2. Objective: –Explain what economics is and how we make economic choices. Bell Question: –What is a need? What is a want? What is the big difference between the two? Bell Work

3. SLICE O’ LIFE - NB #2

4. NEEDS VS WANTS $SOMETHING NECESSARY FOR SURVIVAL $SOMETHING WE DESIRE BUT NOT ESSENTIAL TO SURVIVAL

5. ECONOMICS THE STUDY OF HOW PEOPLE, BUSINESSES & NATIONS SATISFY THEIR NEEDS AND WANTS BY MAKING CHOICES BASED ON SCARCITY

6. 2 ways to study Economics Microeconomics – the study of economic behavior and decisions of small units, such as individuals, families and businesses. Macroeconomics – the study of the behavior and decision making of entire economies.

7. GOODS & SERVICES PHYSICAL OBJECTS ACTIONS OR ACTIVITIES THAT ONE PERSON PERFORMS FOR ANOTHER

8. SCARCITY: Limited resources for unlimited wants and needs Everything is scarce Not the same as a SHORTAGE, which is temporary Societies must make choices on the best way to use their resources.

9. OPPORTUNITY COST The next best alternative you give up when you make a choice

10. DECISIONOPP. COST 1. 2. 3. 4. 5. List 5 decisions you made in the last week and the opportunity cost of that decision….