Warm-Up 8/18 1. Why can’t everyone have everything they want? 2. What determines what makes something valuable?

Agenda 1. Warm-Up 2. Finish Main Idea Log “Yes Economics is a Science” 3. Scarcity and the Science of Economics H.W. Economics Checklist- Answer survey and then have an adult answer survey The students will discuss and apply economic concepts to their own lives and

Science of Economics

Your Wish List In your ideal scenario what… Kind of car do you drive? Type of house you own and location of house? What types of clothes, brands, shoes are in your closet?

Fundamental Economic Problems Society does not have enough resources for all (scarcity) Economics looks at the balance of competing wants & scarcity A want is a way of expressing a need TINSTAAFL- b/c someone has to pay for production nothing is ever “free”

Three Basic Questions Cultural/current events can determine WHAT to produce Supply of people or machines can determine HOW to produce Society must determine FOR WHOM to produce

The Factors of Production Scarcity of “nature’s gifts” (land) becoming worse Capital (goods) is the result of production Labor varies in quantity and quality throughout history Entrepreneurs start new businesses, bring new products Production requires all factors

Goods Services & Consumers Goods are econ useful & satisfy a want Consumer good v. capital good Durable v. nondurable goods Services are econ products provided by someone Consumers indulge in consumption to satisfy wants/needs

H.W. Economics Checklist Answer survey and then have an adult answer survey Pick two areas where you and the adult differed. State why and how the adult and you differed in the two areas

Agenda 1. Warm Up 2. Discuss Basic Economic Concepts 3. Levi’s Jeans Factors of Production, Application of Factors of Production The students will read for comprehension and apply concepts when answering questions.

Warm-Up 8/19 1. Why do economist argue there is no such thing as a free lunch? Do you agree or disagree with that statement? Why? 2. Explain in your own words what is meant by the principal of scarcity and how it applies to gasoline.

Value, Utility, and Wealth Some necessities have little value, some non necessities have lots Scarcity required for value Not all of us have same level of utility for a good/service Scarcity + utility of a good = value Goods counted for wealth, services are not Smith ‘people are source of wealth’

Markets Markets are the means by which buyers and sellers carry out exchange. Product markets Target, The Gap, Amazon.com Resource (factor) markets Labor market Forests Machinery

Circular-Flow Model 4 elements Households Product markets Firms Stores, where you purchase goods Firms Companies that make products Resource markets Suppliers of resources

Productivity & Economic Growth Productivity (measure of output produced by input over times) #1 factor for econ growth Applies to all FoP Div of labor aims to make workers more proficient When FoP do job more efficiently then others they specialize Gov’t and businesses benefit when they invest in human capital