economics (lesson 1)

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Everyday Economics California State Standard 12.1: Students understand common economic terms and concepts and economic reasoning. Learning Objective: The purpose of this lesson is to introduce basic economic terms and have students understand what economics is, why we study it, and importance of economics in both the world and their everyday lives using real life examples.

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Post on 12-Jan-2015

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  • 1. Everyday EconomicsCalifornia State Standard 12.1: Students understandcommon economic terms and concepts and economicreasoning.Learning Objective: The purpose of this lesson is to introducebasic economic terms and have students understand whateconomics is, why we study it, and importance ofeconomics in both the world and their everyday lives usingreal life examples.

2. Apple iPhone 5 VS. Samsung Galaxy S III: Which is better?iPhone 5Galaxy SIII $199 with 2 year contract Cheaper than the iPhone! Apple / iOS Android LTE LTE Siri S voice Slim, compact design More memory 7.6mm thick, metal casing, Wider displaynon-removable battery Longer battery life Overall better camera (front- 8.6mm thick, plastic casing,facing HCD better low-light removable batteryperformance) Siri Available in black and white Available in white, black, blue, Restricted file transfers red, grey and brown More games Free file transfer Better media player 3. What is Economics? Economics is the study of choices that people make to satisfy their needs and wants. Economics is a social science. It focuses on human behavior! Why is it important? You cant have it all, so you must make choices! Economics is highly relevant to every aspect of your life. 4. Some Principles of EconomicThinking Individuals act to makethemselves as well off as possible Everything has a cost All actions have consequences(intended / unintended) Peoples choices influence thevalue of goods and services 5. 2 kinds of Economics Microeconomics is the study of choices made by individual economic actors (households, companies, individual markets). Macroeconomics is the study of the behaviors of entire economies (all the sectors of the US economy) Looking at the decision-making of an economy as a whole Examples of macroeconomic topics: unemployment, inflation, deflation, national output (GDP) 6. Economic Decision-makers Consumers are people who decide to buy things based on needs and wants. Producers are the people who make things that satisfy consumers needs and wants Simply said, consumers choose what to buy, and producers choose what to provide and how to provide it. This is the basis of all economic systems! 7. How do you make decisions? Based on goods and services or simply products. Goods are physical objects that can be purchased. Services are actions or activities performed for a fee. Some other examples? 8. Economic Resources A resource is anything that people use to make or obtainwhat they need or want. In other words, resources areneeded to produce the goods and services consumerswant. Resources are also called Factors of production A resource is only a factor of production when it is scarce orlimited. 9. Factor #1: Natural Resources Items provided by nature to produce goods and services. Only considered a factor of production when it is scarce and some payment is necessary for its use. Is air a natural resource? 10. Factor #2: Human Resources Any human effort used during production. Intellectual or physical 11. Factor #3: Capital Resources Any man-made good produced and used to make othergoods and services. Capital resources = CAPITAL GOODS + MONEY SPENT TOBUY CAPITAL GOODS 12. Capital vs. Consumer goods Business use VS. personal use Some products can be eithercapital goods or consumergoods, depending on how theyare used! Technology as a capital good(technology for business use) Technology is the use oftechnical knowledge andmethods to create new productsor make existing products moreefficiently. 13. Factor #4: Entrepreneurship The combination oforganizational abilities and risktaking involved in starting a newbusiness / creating a newproduct. Goal: To make something ofvalue (whether it be a good orservice) to maximize profits An entrepreneur must develop anew mix of the 4 factors ofproduction to create a valuableproduct. 14. Class Activity: Groups of 3-4 Relate at least 7 key terms to aLakers game at the StaplesCenter. Some questions to think about Who are the consumers / producers? What kinds of goods / services are provided? What factors of production are considered before, during and after a basketball game?