1. Chapter 1
What is Economics?

2. Chapter 1 Section 1: Scarcity and the Science of Economics
Main Idea: Scarcity forces us to make choices. We can’t have everything we want, so we are forced to choose what we want most.

3. Vocabulary Scarcity Economics Need Want Factors of production Land
Capital
Financial capital
Labor
Entrepreneur
Production
Gross Domestic Product (GDP)

4. Notes: What is the fundamental economic problem?
List and briefly describe the basic economic questions every society must answer: A B C

5. Notes continued List and briefly describe the 4 factors of production:

6. And more notes
List and briefly the describe the key elements of economics: A B C D

7. Activity to turn in
Create a chart giving 5 examples of how scarcity has affected your life. The chart should include your examples and how you adjusted to the situation. (two columns)

8. Chapter 1 Section 2: Basic Economic Concepts
Main Idea: An economic product is a good or service that is useful, relatively scarce, and exchangeable.

9. vocabulary Economic product Good Consumer good Capital good Service
Value
Paradox of value
Utility
Wealth
market

10. Vocabulary continued Factor market Product market Economic growth
Productivity
Division of labor
Specialization
Human capital
Economic interdependence

11. notes
What is the relationship between scarcity, value, utility and wealth?
Draw chart: Circular Flow of Economic Activity on page 15
Explain why productivity is important to economic growth

12. Activity to turn in 3 columned chart to include:
a. list of specialized workers and capital used in our school (3 each).
b. Tell whether productivity would go up or down if these workers or capital were not available.
c. Explain why or why not

13. Chapter 1 Section 3: Economic Choices and Decision Making
Main Idea: Trade-offs are present whenever choices are made.

14. vocabulary Trade off Opportunity cost Production possibilities
Frontier
Cost benefit analysis
Free enterprise economy
Standard of living

15. Notes
What is the relationship between trade offs and opportunity costs?
What are the decision making strategies that economists use?
Why is the study of economics important to the free enterprise system?

16. Activity to turn in
Make a list of at least 5 possible uses of your time that will be available to you after school today. Put a check mark by the ones you will actually do. Describe the opportunity costs of your decision will be. How will your decision affect those around you?

17. Economic Systems and Decision Making
Chapter 2
Economic Systems and Decision Making

18. Chapter 2 Section 1: Economic Systems
Main Idea: An Economic System is a set of rules that governs what goods and services to produce, how to produce them, and for whom they are produced.

19. vocabulary Economy Economic system Traditional economy Command economy
Market economy

20. Notes
Copy chart page 38

21. Activity to turn in
Give an example of an economic activity from a traditional economy that is seen in today’s market economy. How is this activity important for the economy

22. Chapter 2 Section 2: Evaluating Economic Performance
Main Idea: The social and economic goals of the United States include economic freedom, economic security, and economic equity

23. vocabulary
Social Security
Inflation
Fixed income

24. Notes List the 7 major goals of the United States economy
What is the conflict of raising minimum wage?

25. Activity to turn in
Try to think of an example of false advertisement that you have seen first hand or give an example of one that could happen. How does this generate support of economic equity?

26. Chapter 2 Section 3: Capitalism and Economic Freedom
Main Idea: Under capitalism, the basic economic decisions are made through the free interaction of individuals looking out for their own best interests.

27. vocabulary capitalism Free enterprise Voluntary exchange
Private property rights
Profit
Profit motive

28. Vocabulary continued Competition Consumer sovereignty Mixed economy
Modified private enterprise economy

29. Notes Copy chart pg 47 Why are entrepreneurs important?
What is the role of Government in a free enterprise economy?

30. Assignment to turn in 3 columned chart to include:
List of 3 examples of voluntary exchange you have made in the last week
How it affected you
How it affected the person you made exchange with