1. The 3 Economic Questions
Chapter 2 Section 1

2. Think about this! Talk with a partner:
Currently you have millions of options available to you in regard to food.
Imagine is the government one day decided to destroy those choices and gave you only two:
Garden Salad or Fish Sandwich
How would this affect you?
What would you do in response?
How would this affect the world around us?
Why do we feel this way?

3. 3 Economic Questions What should we produce?
How should we produce them?
Who should get these goods?

4. What should we produce? Depends on the type of economy.
Production Possibilities Curve
Guns or Butter
Scarcity means, every decision comes with a cost.
New technologies

5. How should we produce it?
What fuel should we use to generate electricity?
Is education better in public or private schools?
Should we outsource or build here?

6. How should we produce it?
Efficiency
Morality
Difference of Opinion

7. Who consumes these goods/services?
Who gets to drive the luxury car?
Who has to take the bus?
Who gets to go to college?

8. Who consumes these goods/services?
Income Distribution
Factor Payments – Money people get for their sold work or resources.
Profit
Money earned after you factor in costs.

9. Economic Goals and Values
Efficiency
Freedom
Security
Equity
Growth
Conflicts between these goals.

10. 3 Questions
Because societies answer these questions differently, based on their economic goals and values, multiple economic systems have emerged.
These systems provide basic methods to make choices based on limited resources.

11. Paradox of Choice
Some systems, such as ours, offer a multitude of choices.
Is too much choice a bad thing?

12. Paradox of Choice Homework - Quick Write –
Is too much choice a bad thing?