“Do Now” (Should be completed within first 5
minutes of class)
 Q: What is economics? How would you define it?
Unit 1: What is Economics?
STANDARD 1.1.1, 1.1.2, 3.1.2
A Few Reminders
•I F Y O U A R E A B S E N T I W I L L
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AND WORTH 10 PERCENT OF
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Its all about Incentives…
 Freakanomics: Potty
Training Incentive Video
 http://www.criticalcom
mons.org/Members/fsus
tavros/clips/freakonomi
cs-potty-trainingincentives
What does this have to do with this class?
 Economics: the way people make
decisions in a world of scarce resources
 Potty Training Example: M&M’s was supposed to be
an incentive (motivator) to use the bathroom, but
child cheated system to get more M&M’s

Other examples of cheating the system?
Essential Question
How does households,
businesses, and government
confront unlimited wants
but limited resources?
What is Scarcity?
 Economics studies scarcity of goods and services
and choices involved
 Scarcity = people, businesses, and
governments have more wants and
needs than they have resources
 Long
term & Permanent
 Examples: Time, $$$
Cost Benefit Analysis
 As a result of scarcity people must make decisions using a *costs /
benefit analysis*: economic approach that is used to determine
and choose the best choice/option
 NOT PLAY FOOTBALL 1


Costs: Might give up chance for scholarships
Benefit: More time for other extracurriculars, won’t get injured
PLAY FOOTBALL 2


Costs: Injury (concussions), time (practice goes late)
Benefit: Scholarships for college, fitness, enjoy friends and recognition
Recap / Knowledge Check
 Classroom Discussion: What are some examples of
scarce resources in your life. What kind of economic
decisions do you make at school?
Do Now
 Define Economics
 Explain the concept of scarcity
Economics and Resources
 You make economic choices based on your needs and
wants
 A resource is anything that people use to make or
obtain what they need or want
How exactly do we get what we need/want?




Factors of production (to make):
1. Land: (Natural Resources)
2. Labor: (Human Resources)
3. Capital: Human-made resources used to complete
tasks
 Capital
Goods: tools, factories, etc
 4. Entrepreneurship: clearly defined property rights,
open trade policies
What factor of production do these images
illustrate?
Natural Resources
(land)
What factor of production do these images
illustrate?
Capital
What factor of production does this images
illustrate?
Human resources (labor)
Entrepreneurship
Entrepreneurs: someone who *risks*
economic failure to come up with a new product,
business or idea in order to sell it
They fuel economic growth and development!




1.Independence! 2.Creativity! 3.Good Working
Conditions!
High Risk can translate into high income and
wealth
Essential Question
 What Economic
factors influence
economic growth in
developing
countries?




1. Land
2. Labor
3. Capital
4. Supportive
Government Policies:
Entrepreneurship,
Open Trade, and Rule
of law.
“Do Now”
What are the four factors of
production?
What are the expected costs
and benefits of being an
entrepreneur?
Discussion (Do Not Write)
 Explain a time in your life where you had to make a
choice but you had many other options or choices
available.
 What were you thinking/wondering as you were
deciding what your final choice would be?
What is opportunity cost?
 Choosing among alternative uses for available
resources forces people to make choices. One good
is sacrificed for another. This is called a trade-off.
 Opportunity Cost: the cost of this trade off. The
value of the next best alternative given up to
obtain that item. Or second to next choice
 Example: During the summer I had to choose
between going to the Eminem concert or a
friend’s birthday. I choose the Eminem concert!
The opportunity cost is friend’s birthday
 http://www.criticalcommons.org/Members/fsustavr
os/clips/solman-opportunity-cost
Which number choice is the opportunity cost?
 How will Mr. Said spend his lunch period of 30 minutes
 Number 1 Choice: Eat Lunch
 Number 2 Choice: Go print papers
 Number 3 Choice: Grade Papers
 Number 4 Choice: Relax and do nothing
Do Now
What have you
learned about
economics so far
Explain.
How opportunity costs works…
 Because of
limited
resources, every
choice has an
associated cost
 This is the
value of the
good you
must give up
when you
make a choice
Productions Possibilities Frontier
 Imagine a company/country that can only
 make 2 things!
 How
do we visualize that?
 Productions Possibilities Frontier:
 graph that shows all of the possible
 combinations of two goods or services that can
 be produced within a stated time period.
 PPF Curves show opportunity cost
 Represents a country’s total possible output
for two goods
 Why just two?
X and Y axis, graphs are showing linear
relationships
Shows opportunity cost of producing
more of one good/less of another
 The curved line represents efficient use of
resources
 10 of Good B and 1 of Good A is efficient!
 6 of Good B and 1 of Good A would be what?
 Anything above the line of efficiency is
*impossible* to attain without new technology and
inventions
***IMPORTANT PLEASE WRITE***
•A shift right/up in the curve represents an introduction of
new technology or discovery of new resources
•A shift left/down represents either a natural disaster or
loss of resources
Do Now
How was your weekend?
Define and Apply (Unit 1 Study Guide)
 What is economics?!
 Opportunity Cost
 Entrepreneurship
 PPF Curves and Positions of Letters
 Factors of Productions and Examples!!
Do Now
 What have you learned in class so far?
 Writing Tracker
 Topic: Should the death penalty be abolished in the USA?