Transcript Economics - Mr. Shinn

Warm-Up
• You are given $10. You have the
option of saving it, investing $5 in a
lemonade stand, or you can spend
$10 on a movie. What will you do?
• If you could get 1 million dollars
when you graduate college or 1
billion dollars when you retire, what
would you prefer to do?
• 5.1 Identify the basic principles
of econ
Economics 5.1
Intro to Economics
What is Economics??
Economics- the study of how people seek to
satisfy needs and wants with limited resources
I. Scarcity and Choice
A. Needs and Wants
1. Need- necessary for survival
2. Want- not necessary for survival
3. Consumption- use of economic goods
II. Consumer sovereignty
1. power of consumers to decide what gets produced
2. producers meet demands or go out of business
III. Scarcity
A. Scarcity1. limited quantity of a resource to meet unlimited
wants
2. this is the driving force of economics
Make a list of all the resources needed
to make this car into a finished product
With that list, tell me whether each is land, labor (blue collar or white collar), capital
(human or physical), or entrepreneurship.
IV. Factors of Production- Resources used to
make all goods and services
A. Land- includes any natural resources
B. Labor- is the effort for which someone is paid
1.
2.
White collar workers- high skilled office work
Blue collar workers- low skill manual labor
C. Capital- any human-made resource to invest
to produce goods or services
1. Physical capital- buildings, tools, machines, etc
2. Human capital- knowledge and skills a worker
gains through education and experience
D. Entrepreneurs- risk-takers who decide how
to combine other factors of production to
create new goods and services
V. Goods and Services
1. Goods- physical things
2. Services- actions or activities that one person
performs for another
Factors of Production Flow Chart
Is it a person?
Yes
No
Labor or
entrepreneur?
is it man-made
Yes –it’s capital
No – it’s
land/natural
resources
Now back to the Aston Martin!
Kahoot?
• Get your device ready while I pull up Kahoot.
The Onesole Shoe Company
• https://www.youtube.com/watch?v=VmZRJqc
ESIU
“TRADE-OFFS AND COSTS”
Ch. 18.2
VI. Trade-offs
A. Trade-off- the process of giving up one
desire in order to satisfy another desire
1. Ex: video game vs. give girlfriend a present
2. Ex: 2 more hours of sleep vs. going to movie
premier
B. Opportunity cost- value
of what is given up in a
trade-off (the next best
alternative)
1. Ex: Dating- cost is not
dating some other person
2. Ex: College vs. workingcost is $ of college and
amount of $ gained from
working
C. Immediate gratification- when you give up
something in the long-term to satisfy an
immediate want
Read p. 508-509
1. What two factors are taken into account in a
cost-benefit analysis? Looking at the graph
on page 508, at what point should the
farmer stop farming more acres?
2. Define diminishing marginal benefit. Why
does marginal benefit diminish with
increases in quantity?
Pizzeria Madness
1. What resources in this activity were plentiful
and what were scarce?
2. What was the best strategy to win this activity?
3. Explain how this activity exemplifies the
definition of economics.
Warm Up
• What are the 4 factors or production?
• What are the 2 types of capital?
• How NOT to win on Shark Tank:
– https://www.youtube.com/watch?v=opNiKBP7hQo
Now it’s your turn!
• You are tasked with creating an
advertisement for your product or service.
• You will create this advertisement with the
intention of informing potential buyers of
what your product is and why they should
buy it.
Be an Entrepreneur
Brainstorm
With your group come up with a product. This
can be a GOOD or SERVICE.
Most innovations are an answer to a problem
with existing inventions or problems that
most people face.
How will I be graded?
1.
Design: use the poster space wisely and design in a way that is appealing
to the viewer. You must use color and be creative = 20 pts
2.
Use one of the following propaganda techniques = 20 points
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Glittering Generality
Bandwagon
Stacked Cards
Just Plain Folks
Endorsement
Transfer
Euphemism
3.
You must fill out the “Business Plan” (on the back) using complete
sentences and answering all of the questions = 20 pts
4.
All Group Members MUST have a specific responsibility = 20 points (back
side)
5. Presentation = 20 pts
To do:
1. Business plan (questions on back of page)
2. Artists: color and logo designer/drawer
3. Write Propaganda and slogan
4. Create/organize a presentation (like shark tank)
•
Divide the tasks up. You should always be working.
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Remember you’re SELLING these products and ideas