yesterday (how much
  time did it take)went to the store, talked on
  the phone, read your economics book, etc.
• NOWwrite down something you could have done
  during that same period of time, had they not
  done what they did.
• Have a couple of students share!

8
Scarcity Exists
9
Scarcity Exists cont.
10
Answer the following questions in your notes!

• Some people have suggested that one way of
  eliminating scarcity is to have fewer wants.
• Do you think this is possible?
• Which wants would you be willing to give up?
• REMEMBER WANTSARE NOT JUST THINGS YOU BUY!
  Wants can be a college education, a high paying
  job, etc.
• Have a couple of students share their responses!

11
Making Choices leads to Opportunity Costs
12
Opportunity Costs Chart 1

• Copy the following chart in your notes

The most valued opportunity or alternative you
give up to do somethingthe next best choiceis
that somethings opportunity cost.
Come up with 2 more examples on your own!
13
Opportunity Costs Cont.

• Now I want you to think about some major
  activities in which you were involved in over the
  last year, such as traveling or buying a
  large-ticket item.
• Create a table listing the Opportunity Cost of
  each activity and how much it was for each
  activity. (see next slide for example)

14
Opportunity Costs Chart 2

• Copy the following chart in your notes

Come up with at least 3 examples for your chart!
15
Answer the following questions in your notes!

• Are monetary issues the only concerns when
  determining what action are taken?
• What other concerns need to be considered when
  weighing opportunity costs?
• Discuss your answers with the class!

16
Summary

• When completing your notes you need to write a
  3-5 sentence summary of the lecture. This is a
  part of your notes grade

17
Why Didnt Chris Rock go to College? Page 9
Textbook

• Read the article on page 9.
• Answer the following question in your notebook
• What will be your opportunity costs for going to
  college?
• How will costs differ to those of Chris Rock?
• Share answers with the class!

18
Homework

• Go to a few of your favorite stores or online
  stores and pick 5 products you would like to
  purchase.
• Create an Opportunity Cost Chart with each item
  listed on the chart.
• What are the most valued opportunities or
  alternatives you would give up to buy these
  items?
• Are you willing to give up these opportunities
  for the enjoyment of the products?