1. Economic Decision Making Part B Ms. Ramos Alta Loma High School

2. What do we give up when we make a choice? Ms. Ramos

3. Maximizing utility: What we want when we choose  Utility: satisfaction from a good, service, or action--- also may be that it improves your life Vaccination Vaccination Studying Studying Ms. Ramos http://library.thinkquest.org/08aug/0 0436/prevention.html http://library.ucf.edu/Administration/LibraryDevelo pment/ENewsletter/Volume3/E-mailIssue08-07.aspx http://www.istockphoto.com/stock- illustration-8048785-silhouette-couples- dresses-up-party-dress-formal.php

4. Which show to watch? Which show to watch? Which college to go to? Which college to go to? http://www.myspace.com/hiphopjunkieoohttp://bandbent.wordpress.com/2009/12/10/gue st-blog-mtvs-jersey-shore/ http://www.cucirca.com/2008/04/09/watch- family-guy-online / http://www.degreedriven.com/California-colleges/Rancho-Cucamonga/Chaffey- College-WHDDT44LXT.html http://www.sportslogos.net/l ogo.php?id=2671 http://www.workforceexchange.net/ Resources/Discounts/Education/tabi d/1220/Default.aspx http://gawker.com/5265355/harv ard-killer-captured Ms. Ramos

5. Tradeoffs: what we give up when we choose  Business Build trucks or cars Build trucks or cars Make trucks, tradeoff: % car market Make trucks, tradeoff: % car market  Society Guns vs. butter Guns vs. butter Military or civilian goods/programs Military or civilian goods/programs  Personal Ms. Ramos

6. Opp Cost: The best thing we give up to get what we want  Decision matrix Ms. Ramos SourcePriceDeliveryCost Transaction Time Delivery Time Online Store 49.950 5 min 7 min to dwnload Catalog42.953.00 10 min 1 wk for shipping Big Box Store 35.95 4.00 gas money 1 hr or more none

7. RestaurantCostTime Yummy Factor Ms. Ramos

8. Making “How Much” decisions at the margin  Marginal utility: extra satisfaction from consumption/action  Negative utility: lack of pleasure from consumption/action  Law of diminishing marginal utility Ms. Ramos

9. http://ice-cream-franchise.trendtodays.info/2010/06/25/the-exercise-and-the-law-of- diminishing-marginal-utility/ http://www.greenwaysound.com/forsale3.htm

10. How can we measure what we gain and lose when making choices? Ms. Ramos

11. Measuring tradeoffs using the production possibilities frontier Ms. Ramos http://www.netmba.com/econ/micro/production/possibility /

12. Measuring Opportunity Costs using the PPF Ms. Ramos http://www.netmba.com/econ/micro/production/possibility/

13. Ms. Ramos http://www.netmba.com/econ/micro/production/possibility/ What does the curve illustrate? Increasing costs

14. Measuring economics efficiency using the PPF Ms. Ramos http://www.netmba.com/econ/micro/production/possibility/

15. Measuring economics efficiency using the PPF Ms. Ramos http://www.netmba.com/econ/micro/production/possibility/ unattainable Attainable, but inefficient

16. Reflecting economic change using the PPF Ms. Ramos http://www.netmba.com/econ/micro/production/possibility / Change in productivity

17. http://www.investopedia.com/university/economics/economics2.asp Shift out means what? Increase- growing economy Ms. Ramos

18.  Remember: Shift to the right- increase/growing economy Shift to the right- increase/growing economy Shift to the left- decrease/shrinking economy Shift to the left- decrease/shrinking economy Pt w/in curve= inefficiency Pt w/in curve= inefficiency Pt outside curve= unattainable Pt outside curve= unattainable Ms. Ramos

19. http://wps.prenhall.com/bp_case_econ_8/52/13546/3467867.cw/index.html Ms. Ramos

20. STUDY!!! STUDY!!! STUDY!!!  The unit exam will have the following: Fill in vocabulary Fill in vocabulary 10-15 objective (multiple choice & graphs) 10-15 objective (multiple choice & graphs) 2 short answer prompts- you will be given the two & NOT have a choice this exam 2 short answer prompts- you will be given the two & NOT have a choice this exam Ms. Ramos