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BELL RINGER

BELL RINGER. In your JOURNALS, define the word “ INCENTIVES. ” Remember to draw your “ frame of reference. ”. SSEPF1a. SSEPF1 The student will apply rational decision making to personal spending and saving choices.

vivian-wilkerson
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BELL RINGER

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  1. BELL RINGER • In your JOURNALS, define the word “INCENTIVES.” Remember to draw your “frame of reference.”

  2. SSEPF1a • SSEPF1 The student will apply rational decision making to personal spending and saving choices. • a. Explain that people respond to positive and negative incentives in predictable ways.

  3. Economic Decision Making Unit 1 Lesson 2 (ECON-U1-L2): Incentives and Rational Decisions

  4. GROUP ACTIVITY • Get into groups of 3-4. Please note that next week groups will be assigned, not chosen.

  5. WHO WANTS A BLOW POP? • How many of you would like this item today? • One student in each group will leave today with a blow pop in hand.

  6. SCARCITY • The blow pops in my possession are scarce because they are both limited and desired by the students in this class. • Both individuals and societies must devise ways to deal with this problem of scarcity. • This is exactly what you will be doing in today’s lesson. • I have only a limited number of each item to allocate today; there are no more.

  7. HOW DO I DECIDE? • How will I determine who among you will receive a blow pop? • In your groups, generate a list of all the different ways you can think of for me to determine who gets the item in your group. • You have 5 minutes….

  8. WAYS TO DECIDE… • Most push ups • Lightest phone • Highest GPA • Youngest • Oldest • Rock paper scissors • Fired! • Longest hair • First in class • Most socks • Biggest foot • Best cook • Jump farthest • Talks most • Longest nails • ABC’s backward • Best job • Shoots best • Band • Laughs most • Most fb friends • Most tweets • Shortest

  9. WAYS TO DECIDE… Eeny meeny miny moe Ugliest Braces Smallest foot Most skilled Good at board games Best grades Best baby stuff Lolli law Best personality Volunteers most Best attitude • Rock paper scissors • most talented • Youngest • Pick a card • Sky blue • Biggest shoe • Fastest • Draw straws • Most athletic • funniest • Pick a number 1-10

  10. OPPORTUNITY COST • Economics stresses the importance of people making decisions in a careful way. • This allows people to know what they are giving up when they choose among alternatives. • The best alternative that you give up when you make a decision is called the opportunity cost. • Economics can provide a great way to help your group decide how to allocate your good.

  11. THE PACED DECISION-MAKING MODEL • Now that the class has helped me create a list of possible allocation methods, you will use the PACED model to determine who will really get the blow pop good in your group.

  12. P.A.C.E.D. • P. What is the PROBLEM? • What decision are your trying to make? • What is the issue at hand? • A. What are the ALTERNATIVES? • What actions are you considering? • What options are available to you in this decision? • C. What are the CRITERIA important to the decision? • What characteristics are you looking for in your result? • Which criteria are more important than others? How do you rank them? • E.EVALUATE each alternative. • Evaluate each alternative on the basis of each criterion. • Give each alternative a plus (+) or a minus (-) according to how well it meets each criterion. • D. Make a DECISION. • Calculate the net value of each alternative; which alternative best meets your highest-ranking criteria? • What do you gain with each alternative? • What do you give up with each alternative?

  13. So… • What is the problem… • Deciding who will get the good in each group. • What are the alternates… • Everything the class suggested that we listed on the board.

  14. PACED DECISION-MAKING GRID • To streamline the PACED process, each group should select the five alternatives from the class list that they believe to be the best. • You should list these five alternatives in the space provided on your handout.

  15. Priorities… • What criteria are important to you in making this decision? • Which four criteria do you deem most important? • List these criteria at the top of your decision-making grids. • How should these criteria be ranked? • Rank order the criteria on your grids by giving a score of 1 to your top criterion, 2 to your next most important and so on.

  16. EVALUATE THE ALTERNATIVES • Now, tell me how you should evaluate the alternatives. • If your group decides that an alternative successfully meets a criterion, you should put a plus (+) in the appropriate square on your grid. • If you feel an alternative does not meet a certain criterion you should put a minus (-) in that box. • Evaluate each of your five alternatives on the basis of each of your four criteria.

  17. DECISION TIME! • Calculate the net value (number of pluses less number of minuses) of each alternative on your grid. • Then allocate the item to the person you chose through your decision-making process. • Explain who got the good and how the decision was made. What criteria was most important to you in making your final decision?

  18. ECONOMIC SYSTEMS ACTIVTY… • There are different ways of classifying economic activities. • Each type of economic system represents a different set of rules for economic behavior. • Knowing the different classifications will help you recognize differing forms of economic activity. • Societies often have similar decisions to make regarding goods and services such as health care, environmental activity, education and housing.

  19. ECONOMIC SYSTEMS • Traditional Economies • Market Economies • Command Economies

  20. TRADITIONAL ECONOMIES • Decisions about what to produce, how to produce and to whom goods and services will be allocated generally repeat decisions made in earlier times or by previous generations. • Continuity and stability are valued in economic life.

  21. MARKET ECONOMIES • Individuals and businesses own productive resources and make the decisions about what to produce, how to produce and to whom goods and services will be allocated. • The market prices that result from individual and business decisions act as signals to producers, telling them what buyers want. • Goods and services are allocated on the basis of prices.

  22. COMMAND ECONOMIES • An authority such as a feudal lord, a government agency or central planners decide what to produce, how to produce and to whom goods and services will be allocated.

  23. WHERE DO YOU FALL? • Categorize the group-allocation decisions you made by the type of system your process most closely resembles.

  24. CLOSURE • The PACED model is a very useful tool that you can use to make decisions about important issues affecting society and about personal problems that affect your own life. • Personal problems include what to do with spare time on the weekend, which movie to see, which part-time job to take or where to go to dinner before the prom. • Social problems include issues such as which immigration policy a nation should adopt, whether a city should raise its property taxes, whether a school district should build a new high school or what the legal minimum drinking age should be.

  25. EXIT TICKET • As a class, lets select a current economic issue of interest to us. • Groups should use the PACED model to make a decision about the issue. • Compare and discuss your group’s results to that of the others and review the steps of the economic decision making process.

  26. EXIT TICKET/ESSENTIAL Q. • ANSWER THE FOLLOWING IN YOUR JOURNALS OR ON A SEPARATE SHEET OF PAPER (remember get Journals for Monday!) • WHAT ARE INCENTIVES? HOW DO PEOPLE RESPOND PREDICTABLY TO NEGATIVE AND POSITIVE INCENTIVES?

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