2Chapter 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.
3Vocabulary Scarcity Economics Need Want Factors of production Land CapitalFinancial capitalLaborEntrepreneurProductionGross Domestic Product (GDP)
4Notes: What is the fundamental economic problem? List and briefly describe the basic economic questions every society must answer:ABC
5Notes continued List and briefly describe the 4 factors of production:
6And more notesList and briefly the describe the key elements of economics:ABCD
7Activity to turn inCreate 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)
8Chapter 1 Section 2: Basic Economic Concepts Main Idea: An economic product is a good or service that is useful, relatively scarce, and exchangeable.
9vocabulary Economic product Good Consumer good Capital good Service ValueParadox of valueUtilityWealthmarket
10Vocabulary continued Factor market Product market Economic growth ProductivityDivision of laborSpecializationHuman capitalEconomic interdependence
11notesWhat is the relationship between scarcity, value, utility and wealth?Draw chart: Circular Flow of Economic Activity on page 15Explain why productivity is important to economic growth
12Activity 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
13Chapter 1 Section 3: Economic Choices and Decision Making Main Idea: Trade-offs are present whenever choices are made.
14vocabulary Trade off Opportunity cost Production possibilities FrontierCost benefit analysisFree enterprise economyStandard of living
15NotesWhat 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?
16Activity to turn inMake 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?
17Economic Systems and Decision Making Chapter 2Economic Systems and Decision Making
18Chapter 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.
19vocabulary Economy Economic system Traditional economy Command economy Market economy
24Notes List the 7 major goals of the United States economy What is the conflict of raising minimum wage?
25Activity to turn inTry 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?
26Chapter 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.