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).