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Understand how choices are made with limited resources in the world of economics. Learn about economic decision-making, models, and factors of production. Explore cost types and important economic concepts.
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Class Starter • See Ms. Leslie for Political Cartoon Analysis
I. What is Economics? • The study of how we make decisions in a world where resources are limited • We have many needs and wants, but we have to make decisions because of scarcity
II. Economic Decision Making • Because of scarcity, every government, business, and individual has to answer 3 questions: • What to produce? • How to produce? • For whom to produce?
III. Economic Models • To help us make economic decisions, we will use economic models • Ex. Charts, graphs
Which amendment gave those age 18 and older the right to vote? Which clause of the Constitution allows the Supreme Court to declare a state law unconstitutional? Explain recall. Which government official is not directly elected by citizens? Class Starter
Benchmark Review • Old Benchmark Exam!
Class Starter • Which group (Federalist/Anti-Federalist) supported a strong central government? • What is a referendum? • List 2 checks that the Senate has over the President. • How are votes in the Electoral College allotted for each state?
Class Starter • What is the purpose of providing charter schools? • Which level of government determines how a piece of land can be used? • Which amendment requires that states provide all the rights listed in the Bill of Rights to all of their citizens? • What is recidivism?
I. Economic Decision-Making • Every decision made has some type of cost or consequence
II. Choices • Trade-off: the alternative you face if you decide to do one thing rather than another • Ex. You can go to the movies or study for your economics test
Opportunity Cost: the cost of the next best alternative use of time and money when choosing to do one thing rather than another • Go to the movies—do poorly on your test, fail the EOC • Study for the test—miss the fun with your friends
III. Other Types of Cost • Fixed costs: Expenses that are the same no matter how much or how little you produce • Ex. Mortgage payments, property taxes • Variable costs: Expenses that change when the # of items produced changes • Ex. Salaries, materials, light bills
Total Costs: fixed costs and variable costs added together • Fixed + Variable = Total
Class Starter • Who is responsible for paying the cost of incarcerating criminals? • Which set of laws simplified Roman Laws? • List some examples of civic duties. • Which amendment contains the Equal Protection Clause?
I. Producing Goods and Services • We produce goods and services for people to buy • Goods: tangible products that we use to satisfy our wants and needs • Services: work performed by a person for someone else • Gross Domestic Product (GDP): the total $ value of all final goods and services produced in a country during a single year
II. Factors of Production • Resources necessary to produce goods and services • Land, labor, capital, entrepreneurship
Land (natural resources): things we find in nature that make production possible • Ex. Trees, animals, water, air • Labor: human effort directed toward producing goods and services • Ex. Doctors, lawyers, teachers, plumbers, cashiers
Capital: previously manufactured goods used to make other goods and services • Ex. Sewing machines, projectors, pens, hammers, $ • Entrepreneurship: the ability to start a new business • Entrepreneur—someone who starts a business; person has to be innovative and willing to take risks to make the profit
