Chapter 2 Section 1
Think about this!

 Talk with a partner:
 Currently you have hundreds of options available to
you in regard to cereal or breakfast food.
 Imagine is the government one day decided to destroy
those choices and gave you only two:
 Cheerios and Special K

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How would this affect you?
What would you do in response?
How would this affect the world around us?
Why do we feel this way?
3 Economic Questions

 What should we produce?
 How should we produce them?
 Who should get these goods?
What should we produce?

 Depends on the type of economy.
 Production Possibilities Curve
 Guns or Butter
 Scarcity means, every decision comes with a cost.
 New technologies
How should we produce it?

 What fuel should we use to generate electricity?
 Is education better in public or private schools?
 Should we outsource or build here?
How should we produce it?

 Efficiency
 Morality
 Difference of Opinion
Who consumes these
goods/services?

 Who gets to drive the luxury car?
 Who has to take the bus?
 Who gets to go to college?
Who consumes these
goods/services?

 Income Distribution
 Factor Payments – Money people get for their sold work or
resources.
 How do these differ?
 Is this fair?
 Profit
 Money earned after you factor in costs.
 The reward for taking a risk.
 How much should CEOs make?
Economic Goals and Values

 Efficiency
 Freedom
 Security
 Equity
 Growth
 Conflicts between these goals.
3 Questions

Because societies answer these
questions differently, based on
their economic goals and values,
multiple economic systems have
emerged.
These systems provide basic
methods to make choices based on
limited resources.
Pair/Share

How many different ways can
we answer these 3 economic
questions?
Paradox of Choice

Is too much choice a bad thing?
Paradox of Choice

Homework - Quick Write –
Is too much choice a bad thing?