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Agenda: Monday, 12/1 Turn in: –Ch 1 in back Econoland Simulation Simulation Quiz ECONO =

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Presentation on theme: "Agenda: Monday, 12/1 Turn in: –Ch 1 in back Econoland Simulation Simulation Quiz ECONO ="— Presentation transcript:

1 Agenda: Monday, 12/1 Turn in: –Ch 1 in back Econoland Simulation Simulation Quiz ECONO =

2 Factory Here! Businesses only! Must have: one unit of land, one unit of labor, one unit of capital goods to obtain one ECONO! DO NOT LOITER IN FRONT!

3 Simulation Partner Questions 1.Name the factors of production. –How were they shown in this game? –Did their value change? 2.What is the role of an entrepreneur/ household? Be specific and general –What is needed for each? 3.Explain the interdependence of the 2 groups 4.What made you successful? Un? 5.Why did you work diligently? –What or who caused you to do so? 6.What was the role of the government?

4 Does this chart represent the game? Why or why not?

5 Explain how the resources are transformed into wealth? Adam Smith: The Wealth of Nations 1700’s Revolutionary book explaining these concepts for the first time…

6 Agenda: Tuesday, 12/2 Econoland Quiz/review –Incentives Opportunity Cost Notes The Real OC! Opportunity cost problems Guns v. butter? Unit 1 review sheets

7 Opportunity Cost What is the difference? –Opportunity Cost #1 benefit refused to make a choice –Date: Ann v. Mary????? Or Doug v. Bill??? –Tradeoffs 2 –infinity choices refused when a decision is made… –Instead of buying car… Computer, flat screen, furniture… Vacation… the Margin Combining opportunites… do part of this and part of that in combination –4-10 pm: See friend, study 2 hours, BB game, study & facebook….

8 Explicit Cost v. Implicit Cost Seen Costs Money Time—IF easily calculated in terms of money (billable hours) Underlying costs Unpaid time, effort Mental anguish Long term health “Pain & Suffering” –Stress, ostracized Most answers on today’s exercise will deal with Implicit Costs!

9 Opportunity cost #1 example Detroit Harrisburg –What’s the cost of the trip? Bus $ = $200 +? Plane $300+$20= $320 +? Bus $100+$500 = $600 +? Plane $300+$100=$400 +? Ticket + Time (OC) = Cost 1 hour & $300 5 hours & $100 $20 /hour $100 /hour TICKET Price

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