Presentation on theme: "Agenda: Monday, 12/1 Turn in: –Ch 1 in back Econoland Simulation Simulation Quiz ECONO ="— Presentation transcript:
Agenda: Monday, 12/1 Turn in: –Ch 1 in back Econoland Simulation Simulation Quiz ECONO =
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!
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?
Does this chart represent the game? Why or why not?
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…
Agenda: Tuesday, 12/2 Econoland Quiz/review –Incentives Opportunity Cost Notes The Real OC! Opportunity cost problems Guns v. butter? Unit 1 review sheets
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… –Thinking @ 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….
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!
Opportunity cost #1 example Detroit Harrisburg –What’s the cost of the trip? Bus $100 + 100= $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