Opportunity CostChoosing which city to live in example:If you were about to move and you had a choice between Seattle and Atlanta and you picked Atlanta your opportunity cost would be if you moved to Seattle instead.

Opportunity Cost

• Choosing where to go to collage example:• So, say you wanted to go to NC State or UNC,

and you picked NC State your opportunity cost would be UNC.

DECISION!Going to Collage Getting a Job Out Of High School

Should I go to collage? Should I get a job right out of high school?

I can go, not go and get a job, go later, or just not go at all

I could get a job right out of high school, or I can go to collage and then get a job

If I go I can get a better job although if I don’t go I will not have to do work, but if I don’t go I will not get a good job

If I get a job now I can start to make money but not as much if I went to collage. If I went to collage I would get a better job but I would have to do more work.

I choose to go! I choose to go right into a job

I just went to collage! I now have a job at a gas station

That was a very good choice That choice turned out bad because I'm really poor

Another Decision!1.Should we drive to Florida 6.Our choice was convenient 2.We could drive or we could fly

3.If we drive we can bring whatever we want but it will cost more and it will take more time. If we fly we can go faster but maybe loose our luggage4.We choose to fly5.We flew to Florida

Command Economy

• Command Economy-An economy where supply and price are regulated by the government.

• Lebanon, Saudi Arabia, and Turkey are command economies

• An advantage of a command economy is there is more control and equality. Disadvantages are lack of freedom and very poor people.

Market Economy

• Market Economy-The recourses are owned and controlled by the people of the country.

• Mexico uses a Market economy• One advantage of having a market economy is

people are rewarded with profit when they offer the products and service consumers want. A disadvantage would be some people may not spend money properly and go bankrupt.

Capitalism

• Capitalism-private ownership of resources by individuals rather than by the government.

• The U.S.A is a capitalism!• The advantages of a capitalism are people are

free to decide what they want to buy. A disadvantage is that individual freedom is extremely vital to the US economy.

Communist Economy

• a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state.

• Cuba is indeed a communism• One advantage of having a communist

economy is that you can always be equal to everyone else. A disadvantage is that you can never become rich or free