Presentation on theme: " We will… Role Call and Syllabus review Economic Activity: Discovering Scarcity Chapter 1 Notes You will… Understand the course and its expectations."— Presentation transcript:
We will… Role Call and Syllabus review Economic Activity: Discovering Scarcity Chapter 1 Notes You will… Understand the course and its expectations Have a better understanding of how scarcity and how it connects to Economics Understand basic concepts of Economics including scarcity, positive and normative economics and the 7 principle of Economics
1. Get into groups of 2 or 3 You may want to find someone with a knowledge of football (American, not futbol) 2. Come up and grab the worksheet 3. Auction Draft – each group may draft 2 players – each group is limited to $100 Position does not matter – you can draft anyone Points will be collected each week for your 3 players for a team competition There are no trades or waiver pick ups so plan carefully http://g.espncdn.com/s/ffldraftkit/13/NFLDK2K13_CS_S tand$.pdf?addata=2013=ffldft_chtsht_standvalues_xxx
1. Get into groups of 3 or 4 2. Scarcity ExerciseScarcity Exercise
1. How did this activity exemplify the economic principle of scarcity? 2. What were some of the thoughts behind choosing a preference? 3. How does scarcity affect your daily life? Think of an example.
What you need to remember to be a good student of economics
Economics is… A Social Science A study of how resources are used to their fullest potential NOT directly concerned with money or politics or the stock market When you are trying to make the most out of what you have you are doing…
What do you think is the difference between the prefixes “macro” and “micro”? Write in on your note sheet Compare it to a partner.
Macroeconomics = economic issues of a nation Microeconomics = economic issues of the individual and/or firm
What is an example of a macroeconomic issue? What is an example of a microeconomic issue?
Positive Economics Gives a concrete estimate to an issue Focuses on facts and cause and effect relationships Based on scientific method Normative Economics Uses value judgments and opinions Used to find the “best option”
1. PEOPLE CHOOSE Scarcity forces people to choose 1 option over another Ex: Sleep or get to school on time 2. PEOPLE’S CHOICES INVOLVE COST Every choice has a cost and benefit Ex: Sleep in = more rest, but potential punishment OR No sleep = no punishment
3. LIFE IS LIVED ON A MARGIN Each additional item added has a marginal cost and a marginal gain – is one more worth it? Ex: The GUM CHALLENGE 4. PEOPLE RESPOND TO INCENTIVES IN PREDICTABLE WAYS Incentives always change people’s decisions Ex: Sales – If two products are available and one is on sale while the other isn’t, people may choose the cheaper one even if it’s a lesser quality
5. PEOPLE GAIN WHEN THEY TRADE VOLUNTARILY You can’t do everything – you trade 6. MARKETS COORDINATE TRADE Markets bring people together perfectly without intervention 7. PEOPLE’S CHOICES HAVE CONSEQUENCES IN THE FUTURE A choice today affects you and others later Ex: Going to lunch may mean you don’t have enough money for the concert this weekend.
LIST THREE WAYS YOU USE ECONOMICS IN YOUR DAILY LIFE DEFINE THE TWO FIELDS OF ECONOMICS WRITE ONE NEWSPAPER HEADLINE WHICH ILLUSTRATES POSITIVE ECONOMICS