Day One Agenda

1. Day One Agenda • Turn in signed syllabus and take out your homework. • Define important economic terms. • Opportunity cost discussion • Scarcity activity • Homework: • Module 1C • Bring in two news article headlines having to do with scarcity. Write a a few sentences explaining. • Quiz -- Day Four (Module One)

2. Objectives Day One • Define the following terms: • Economics • Opportunity Cost • Scarcity • Identify examples of scarcity and opportunity costs in your own life.

3. Let’s define the basic economic problem…

4. The Earth consists of……

5. The Three Economic Questions • What goods and services will be produced? • How will the goods and services be produced? • To whom will the goods and services be distributed?

6. Opportunity Cost: The value of the next best alternative.

7. Opportunity Cost “Choosing is Refusing.”

8. Use opportunity cost to explain…. • Why farmers often wait until a rainy day to do errands in town, while a man in a new suit will decide to forgo his errands on the same day. • Why businessmen often buy full-fare airline tickets while people planning vacations fly when rates are lowest. • Why movie stars, fashion models and rock singers have higher divorce rates than the rest of the American population.

9. Scarcity “ A condition which forces us to choose.”