What we’re doing today:What we’re doing today:Warm-Up SongWho is Mr. BensonAnimal Trading SimulationLecture/DiscussionInauguration DiscussionBooks

DAILY WARM-UPDAILY WARM-UPWrite 1-2 paragraphs (2 maximum) in response to the prompt.

Rhymefest – Devil’s PieRhymefest – Devil’s PieLook; times is hard, life is hard

I lost my job, baby oh my GodMy wife is nauseous, she pregnant as hellMy mistress on the cell sayin she gon' tellMy Uncle in the cell sayin he want bailMy granddaddy can't see, claimin he need BrailleI'm fightin for strength, in the street grindin for centsI know I'm ahead of my time but I'm behind on my rent

Rhymefest – Devil’s PieRhymefest – Devil’s PieAssignment:Economics studies the concept of

scarcity (limited resources) and how it is the basis for trade, among other things. Analyze Rhymefest’s “Devil’s Pie,” and how he describes the impact of economics on himself and those around him. What message is he trying to get across? Do you agree or disagree with him?

UNIT 1 CHAPTER 1UNIT 1 CHAPTER 1

Animal trading gameAnimal trading game

Animal Trading GameAnimal Trading GameStep 1 – Divide into 6 groups.Step 2 – Name your group/zoo.Step 3 – Design your group’s logo.

Step 4 – Coordinate your group; create roles, record/divide resources, etc.

Animal Trading GameAnimal Trading GameGoal: Meet all of your Zoo’s needs.

Secondary Goal: Have the most money at the end of the game.

Tertiary Goal: Determine the Exchange Rate between Ecos and Fins.

Get all of the goals and win a prize!

Trade! 35 Minutes LeftTrade! 35 Minutes Left

Auction is Open – 30 Minutes Auction is Open – 30 Minutes LeftLeft

Auction is Open – 20 Minutes Auction is Open – 20 Minutes LeftLeft

Auction is Open – 10 Minutes Auction is Open – 10 Minutes LeftLeft

Trading Ends!Trading Ends!

Groups Announce ResultsGroups Announce Results

Do we have a winner?Do we have a winner?

What did we learn?What did we learn?Why do markets exist?

◦Scarcity.◦Means of exchanging goods and

services.◦Means of meeting

individual/collective’s needs and wants.

A market outside of the walls of Tangier, by Louis Comfort Tiffany

What did we learn?What did we learn?Some animals are in surplus,

shortage, or equilibrium◦Shortage (hard to find): lion, tiger,

bear, monkey◦Equilibrium: camel, wolf, seal,

walrus◦Surplus (easy to find): aardvark,

buffalo, snake, gator

What did we learn?What did we learn?Scarcity:

◦All Resources are limited◦People compete for limited resources◦Scarcity exists because people

cannot satisfy their every want.◦Unlike scarcity, shortages are

temporary.

Types of trade used:Types of trade used:◦Barter: exchanging animals for animals.◦Benefits:

Useful where no currency exists/is unstable. Common in small communities, usually leads

to currency economies.◦Downsides:

Makes trade more difficult in more situations. Buying/Selling become the same activity. “Double coincidence of wants”. Abstraction difficult – debt, credit, etc.

Types of trade used:Types of trade used:

◦Currency Benefits: Makes trade more efficient, versatile. Buying and Selling become separate

activities. Ability to trade regardless of possessions.

◦Downsides: Inflation

What did we learn?What did we learn?Opportunity Cost:

◦“The most desirable alternative given up as the result of a decision.”

What did we learn?What did we learn?Exchange rate = Determined by

the market (you).Real Exchange Rate:1770 FINs = 675 ECOs, or~2.6 FINs = 1 ECOEach group in Ecoland began

with 675 EcosEach group in The United States

of Fin began with 1700 Fins

LinksLinkshttp://en.wikipedia.org/wiki/Trade http://en.wikipedia.org/wiki/Micro

economics

http://en.wikipedia.org/wiki/Neoclassical_economics