Unit One: Learning Objectives: North Clackamas School District Social Studies Priority Standards: • Econ 53. Describe characteristics of command, market, traditional, and mixed economies and how they affect jobs and standards of living. • Econ 59. Demonstrate the skills and dispositions needed to be a critical consumer of information. Lesson One: Daily Learning Target I Can define and explain in writing the following key Economic concepts: Economics Scarcity Entrepreneurs Rubric for Daily “Exit Tickets” K.I.M. Vocabulary, H.O.T. Questions and Summary Paragraph EXCEEDING 5 PROFICIENT 4 PROGRESSING 3.5 EMERGING 3 Your K.I.M. vocabulary is detailed and complete (including memory device). Critical thinking answers and summary paragraph are detailed, clear and accurate with specific supporting details in complete sentences. Your K.I.M. vocabulary is complete (including memory device). Critical thinking answers and summary paragraph are clear and accurate with specific supporting details in complete sentences. Your K.I.M. vocabulary is complete . (including memory device). Critical thinking answers and summary paragraph are accurate with minimum supporting details in complete sentences. Your K.I.M. vocabulary is complete –”sloppy”, “rushed.”Critical thinking answers and summary paragraph are and accurate with little supporting details in complete sentences. What is Economics? –Test your knowledge pre-instruction and choose the correct answer: A. Economics is the political science that deals with unemployment, inflation, taxes, business cycles, money, supply, and trade. B.Economics is the social science that studies money and banking. C.Economics is the social science that examines the interaction of demand and supply. D. Economics is the social science concerned with the problem of scarcity. And the correct answer is……. Economics is the social science concerned with the problem of scarcity. D. What is Economics? Goods and Services are tangible and intangible things that satisfy people’s wants and desires. Goods: Cars, Computers, Snack food, Fruit, Cell phones Services: Doctor, Teacher, Accountant, Librarian Entertainment: Movie theater, zoo SO… What are the wants and desires of all individuals? How about You? H.O.T Question #1: What Do You Want/Desire most? Make a short list. List 5 in each category on the right side of your notes. Please come up with your own original ideas. Goods: Services: Entertainment: Pair/Share Share in Table Groups Share Out With Entire Class Let’s be honest…… WE WANT EVERYTHING! And sadly perhaps…… OUR WANTS ARE UNLIMITED!! What is Economics? We want; food, water, good grades, a haircut, money, a car, a home, pictures, furniture, groceries, relationships, happiness, we want, we want, we want… the list is endless What is another definition of Economics? (K.I.M Vocabulary Word #1) “Economics is the study of how individuals and society, experiencing virtually limitless wants, chooses to allocate its scarce resources to satisfy those wants.” • So what dilemma does this create? – We have unlimited wants, and scarce resources. • What causes this dilemma? – Scarcity (K.I.M Vocabulary word #2)- the idea that our unlimited wants out weigh the resources available which makes all levels of society make decisions. . ECONOMICS….. The science of “scarcity” ECONOMICS Scarcity Choices What is given up In other words “THIS is not the case”. Choices Unlimited Needs and Wants Demand “No horn of plenty” Limited Resources Supply ECONOMICS - “science of scarcity” -The study of how people satisfy their needs and wants by making choices. Physicists explore the physical world. Economics as a social science looks at the behavior of people in the marketplace. Economics is not an “exact science” but it gives “likely results”. The economist’s lab is the real world. They don’t conduct controlled laboratory experiments. They are predicting human behavior. Economics is the academic discipline most discussed by the general public. It is also one of the least understood. [“Language of graphs”] Personal Income (%) 3.4% Lowest 20% Income Group [only 3% graduate from college] 8.6% 14.5% 22.9% 50.5% Second 20% Income Group [only 4.6% graduate from college] Middle 20% Income Group [only 12% graduate college] Fourth 20% Income Group [25% graduate from college] Highest 20% [51% graduate college] Direct(positive) Relationship Independent variable–“induces”(cause); Dependent variable– “responds”(effect) Direct – 2 variables move in same direction. “Econ, Econ” Econ Inverse (Negative) Relationship Inverse - 2 variables move in opposite directions $50 40 30 20 10 0 ATTENDANCE (thousands) 0 4 8 12 16 20 $50 a b c d e f TICKET PRICE (P) TICKET PRICE 40 30 20 10 a In Economics the independent variable can be on either axis. b c d e f 0 4 8 12 16 20 ATTENDANCE IN THOUSANDS (Q) INFINITE and ZERO Slopes Y Consumption Price of Bananas Y Slope = Infinite Slope = Zero X Purchases of Watches Increasing “Y” has no effect on “X”. Divorce Rate X Increasing “X” has no effect on “Y”. Whoa Nellie…….. Hold your horsies Kirby! Your movin way too fast! Let’s slower down a little and take a Nice leisurely walk through the park H.O.T. Question #2: Define Scarcity in “kid friendly language? – Not enough resources to meet demand H.O.T. Question #3: Why do you think scarcity is a problem in our society-Give some examples of how scarcity is a problem today? • Write your own thoughts • Now Pair share/share out as a class • What else is Economics? – Economics is common sense made confusing. – Economics is the science of decision making. What is Economics? • Economics is all about scarcity and choice. • The Study of Economics begins with the idea that we can’t have everything we want • This means we must make choices!!! Needs and Wants • We have needs, which are things that are necessary for survival • We also have wants, which are items we desire but are not essential to survival • Since we can’t have everything we want, and even at times everything we need, we have to consider our options and make choices Needs and Wants H.O.T Question #4: Create a T-chart. On one side list 10 things you NEED to survive on a daily basis. On the other side, list 20 things that you want. You have 10 minutes to do a “quick write” here. Of course we will share out. Food, clothing, shelter, Land, Labor, Capital, Entrepreneur Challenger Hemi, mansion, gigantic Hi Def TV, Diamond jewelry, Iphone 10, quality digital camera, good health, laptop Rent, Wages, Interest, Profits Unlimited Human Wants Limited Resources “Need” those first three to survive. Economics • Putting it all together: Economics is the study of how people seek to satisfy their wants and needs by making choices • At its core economics is the science of “scarcity” and the study of the choices we make when faced with scarcity Hot Question #5: What is scarce? – Everything is scarce because our wants ALWAYS exceed the limited resources available. • Simply put… Economics is: – Economics=Scarcity • And the definition of Scarcity is – Scarcity = wants > availability of resources Opportunity Cost • When decisions are made there is always a cost involved. – Opportunity Cost= the value of what you must give up when you make a particular choice. Hot Question #6: If you were/are going to college next year, what would you be giving up? We will pair share and share out here. H.O.T. Question #7: What are the four Categories of Scarce resources: 1. Land • Raw Materials, Natural Resources, Air, Water 2. Labor (Human Capital) • Human knowledge, Skills, Workers willing and able to perform a job 3. Physical Capital • Machines, Factories, Equipment 4. Entrepreneurship • Someone willing to take a risk and start a business Factors of Production • All the resources used to produce goods and services are factors of production, or factor resources. • The factors of production are land, labor, capital, and some economists would argue that a fourth is entrepreneurship Land • Land- All the natural resources used to produce goods and services • This includes land used for farming, trees, coal, oil etc. Labor and Capital • Labor- The effort a person devotes to a task for which that person is paid • Capital- Is any human made resource used to produce other goods and services Two Categories of Capital • Physical Capital- These are the human-made goods that are used to produce other goods and services. • Human Capital- Is the knowledge and skills a worker gains through education and experience • Our economy depends on the quality of both physical and human capital to run efficiently and effectively H.O.T. Question #8 • Human Capital- Is the knowledge and skills a worker gains through education and experience. • Question #8: What kind of “human capital” do you possess now and what kind of “human capital” do you hope to acquire in the future? • We certainly will share out. I am interested in your thoughts! Entrepreneurs-(K.I.M. Vocab. Word #3) • The ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services • They solve the problem of scarcity • They are the individuals who take risks to develop new ideas, start businesses, create new industries, and fuel economic growth H.O.T. Question #9 Name the Factor of Production addressed in this diagram. In a magical world, there would be no need for Economics, but we live in a world of Scarcity. We need have a general understanding Of some basic economic reasoning principles. Scarcity • Scarcity is the realization that our wants and desires are unlimited but the world’s natural resources are limited. • In other words, we always want more than we have. • We cannot wave a magic wand to get everything we desire. Wouldn’t it be nice if we could just wave the magic wand and multiply our dollars? Economics • Due to scarcity, we cannot have everything we want or need. Therefore, we have to make choices. • Economics is the study of the choices we make. Which will you choose in a world of limited resources? Summary Paragraph: • Define scarcity in your own words. • Explain how scarcity affects your daily life. • Would you want to be an entrepreneur some day in the future? Explain your answer. Problem Solving Activity #2 • You can work alone or with a partner. • If you work with a partner, you need share the writing and turn in one paper with both your names on the paper. • You have 30 minutes to complete this task. • GO…… Problem Solving Activity #2: Shopping at the “Ten Dollar Tree” (50 Points-Practice) This Exercise focuses on the economic concept of “Scarcity.” Scenario: A Natural disaster has destroyed much of your town. Only one store remains in tact- The Dollar Tree, where everything is $1, until today. Will Cheatya. unscrupulous owner of this establishment in true “supply and demand “ fashion, knows he can take advantage of the situation and decides to raise everything in his store to $10 each. Your mission: A. You have $200 to your name and you NEED food and supplies to last you two weeks until emergency help arrives. B. By the way, you are living in your shed (where you keep your lawn mower etc.) Your house has been wiped out. C. You have no supplies or food (unless you plan on eating your “weed whacker”) or drink (gasoline? I don’t think so my friend!) You have salvaged a case of water from the ruins of your home. D. This means you can only purchase 20 items. E. Create a list of 20 different items you will buy. F. Think about the kind of items available at the dollar store. G. Write a brief explanation for each item you choose (one sentence each).