welcome to economics mr. potter and mr. daugherty first, second, third, fourth, and seventh periods
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Welcome to Economics
Mr. Potter and Mr. DaughertyFirst, Second, Third, Fourth, and Seventh Periods
EconomicsAugust 3, 2015
1. Why is it necessary to take a course in economics? 2. What exactly is economics the study of? 3. What are some of the reasons people trade? 4. What are some of the reasons people work? Why do
people make products? Why do some people in business take risks? Why do you come to school?
5. Can you satisfy all your wants? 6. List four companies that sell products in the US.
Economic Theme #1
Gain from TradeParties trade voluntarily when they
expect to gain.People trade because they need one
item and another person or country can provide this item.
Economic Theme #1
ExamplesClothing from China.Oil from Saudi Arabia.Cars from Japan.
Economic Theme #2
IncentivesParties respond predictably to positive
and negative incentives.An expectation that encourages people
to behave a certain way.Hope of reward or a fear of punishment
Economic Theme #2
Examples Incentive of good deals will make a
consumer buy more. Incentive of profit so you take a risk to start a
business. Incentive of a good job so you stay in school. Incentive of a new car so you save money.
Economic Theme #3
InterdependencyA decision make by one party has
intended and unintended consequences on other parties.
When events in one country’s economy influence other economies as well.
Economic Theme #3
ExamplesDrought in Costa Rica hurts coffee
bean crop.Major hurricane in the Gulf of Mexico
damages oil refineries.Disease destroys chicken crop, egg
prices rise.
Economic Theme #4
ScarcityScarcity of all resources forces parties
to make choices and that these choices always incur a cost.
Limited quantities of resources to meet unlimited wants.
Economic Theme #4
ExamplesThe list is endless!!!Not the same thing as a shortage.Land might not be considered a scarce
resource.
Stock Market Game
List five companies that sell products in the United States.
Ticket Out the Door
1. What is economics the study of? 2. What will people do when they expect to gain
something? 3. When Hurricane Katrina damaged oil
refineries, this was an example of which theme? 4. Saving money to buy a nice car is an example
of which economic theme? 5. List three companies you might purchase
stock in when we play the stock market game.
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