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Economic Decision Making

Economic Decision Making. Economics in Action. Lesson 2. How would your students define economics?. Economics. the science of decision making … the study of choice… ‘Economics’ evaluates relative cost benefits of each alternative. Decision making….

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Economic Decision Making

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  1. Economic Decision Making

  2. Economics in Action Lesson 2

  3. How would your students define economics?

  4. Economics • the science of decision making … • the study of choice… ‘Economics’ evaluates • relative cost • benefits of each alternative

  5. Decisionmaking… weighs the costs and benefits of alternatives identifies the real or opportunity costs of a decision

  6. Opportunity cost…. the best alternative not chosen the next best alternative What is the common misconception regarding opportunity cost?

  7. PACED Decision-Making Model • A very useful 5 step tool to help students reach personal and societal decisions. • The five steps are:

  8. PACED Decision-Making Model P. What is the PROBLEM? A. What are the ALTERNATIVES? C. What are the CRITERIA important to the decision? E. EVALUATE each alternative. D. Make a DECISION

  9. Economic Reasoning …an analysis of costs and benefits to make rational choices Two basic economic premises: People economize People respond to incentives in predictable ways

  10. Choices

  11. Choices • Making good choices helps us use limited resources wisely. • Most choices involve trade-offs…a little more or a little less of something.

  12. Allocation • Different methods can be used to allocate goods and services. • Which methods are best? • Which piece of the pie do we use to allocate different kinds of goods and services?

  13. Classifying economic activities • Each type of economic system represents: • A way of allocating resources • A way of making decisions

  14. All economic systems must… answer the same basic economic questions • What… • How … • For whom…

  15. Economic Systems • Traditional Economies - make decisions by repeating decisions of previous generations • Command Economies - an authority figure makes the decisions • Market Economies – individuals and businesses make the decisions; price determines how goods and services are allocated

  16. Relate concepts of this lesson to: • Travel • www.travel.state.tx.us • Regions Cities Videos Weather and more…

  17. Plan a Texas vacation • Two people • 6 days • $1000 allowance • Activity 2.1 Students use the Paced Decision-Making Grid

  18. Decisions/Choices • Where? • When? • Mode of transportation?

  19. Where? • Big Bend • Gulf Coast • Hill Country • Panhandle Plains • Piney Woods Region • Prairies & Lakes Region • South Texas Plains

  20. When? • Fall • Winter • Spring • Summer

  21. Mode of transportation? • Car • Air • Bus • Bike • Other • Walk

  22. Where to begin? • Trip Ideas • You are here: • Home >  • Plan Your Trip >  • Trip Ideas • Get a head start on your Texas vacation with helpful ideas to plan your getaway. • Start planning your perfect Texas getaway. First, take a look at our latest advertising campaign. When you see a place or activity that interests you, match it with the perfect day trip or driving tour. You’ll also find lodging options to help you get the most from your Texas adventure. • Trip Planner • We want your trip to Texas to be as unique as the state itself. Trip Planner lets you build your own personalized itinerary of exciting places, activities and events for the perfect Lone Star vacation. www.travel.state.tx.us

  23. Texas Tourism • How to Read this Report • VARIABLESCHARACTERISTICSRECOMMENDED USE • Demographics Segmented by age, income and household A fundamental description of travelers that can be used for all marketing and communication vehicles • LifestagesAge of the Household HeadHousehold IncomeChildren under Age 18 in HouseholdA discriminating segmentation of target audience for media targeting,CRM among others • Young & Free 18‐34 years no • Young Family 18‐34 years yes • Maturing & Free 35‐54 years no • Moderate Family 35‐54 years Under $75K yes • Affluent Family 35‐54 years $75K or higher yes • Moderate Mature 55 years or older Under $60K no • Affluent Mature 55 years or older $60K or higher no • Lifestage analysis combines three variables ‐age, household income, and presence of children in the household ‐into one variable containing seven mutually‐exclusive segments defined above. Because of the age component, the lifestage segments are “moving targets” from year to year. • GenerationsTraveler’s Year of BirthA focused messaging approach that uses different mediums (radio, TV, and Internet) to target a specific audience • Millennial After 1981 • Gen X 1965‐1980 • Boomers 1946‐1964 • Silent 1930‐1945 • GI 1929 and earlier

  24. Collecting information • The following documents highlight the latest tourism data available: • 2008 Texas Travel Facts (.pdf 637KB) • 2008 Top Leisure Destinations (.pdf 108KB) • 2008 Top Attractions (.pdf 112KB)

  25. Popular Texas sites…

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