economics bell ringer tuesday, 9/4/2012

Please answer these questions in the box for Tuesday’s Please answer these questions in the box for Tuesday’s Bell Ringer. Update your table of contents for today’s Bell Ringer. Update your table of contents for today’s handouts:handouts:

Why did you sign up for this class?Why did you sign up for this class?

What do you think you know about Economics?What do you think you know about Economics?

What do you think you will learn in this class?What do you think you will learn in this class?

Today’s Handouts:Today’s Handouts:#0 – Table of Contents#0 – Table of Contents

#1 – 9/4 – Bell Ringer (9/4-9/7)#1 – 9/4 – Bell Ringer (9/4-9/7)

• Split a sheet of looseleaf paper with a neighbor and number 1-10Split a sheet of looseleaf paper with a neighbor and number 1-10

• You must find a You must find a differentdifferent person and person and write their namewrite their name next to next to the answer for each questionthe answer for each question

1.1. I worked a job doing ________________________I worked a job doing ________________________

2.2. I went downtown to the ______________________I went downtown to the ______________________

3.3. I went on a road trip to _________________________I went on a road trip to _________________________

4.4. I went to sports/band/activity camp for ______________________I went to sports/band/activity camp for ______________________

5.5. I volunteered/service learning at ________________________I volunteered/service learning at ________________________

6.6. I got on a plane and went to ____________________________I got on a plane and went to ____________________________

7.7. I met some new people from _____________________________I met some new people from _____________________________

8.8. I saved money for _________________because ____________________I saved money for _________________because ____________________

9.9. I bought a new ____________________ because ____________________I bought a new ____________________ because ____________________

10.10. My top priority this year is ____________________________________My top priority this year is ____________________________________

Opening Unit Essential Question: Opening Unit Essential Question:

Is Competition Good/Bad for Public SchoolsIs Competition Good/Bad for Public Schools??

Today’s Handouts:Today’s Handouts:#2 – 9/5 - Syllabus#2 – 9/5 - Syllabus

#3 – 9/5 – KWL Chart#3 – 9/5 – KWL Chart

Use complete sentences to write an answer to these Use complete sentences to write an answer to these questions. Explain your reasoning:questions. Explain your reasoning:

a)a)Is competition always good? Always bad?Is competition always good? Always bad?

b)b)When making a decision (purchase, college, etc.), When making a decision (purchase, college, etc.), how does competition impact your decision? how does competition impact your decision?

Today’s Handouts:Today’s Handouts:#4 – 9/6 – NPR Audio Transcript#4 – 9/6 – NPR Audio Transcript

#5 – 9/6 – NPR Audio Notes#5 – 9/6 – NPR Audio Notes



Use complete sentences to write an answer to the questions. Use complete sentences to write an answer to the questions. Explain your reasoning: Explain your reasoning:

Think about something that you spent money on. Think about something that you spent money on.

a)a)What were the benefits and the costs of this What were the benefits and the costs of this purchase decision?purchase decision?

b)b)How do these benefits/costs affect your decision?How do these benefits/costs affect your decision?

Today’s Handouts:Today’s Handouts:#6 – 9/7 – School Voucher Questions#6 – 9/7 – School Voucher Questions



Use complete sentences to write an answer to the questions. Use complete sentences to write an answer to the questions. Explain your reasoningExplain your reasoning. . Then complete the self-Then complete the self-reflection.reflection.

a)a)What are two things you learned about: What are two things you learned about: competition in schools, school choice, or vouchers?competition in schools, school choice, or vouchers?

b)b)What is one question you still have about What is one question you still have about competition in schools?competition in schools?

Today’s Handouts:#7 – 9/19 – Bell Ringer (9/19-9/21)

#8 – 9/19 – Notes Ch 1.1 (on loose leaf)

What is Economics?

Ch 1.1: How can we make the best economic choices?

BELL RINGER:

a) What are some examples of needs and wants

b) What is the difference between the two?

c) Why do we have needs and wants?

d) Why can’t we get everything we need or want?

Economics Bell RingerWednesday, September 19, 2012

Ch 1.1 How can we make the best economic choices?Ch 1.1 How can we make the best economic choices?

Get out looseleaf, Handout #8, Title: “Notes Ch 1.1 – Scarcity”Get out looseleaf, Handout #8, Title: “Notes Ch 1.1 – Scarcity”

EconomicsWednesday, September 19, 2012

NEEDS WANTS

- Draw this spectrum on your notes. Place our list of needs/wants on the spectrum. Be ready to explain your reasoning.


Get out looseleaf, Handout #8, Title: “Notes Ch 1.1 – Scarcity”Get out looseleaf, Handout #8, Title: “Notes Ch 1.1 – Scarcity”


DISCUSSION NOTES:-Why do we have Needs/Wants?

-What’s the difference between Needs/Wants?

-Can something be a Need and a Want? Will these ever change?

-Are Needs/Wants unlimited?

-Why can’t we satisfy all Needs/Wants?



WORD SPLASHBased on your prior knowledge and this discussion, write a brief paragraph connecting the following key terms:

•Scarcity• Needs/Wants•Goods/Services•Factors of Production•Resources•Limited•Happiness/Satisfaction•Utility

When done, check out your book for the year (always bring to class)

Setup Cornell Notes outline and take notes on Section 1.1 until the bell

(Due Thursday)

What is Economics? What is Economics?

Ch 1.1: How can we make the best economic choices?Ch 1.1: How can we make the best economic choices?

BELL RINGER:BELL RINGER:

a)a) Why can’t you satisfy unlimited needs and wants? Why can’t you satisfy unlimited needs and wants?

Economics Bell RingerThursday, September 20, 2012


EconomicsThursday, September 20, 2012

WORD SPLASHBased on your prior knowledge, yesterday’s discussion and the reading, write a paragraph connecting the following key terms:

•Scarcity• Needs/Wants•Goods/Services•Factors of Production•Resources•Limited•Happiness/Satisfaction•Utility



Ch 1.1 SECTION QUESTIONS: P. 7 #2-7Ch 1.1 SECTION QUESTIONS: P. 7 #2-7

a)a) You may write your answers on Handout #8 (your You may write your answers on Handout #8 (your looseleaf notes)looseleaf notes)

b)b)Answer in complete sentencesAnswer in complete sentences

c)c)Ch 1.1 Cornell Notes and Section ?s Due END OF Ch 1.1 Cornell Notes and Section ?s Due END OF CLASSCLASS


Today’s Handouts:Today’s Handouts:#9 – 9/21 – PPT Notes Ch 1.1#9 – 9/21 – PPT Notes Ch 1.1

#10 – 9/21 – Business Idea Brainstorm#10 – 9/21 – Business Idea Brainstorm




a)a) Explain how scarcity affects the factors of productionExplain how scarcity affects the factors of production

Economics Bell RingerFriday, September 21, 2012

Today’s Handouts:Today’s Handouts:#11 – 9/24 – Bell Ringer (9/24-9/28)#11 – 9/24 – Bell Ringer (9/24-9/28)

#12 – 9/24 – Ch 1.2 Notes and ?s#12 – 9/24 – Ch 1.2 Notes and ?s(looseleaf paper)(looseleaf paper)


Ch 1.2: How does opportunity cost affect our choices?Ch 1.2: How does opportunity cost affect our choices?


a)a) Write down 10 decisions you made recently Write down 10 decisions you made recently involving limited resources (time, money, factors of involving limited resources (time, money, factors of production)production)

Economics Bell RingerMonday, September 24, 2012

Ch 1.2: How does opportunity cost affect our choices?Ch 1.2: How does opportunity cost affect our choices?On Looseleaf paper, Handout #12, Title: On Looseleaf paper, Handout #12, Title: “Ch 1.2 Notes”“Ch 1.2 Notes”

EconomicsMonday, September 24, 2012

DECISION TRADEOFFS/ALTERNATIVES

MOST DESIRABLE ALTERNATIVE/

OPPORTUNITY COST


On Looseleaf paper, Handout #12, Title: On Looseleaf paper, Handout #12, Title: “Ch 1.2 Notes”“Ch 1.2 Notes”

DUE END OF CLASSDUE END OF CLASS1.1.Read Ch 1.2 (p 8-12) and complete your Concept Web Read Ch 1.2 (p 8-12) and complete your Concept Web

(p8) or Cornell Notes. You should add ovals.(p8) or Cornell Notes. You should add ovals.

2.2.Section ?s P. 12 1-8 Section ?s P. 12 1-8

3.3.Notes on Key Terms Ch 1.2 Notes on Key Terms Ch 1.2

EconomicsMonday, September 24, 2012


#14 – 9/25 – Ch 1.2 Reading Review#14 – 9/25 – Ch 1.2 Reading Review




a)a) Think of a decision you recently made (or we Think of a decision you recently made (or we discussed yesterday). Explain how needs, wants, discussed yesterday). Explain how needs, wants, scarcity and tradeoffs are related to this decision.scarcity and tradeoffs are related to this decision.

Economics Bell RingerTuesday, September 25, 2012


a)a) CLEAR DESKS FOR ECONOMICS ASSESSMENTCLEAR DESKS FOR ECONOMICS ASSESSMENT

b)b)When done with assessment, quietly organize When done with assessment, quietly organize binders, finish work due todaybinders, finish work due today

Economics Bell RingerWednesday, September 26, 2012

Today’s Handouts:Today’s Handouts:#15 – 9/27 – Decision Making Wksht#15 – 9/27 – Decision Making Wksht


a)a) Which decision would you make? Remember Which decision would you make? Remember thinking at the margin as you explain your reason.thinking at the margin as you explain your reason.


Decision Benefit Opportunity Cost

Spend $0 on food, $5 on drinks

Get 3 Gatorades, not thirsty

Very hungry

Spend $2.50 on food, $2.50 on drinks

Get 1 Gatorade, chips and fruit, not thirsty

Still pretty hungry

Spend $3.50 on food, $1.50 on drink

Get 1 Gatorade, chips, small sandwich, pretty full

Still a bit thirsty

Spend $5 on food, $0 on drink

Get $5 sandwich, very full

You are very thirsty

KITCHEN CHALLENGE:KITCHEN CHALLENGE:

a)a) You will weigh alternatives to determine most You will weigh alternatives to determine most efficient use of scarce resourcesefficient use of scarce resources

b)b) Groups decide how to use their physical and Groups decide how to use their physical and human capital and how the labor will be human capital and how the labor will be accomplished given the size of their group and the accomplished given the size of their group and the time limitstime limits

c)c) You You must design a menu with the limited must design a menu with the limited number of people in your group and time number of people in your group and time allowedallowed

d)d) Work through Day 1 Questions (finish for HW); we Work through Day 1 Questions (finish for HW); we finish Day 2 tomorrowfinish Day 2 tomorrow

EconomicsThursday, October 4, 2012

EconomicsThursday, September 27, 2012

1. Identify the Key Term

a) The principle that limited amounts of goods and services are available to meet unlimited needs and wants

b) The resources that are used to make goods and services (and what are the different types?)

c) The study of how people seek to satisfy their needs and wants by making choices

d) The process of deciding how much more or less to do for the extra/next unit of production

e) The most desirable alternative given up as a result of a decision

f) the alternatives that we give up when we choose one course of action over another

g) the total satisfaction gained from getting needs and wants

Scarcity

Factors of production: Land, Labor, Physical

Capital, Human Capital

Economics

Thinking at the margin

Opportunity Cost

Tradeoffs

Utility

1. Economics2. Tradeoffs

3. Utility4. Opportunity Cost5. Marginal Benefit

6. Scarcity7. Marginal Cost

8. Factors of Production9. Needs/Wants

10.Thinking on the Margin

Today’s Handouts:Today’s Handouts:#17 – 9/28 – Quiz #1#17 – 9/28 – Quiz #1

#18 – 9/28 – Opportunity Cost: GMO#18 – 9/28 – Opportunity Cost: GMO




a)a) Complete the self-reflection, update Table of Complete the self-reflection, update Table of Contents and turn-in Bell RingersContents and turn-in Bell Ringers

b)b) Clear your desk of everything for Quiz #1Clear your desk of everything for Quiz #1

Economics Bell RingerFriday, September 28, 2012


#19 – 10/1 – Ch 1.3 Notes and ?s#19 – 10/1 – Ch 1.3 Notes and ?s


Ch 1.3: How does a business decide what and how much to produce?Ch 1.3: How does a business decide what and how much to produce?


a)a) Imagine you and two friends are planning the Imagine you and two friends are planning the Homecoming dance. Plan who will do what to Homecoming dance. Plan who will do what to prepare for the dance. prepare for the dance.

b)b)Get out your book. Label a looseleaf #19 and title Get out your book. Label a looseleaf #19 and title “Notes Ch1.3”“Notes Ch1.3”

Economics Bell RingerMonday, October 1, 2012


Label Looseleaf paper #19 and title, “Ch1.3 Notes”. Use for all Label Looseleaf paper #19 and title, “Ch1.3 Notes”. Use for all of today and tonight’s work.of today and tonight’s work.

CASE STUDY: CAR INDUSTRY OUTSOURCING TO ASIACASE STUDY: CAR INDUSTRY OUTSOURCING TO ASIA

Read case study on P16 and answer these questions:Read case study on P16 and answer these questions:

• Why are the auto-makers moving high-skilled jobs Why are the auto-makers moving high-skilled jobs into low-cost countries?into low-cost countries?

• How might production and quality control be How might production and quality control be compromised if Nissan designs cars in Vietnam?compromised if Nissan designs cars in Vietnam?

Economics Monday, October 1, 2012


Label Looseleaf paper #18 and title, “Ch1.3 Notes”. Use for all Label Looseleaf paper #18 and title, “Ch1.3 Notes”. Use for all of today and tonight’s work.of today and tonight’s work.

BOOK WORK (DUE THURSDAY BEG. OF CLASS)BOOK WORK (DUE THURSDAY BEG. OF CLASS)

Read Ch 1.3 (p 13-18)Read Ch 1.3 (p 13-18)

• Review Key Terms (Notes and Flash Cards)Review Key Terms (Notes and Flash Cards)

• Answer CHECKPOINT QuestionsAnswer CHECKPOINT Questions

• P.14 Graph Skills #1, 2P.14 Graph Skills #1, 2

• P.18 #2-10P.18 #2-10

Economics Monday, October 1, 2012





1. 1. Think about yesterday’s case study about Nissan Think about yesterday’s case study about Nissan moving production to Viet Nammoving production to Viet Nam

a)a) What were the scarce factors of production?What were the scarce factors of production?

b)b) What was the marginal benefit of moving production?What was the marginal benefit of moving production?

c)c) What was the opportunity cost of moving production?What was the opportunity cost of moving production?

d)d) Use cost/benefit analysis to explain how Nissan made Use cost/benefit analysis to explain how Nissan made their decisiontheir decision

Economics Bell RingerTuesday, October 2, 2012

#15: Decision Making Handout

Remember, if Marginal Benefit > Marginal Cost, we should expand # of stores

(Current: Sales $25.3mm, Profit 10%)Stores Expected Sales per Store,

Year 3Expected Profits per Store,

Year 3

20 $25.5mm (>$25.3mm)

9.3%(<10%)

30 $26.9mm(>$25.3mm)

10.7%(>10%)

40 $25.9mm(>$25.3mm)

10.2%(>10%)

50 $24.7mm(<$25.3mm)

8.5%(<10%)

#16 Opportunity Cost and GMO Food#16 Opportunity Cost and GMO Food

Decision to Buy GMO Food

Benefit Cost

Before 2008 ??? -Not healthy/banned-Frankenfoods

After 2008 - GM food lower than rising corn prices (bcs oil prices rising)

-Not healthy/banned- Frankenfoods

Economics Tuesday, October 2, 2012

DECISION: DON’T BUY Benefit <Cost

DECISION: BUY Benefit >Cost

BELL RINGER: Use the following Production Possibilities CurveBELL RINGER: Use the following Production Possibilities Curve

a)a) What are the two alternatives that we may produce?What are the two alternatives that we may produce?

b)b) What is the current opportunity cost of increasing t-shirt production from What is the current opportunity cost of increasing t-shirt production from 0mm to 40mm t-shirts?0mm to 40mm t-shirts?

c)c) Where are we producing efficiently?Where are we producing efficiently?

d)d) How do we get from the red to the blue curve? What do we call that?How do we get from the red to the blue curve? What do we call that?

Economics Bell RingerThursday, October 4, 2012

To receive text reminders from Mr. Vasu To receive text reminders from Mr. Vasu for for

Economics:Economics:

Text the message @vasuecon to Text the message @vasuecon to

(720)-924-4156. (720)-924-4156.

Standard messaging rates apply.Standard messaging rates apply.


Economics Bell RingerFriday, October 5, 2012

1. Identify the Key Term

a) the use of resources in such a way as to maximize the output of goods and services

b) a line on a production possibilities curve that shows the maximum possible output an economy can produce

c) the extra cost of adding a unit

d) The most desirable alternative given up as a result of a decision

e) the use of fewer resources than an economy is capable of using

f) The process of deciding how much more or less to do for the extra/next unit of production

Efficiency (on PPF)

Production Possibilities Frontier

Opportunity Cost

Underutilization (inside/under PPF)

Thinking on the Margin

1. Prod. Possibilities Curve2. Prod. Possibilities Frontier

3. Opportunity Cost4. Marginal Benefit

5. Efficiency6. Marginal Cost

7. Underutilization8. Needs/Wants

9. Thinking on the Margin

Marginal Cost

Economics Bell RingerFriday, October 5, 2012

1. Describe a good or service you consumed recently

a) What was the opportunity cost?

b) What factors of production were used to make the good or service?

• Be specific what factor of production it is

Today’s Handouts:Today’s Handouts:#21 – 10/5 – Kitchen Challenge#21 – 10/5 – Kitchen Challenge


1. Make a production possibilities frontier on this production possibilities curve. Label your axes.

2. What is the opportunity cost of producing more than 70mm iPads?

3. What would be a point of underutilization?

4. What might cause you to be to the right of your PPF?


iPads(millions)

iPhones(millions)

0 100

25 80

50 55

70 25

100 0

0


1. Make a PPF on a PPC. Label your axes.2. How can we produce 14 Cars and 5 Trucks per worker?

3. What happens to opportunity cost as you increase production of cars per worker. Be specific.

4. What does the PPC show? How is this related to thinking at the margin?

Cars per Worker Trucks per Worker

0 10

5 9

9 7

12 4

14 00

BRING YOUR BOOKS TO CLASS TOMORROW!!!

Economics Bell RingerWednesday, October 10, 2012

Use at least 4 key terms in your answers: scarcity, needs/wants, goods/services,

efficiency, cost/benefit analysis, thinking at the margin

1. Why does every decision involve tradeoffs and opportunity cost?

2. How does a PPC show opportunity cost?

EconomicsWednesday, October 10, 2012

1. Finish the Kitchen Challenge. It is due on Thursday

2. Review for the Ch1 Test (Thursday in class)

• You are allowed one side of 3x5 index card I give you as aid for the test

• Resources:

• Handouts #8, 9, 12, 13, 19, 20

• P.19 Key Terms

• P. 20 #1-9

KITCHEN CHALLENGE: RESULTSKITCHEN CHALLENGE: RESULTS

EconomicsFriday, October 5, 2012

Group Total Money Raised Total Time Taken

EconomicsMonday, October 15, 2012

• Think of a business idea and answer the following three questions. Explain your reasoning. Use Tuesday’s BR space if you need more room.

1. What goods/services are you going to produce?

2. How are you going to produce these goods/services? (specific factors of production)

3. Who is going to consume the goods and services?


#25 – 10/15 – Ch2.1 Book Work#25 – 10/15 – Ch2.1 Book Work

EconomicsTuesday, October 16, 2012

• One of everyone’s basic needs is for food. To satisfy this need, how should the 3 economic questions be answered?

1. What goods/services should be produced?

2. How should these goods/services be produced?

3. Who is going to consume the goods and services?


Economics Bell RingerThursday, October 18, 2012

• What are the three key economic questions?

• List the five economic goals

• Describe two of the goals


• Any questions on p28?

• Finish Book Work

• Review Key Terms to study for Quiz

• Organize Binder to be checked tomorrow



#29 – Ch 2 Notes#29 – Ch 2 Notes

1. What are the three key economic questions?

2. What are the five economic goals?

1. Take out a sheet of a paper and number it #29 with the title, Chapter 2 Notes: Economic Systems

2. Quickwrite your thoughts for Why do markets exist?

3. Tear another sheet of paper into 8 equal pieces. Think of a need/want. Identify a business idea. Write down a good/service your business provides on each of the pieces

Economics ClassworkMonday, October 29, 2012

1. Create markets to exchange for your other needs/wants. The market is only open for 10 minutes.

2. Why do markets exist?


1. We need markets because most people are not self-sufficient

• We are households/consumers• Firms/producers are organizations that produce

goods/services

• Households need to trade/exchange for goods/services to satisfy our needs/wants

• This is the product market

• We also need to work and sell our scarce resources to get money to buy goods/services. This income is a factor payment

• This is the factor market2. This is the circular flow of income and output


This week’s book work (#29 Ch 2 Notes)• Key Terms• Checkpoint Questions

• Read Ch 2.2 p 29-34• P 35-36• P 39-40

• P.34 #2-5, 10

• DUE FRIDAY




1. Why do markets exist?

2. What do these words mean:1. Households/consumers2. Product market3. Factor market4. Firms/producers

Economics Bell RingerWednesday, October 31, 2012

Today’s Handouts:Today’s Handouts:#31 – 10/31 – Activity of Firms#31 – 10/31 – Activity of Firms

1. Why do households/entrepreneurs specialize? How can specialization benefit both buyers and sellers in a free market economy?

2. Explain what you remember about the Circular Flow of Income and Output?

Economics Exit TicketWednesday, October 31, 2012

1. How do incentives influence the decisions we make?

2. How are incentives and self-interest related to the free market?

3. How are free market economic systems self-regulated?

Provides reward or punishment; motivation to do certain things

Self-interest provides the incentive for households to look for lowest prices and firms to look for highest prices, so they get the highest profits.

Self-interest means no one will pay more than they are willing.

Competition means firms cannot charge unfairly high prices, earning unfair profits, since others will enter the business.

Economics Bell RingerThursday, November 1, 2012

Today’s Handouts:Today’s Handouts:#33 –11/01 – Quiz Ch 2.2#33 –11/01 – Quiz Ch 2.2

• How does the government help provide for economic equity?

• How does the government pay for its programs?

#29 – Ch 2 Notes (continued)Economic Systems and the 5 Goals

• Free Market Economy

• No government; markets control all (Hong Kong, Dubai, markets for illegal goods)

• Private property – households own factors of production

• Values: Growth, Efficiency, Freedom, Security

• Doesn’t Value: Equity


• We need government to provide for equity

• Centrally Planned Economy

• Only government answers all 3 economic questions

• No individual choice: opposite of Free Market (China 1950s, Cuba, North Korea)

• Values: Equity, Security

• Doesn’t Value: Freedom, Efficiency, Growth


• Mixed Economy

• Individuals mostly answer the 3 economic questions; Markets very important

• Some government to provide safety nets and other services (US, Europe, India, MOST OF THE WORLD)

• Values vary from country to country

• US is more free mkt: efficiency, freedom, growth

• India is more centrally planned: equity, growth

Economics Bell RingerFriday, November 2, 2012

• List the 5 economic values or goals

• Choose one economic system and explain how they value or don’t value the 5 goals:

1. Free Market Economic System

2. Centrally Planned Economic System

Today’s Handouts:Today’s Handouts:#34 –11/02 – Econ Systems and Goals Chart#34 –11/02 – Econ Systems and Goals Chart

#34: Economic Systems and the 5 Goals

Economic System

Free Market Economy

Mixed Economy

Centrally Planned

Who Answers 3 ?s

Individuals Individuals and Government

Government

Role of Government

None Small to Large Controls ALL the Economy

Goals Valued FreedomEfficiencyGrowthSecurity

All 5

Different in Difft countries

EquitySecurity

Goals Not Valued

Equity FreedomEfficiency, Growth

Examples Hong Kong US, Germany, India, Brazil

North Korea, Cuba

• The degree of government intervention in the marketplace varies among nations.

– Choose two nations on this continuum.

– Based on the diagram, write one sentence for each nation describing how its economic system differs from that of the United States

– Why is China a little bit farther to the right on the diagram than Cuba?

#34: Economic Systems and the 5 Goals

What might cause an increased demand for food stamps?

-Teens dropping out-Price food rises-Increased population rates-Lower incomes-Unemployed/Lack of Jobs-Easier accessibility

What might cause an increased demand for food stamps?

-Supply and Demand of food-Losing your job/Increased unemployment-Upcoming recession-Bigger families/households (more mouths to feed)/less birth control-Greater obesity-Inflation (prices rise)-Other costs rise (rents, etc.)

• What is the opportunity cost of producing 5mm iPhones

• Where is Apple producing efficiently? Give an example of a point of underutilization of resources

• How could Apple get to the pink PPF? What do we call this in economics?

Apple Production Possibilities Frontier

0

5

10

15

20

25

30

0 5 10 15 20 25iPhones (millions)

iPod

s (m

illio

ns)

1. Why aren’t all workers paid the same amount in factor payments for the resources they provide

2. What types of investment on the part of manufacturers result in growth?

3. How does this improve a nation’s standard of living?

• What is at least one thing you learned during yesterday’s simulation?

• What was the biggest problem in the economic system we had during yesterday’s simulation?

• Quietly finish your reflection questions from yesterday if not completed

• List three examples of ways the US or Illinois government provides or regulates how goods and services are provided?

• List the 5 economic values or goals

• Choose one and explain how they value or devalue the 5 goals:

• Free Market Economic System

• Centrally Planned Economic System

• Sweden has a mixed economy that blends a free market with socialism. Swedes pay twice the amount of taxes as Americans. As a result, Swedes pay very little for medical care and everyone gets at least 30 days vacation every year. • Compare and contrast the US and Swedish economic systems. Which is more beneficial for workers? (Use Key Terms and think of 3 Questions and Economic Goals)

• Log on to computers and EdModo and download today’s assignment (HANDOUT #30)

• The degree of government intervention in the marketplace varies among nations. – Choose two nations on this continuum. Based on the diagram,

write one sentence for each nation describing how its economic system differs from that of the United States

– Why is China a little bit farther to the right on the diagram than Cuba?

1. How do Households and Firms interact in the Factor Market? In the Product Market?

2. Suppose you are the owner of a beauty salon. Give two specific ways your business might interact with households?

3. How might the introduction of government into the Circular Flow model affect your business?

• Clear your desk of all materials except for scratch paper and pen/pencil

• Quietly wait for instructions from Mr. Vasu

• Reflect on how you prepared for yesterday’s test:• Write one thing you did that prepared you well for the

test• Write two things you should do to be better prepared for

future Econ tests

• Put your post-it notes on the Economic System Continuum

• Go get your textbook from your locker if you don’t have it

• Complete the Warm-Up in your Chapter 3 Packet (handout for today)

• Write two characteristics of public goods

• Complete Bell Ringer Reflection for this week

Public School Construction•Proposal: A new high school for half the 5,000 students in the existing overcrowded high school•Funding: A federal government loan, paid back by increasing local taxes 10 percent annually for 12 years

• What are the benefits to the community?• What are the costs to the community?

•Complete Bell Ringer Reflection for this week

1. What am I? (Identify the key term; try not to use notes)

a) a situation in which the free market, operating on its own, does not distribute resources efficiently

b) a shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay

c) someone who would not be willing to pay for a certain good or service but who would get the benefits of it anyway if it were provided as a public good

d) an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume

e) a good or service that can be used by any number of consumers without reducing the benefits to any single consumer

Market failure

Public good

Free Rider

Externality (Positive/Negative) – from public and private goods

Non-Rival Good

• Have HW (Public Goods Handout) Ready to be Stamped

• Pick 2 of these infrastructure projects and identify how they are an example of a market failure (think why they are public goods, may suffer from the free-rider problem or have any positive/negative externalities and who’s going to pay for/build it if the government doesn’t?)

• More train service is needed on the south side as the CTA Red Line ends at 95th street

• Uplift needs a better field in the back with a real track

• Chicago has way too many potholes and they need to be fixed!

• Kids need more basketball courts and baseball fields to play on and keep them off the streets

• If there were no “sin” taxes (prices were lower), how and why would consumption of cigarettes or gas change?

• Would the change in consumption have any costs to society? • Give an example of a cost to society?• What do we call a benefit/cost to someone who did not

produce or consume a good?

• Write any questions related to this week’s material (Public Goods)

• Quietly work on something from another class or related to your college/scholarship apps


These are Chapter 1 Termsa) The principle that limited amounts of goods and services

are available to meet unlimited needs and wants

b) The resources that are used to make goods and services (and what are the different types?)

c) The use of resources in such a way as to maximize the output of goods and services

d) The process of deciding how much more or less to do for the extra/next unit of production

e) The most desirable alternative given up as a result of a decision

f) A graph that shows alternative (two) ways to use an economy’s productive resources

Scarcity

Factors of production: Land, Labor, Physical Capital, Human Capital

Efficiency

Thinking at the margin

Opportunity Cost

Production Possibilities Curve


These are Chapter 2 Termsa) The amount of money a business receives in excess of its

expenses

b) The process of bringing new methods, products or ideas into use

c) Any arrangement that allows buyers and sellers to exchange things

d) An organization that uses resources to produce a product or service, which it then sells

e) The area of exchange in which firms purchase the factors of production from households

f) The hope of reward or fear of penalty that encourages a person to behave in a certain way

g) What are the 5 main economic goals?

Profit

Innovation

Market

Firm

Factor Market

Incentive

Growth, Efficiency, Security, Freedom, Equity


a) The study of how people seek to satisfy their needs and wants by making choices

b) A person or group of people who provide the factors of production

c) The arena of exchange in which households purchase goods and services from firms

d) The struggle amongst producers for the dollars of consumers

e) An economic system where the government makes all decisions on the three key economic questions.

f) The process of selling businesses or services operated by the government to individual investors, and then allowing them to compete in the marketplace

g) What are the 3 key economic questions?

Economics

Product Market

Households/Consumers

Competition

Centrally Planned or Command Economy

Privatization (a form of economic transition)

What are we going to produce? How are we going to produce? Who is going to consume?

economics bell ringer tuesday, 9/4/2012

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