11/21 Warm-up Questions

11/21 WARM-UP QUESTIONS

Put name, date, and period on 18.1/19.1 and pass forward.

1. A business owner is an example of which factor of production?

2. What factor of production includes money and man-made materials needed to produce an item?

Bonus Question:To whom did the Charlotte City council

announce it was going to give $87.5 million? What does the Council expect in return?

GRAMMAR LESSON- COMPLETE SENTENCES! A sentence require a subject and a predicate

(the action). EX. Willie Grimes was in prison because he was found guilty of raping a woman.

Sentences cannot begin with “because” (unless it’s an introductory clause.) Sentences definitely can’t begin with “cause,” or “b/c” BECAUSE those aren’t words.

Sentences cannot end with a preposition. A good sentence in a subject class will repeat

the question.

FACTORS OF PRODUCTION REVIEW:

1. Joe is starting a cleaning service. He has an office space, water, cleaning materials and money to pay his initial costs. Which factor of production is missing?

a. Landb. Labor

c. Capitald. Entrepreneurship

2. Which factor of production includes all human-made materials needed to produce an item?

a. Capitalb. Entrepreneurship

c. Labord. Land

3. What is the basic economic concept that indicates there is always going is to be wants not fulfilled?

a. Inflationb. Rationingc. Scarcityd. Trade-off

WHICH FACTOR OF PRODUCTION?1) oil2) a master’s degree3) making a sandwich 4) screwdriver5) Bill Gates6) 20 years of being a plumber7) soil8) building9) a robot10) designing software

FACTORS OF PRODUCTIONGive as many examples as you can for

each factor of production seen in the clip.1. Land2. Labor3. Capital- Physical and Human4. Entrepreneur

Unwrapped- Nerds Unwrapped- Sugar Sugar Handmade Lollies

ECONOMIC CHOICES P. 205Trade-off – an alternative we

sacrifice when we make a decision.Ex. You want money to pay for gas but

you also want to play football. You choose to get a job rather than playing football.

What is the trade-off? Why do you have to decide between

playing football and working?

ECONOMIC CHOICES Countries must make choices each day –

economists (one who studies economics) describes the trade-off countries face by the example of “GUNS OR BUTTER”

If a country produces more military goods (guns) then the country has fewer resources to devote to consumer goods. (butter)

ECONOMIC CHOICES Can a country make unlimited

amounts of guns AND butter?NO!!!!!!…. remember, resources

are limited!Take steel for example, if the country

is using steel to make weapons, then that steel cannot be used to make equipment needed to produce butter.

ECONOMIC CHOICESOpportunity Cost – the most

desirable alternative given up as a result of a decision.

Ex. If you have enough money to go to either a dinner OR a movie and you choose the movie,

What is your opportunity cost?

OPPORTUNITY COST

What is Opportunity Cost? video

ECONOMIC CHOICES Example: Basketball team vs. Job

Decision: Join the Basketball TeamBenefits?Opportunity Cost?Other Trade-offs?

ECONOMIC CHOICES Example: Basketball team vs. Job

Decision: Get a JobBenefits?Opportunity Costs?Trade-offs?

ECONOMIC CHOICESThinking at the Margin – deciding whether to use one additional unit of some resource.

CONSIDER THIS EXAMPLE. JOE IS TRYING TO DECIDE IF HE SHOULD STAY UP LATE TO STUDY… HELP JOE MAKE HIS DECISION.

Options Benefit Opportunity Cost

1 hour of study time

C on the test

1 hour of sleep

2 hours of study time

B on the test

2 hours of sleep

3 hours of study time

B+ on the test

3 hours of sleep

** At what point is Joe paying an added cost with little benefit? (In other words, when should Joe stop studying?)

ECONOMIC CHOICESOptions Benefit Opportunity

Cost1 hour of study time

C on the test

1 hour of sleep

2 hours of study time

B on the test

2 hours of sleep

3 hours of study time

B+ on the test

3 hours of sleep

Is it worth it for Joe to study 3 hours?At 3 hours it is no longer worth Joe’s time to continue to study. He is not getting the same results as when he studied for one hour and for 2 hours.

ASSIGNMENT: COST-BENEFIT ANALYSISDecision Benefits Opportunity

Costs1. Being on time to class2. Buying a new cell phone3. Working on Friday night4. Sleeping late

5. Playing on the Butler basketball team6. Graduating from high school7. Being late for curfew8. Not studying for a test

OPPORTUNITY COST AND PRODUCTION POSSIBILITIES CURVE VIDEO

PRODUCTION POSSIBILITIES CURVE

p. 206 in manual

PRODUCTION POSSIBILITIES CURVE Productivity: the degree to which resources

are being used efficiently to produce goods and services.

Production Possibilities Curve: graph that shows alternative ways to use an economy’s resources.

Draw this in your notes

PRODUCTION POSSIBILITIES CURVE Production Possibilities Frontier: line on

the production possibilities curve that shows maximum possible output for an economy.

**growth in an economy can cause a shift in the production possibilities curve**

Draw this in your notes

PRODUCTION POSSIBILITIES CURVE

Underutilization: using fewer resources than an economy is capable of using.

*A

Incentive: a reward offered to try to persuade people to make certain economic actions.

Freakonomics: The Grade ExperimentHow A Middle School Principal Convinced Students to Come to School

PRODUCTION POSSIBILITIES CURVE

Other Important Vocabulary:

Non-Renewable resources: a resource that cannot be replaced once it is used (ex: fossil fuels, coal, oil, etc).

Renewable Resources: a resource that is capable of being naturally restored or replenished (ex: trees).

PRODUCTION POSSIBILITIES CURVE

Other Important Vocabulary:

Consumer: a person who buys or uses goods and services.

Producer: a person who makes goods and services available to consumers.

PRODUCTION POSSIBILITIES CURVE Other Important Vocabulary:

Wage: the payment for the service of one unit of labor, usually per hour.

Salary: a fixed income which is usually paid on a weekly, biweekly, or monthly basis.

ASSIGNMENT P. 207 - CLASS WORK Create a production

possibilities curve using the following data.

Watermelons (millions of tons)

Shoes(millions of pairs)

0 15

8 14

14 12

18 9

20 5

21 0

ASSIGNMENT

0

2

4

6

8

10

12

14

16

0 10 20 30

Series1

Watermelons

Shoes

ASSIGNMENTWhat is the opportunity cost of choosing to produce the combination of goods shown at point c (14, 12) instead of that shown at point d (18, 9)?

0

2

4

6

8

10

12

14

16

0 10 20 30

Series1

ASSIGNMENT If this society were to

invest in newer technologies, what would happen to this production possibilities curve?

If this economy were to produce a combination of 5 million tons of watermelons and 8 million pairs of shoes, it would be producing at a point of underutilization. Label the point (5,8) as point g.

0

2

4

6

8

10

12

14

16

0 10 20 30

Series1

CLASSWORK AND HOMEWORK “Scarcity, Decision Making, Opportunity

Cost Scenarios” p. 208 in manual

18.2, p. 204 “Making Economic Choices”

WARM-UP QUESTIONS Name an example of a need. Name an example of a want. What is the difference between a good and a

service? What is the goal of economics? What are the 4 Factors of Production? Under

each one, list the factors of production used to make this candy bar. So Natural Resources: Cocoa beans to make chocolate, etc….