Advanced Placement Microeconomics Dailies : A Daily is the question you will be asked to answer in your spiral notebook at the beginning of each class. You don’t have to start a new sheet…just put date on left hand side of a new line, write the question, and answer it!! Today’s Daily: What do you think/predict is the difference between micro and macroeconomics?

Content Rich Routines Word Wall Chapter Questions

Making Sound Decisions Sunk Costs vs. Marginal Costs: –Sunk Costs: costs that cannot be avoided, regardless of what is done in the future, because they have already been incurred. –Marginal Costs: additional (extra) costs of a decision

Choosing to Satisfy Wants & Needs Need: –Basic Requirement for Survival –Ex) food, water, shelter, clothing, air Want: –An Expression of a Need –Ex) I need water, I want coffee Scarcity: –Limited Resources force us to choose what needs & wants we can satisfy

The Scope of Economics Microeconomics: –The branch of economics that examines the functioning of individual industries and the behavior of individual decision- making units, business firms and households. The Tree vs. The Forest

Summary Whenever making economic decisions, there are trade- offs, losing one quality or aspect of something in return for gaining another quality or aspect. It implies a decision to be made with full comprehension of both the upside and downside of a particular choice. When you can determine the cost of the next best alternative to an economic decision, you have determined the opportunity cost of that particular decision. Lastly, you have used marginal analysis to help you determine the costs and benefits of your decision. When you are at Steve’s party and deciding whether to stay for another 5 minutes you stay while the benefits of another 5 minutes exceed the cost. You will leave when the cost of another 5 minutes is greater than the benefit.

Finish the opening scenario; create two different examples of when the cost of staying at the party outweighs the benefit of staying at the party.

Top Ten Fun Get your index card numbered 1 – 10 and be ready!!!! Your Category is…..

The Top Ten Largest Cities in the U.S. 10.Miami 9. Boston 8. Detroit 7. Philadelphia 6. Dallas 5. San Francisco 4. Washington D.C. 3. Chicago 2. Los Angeles 1. New York