Basic Economics Bell Ringer. Today we are paper boxing. Get out a sheet of paper. Fold it so you have four boxes on the front. If you have time, write these titles in the boxes: Why Economics?, Costs and Benefits, Scarcity, Opportunity Cost .
Today we are paper boxing.
Get out a sheet of paper.
Fold it so you have four boxes on the front.
If you have time, write these titles in the boxes: Why Economics?, Costs and Benefits, Scarcity, Opportunity Cost
A Cost is something you give up in making a choice.
A Benefit is something you gain.
What would be the costs and the benefits of doing this now?
Why have you chosen to do this instead? What are the costs and benefits?
WHY MUST YOU CHOOSE?
BECAUSE OF SCARCITY
SCARCITY TELLS ME I
CAN’T DO BOTH, I
HAVE TO MAKE A CHOICE.
SINCE YOU CAN’T HAVE
EVERYTHING YOU WANT
ECONOMICS HELPS US
GET THE MOST OUT OF
WHAT WE CAN HAVE.
Have you ever heard the phrase:
“There is no such thing as a free lunch”?
THE SIGN SAYS
SO, IS IT TRULY
FREE? I MAY NOT
GIVE UP MONEY,
BUT WHAT AM I
GIVING UP BY
What is the Opportunity Cost of the following choice?
Did you all have the same answers? Why not?
Economics is the study of how people make choices. When you make a good economic decision the benefits will be greater than the costs.
He made a good decision
He made a bad decision
INCENTIVES are things such as rewards that motivate a person to do something. Punishment is meant to be a disincentive.
TAKE OUT A PIECE OF PAPER AND DRAW A LINE VERTICALLY DOWN THE MIDDLE. LABEL ONE SIDE BENEFITS AND THE OTHER SIDE COSTS. WHAT WOULD BE THE BENEFITS OF OPENING YOUR OWN BUSINESS AND WHAT WOULD BE THE COSTS?
THERE WAS A TIME WHEN THE MAJORITY OF ADULT AMERICANS SMOKED AND PEOPLE THOUGHT IT LOOKED COOL.
WE GOT EDUCATED
NOW LESS THAN 25% OF THE U.S. POPULATION SMOKES AND THE NUMBERS HAVE BEEN SHRINKING FOR DECADES. WHAT CHANGED?
When the word MARKET is said, what are some examples or images that come to mind?
What are some characteristics that all of these examples have in common?
THE WORLD’S ECONOMIES PROVIDE US WITH A LOT OF CHOICES AND THE WORLD’S SHOPPERS HAVE A LOT OF DIFFERENT INTERESTS.
IN AMERICA, WE HAVE A LOT OF FREEDOM TO DECIDE WHAT WE WANT TO DO WITH OUR LIVES AND HOW WE WANT TO SPEND OUR MONEY
WHY DOES THIS GUY MAKE $30,000,000?
WHY DOES THIS GUY MAKE $7.25?
It’s the Motorola DynaTAC 8000X , the world’s first cell phone. It went on sale March 6, 1983 and the initial price was $3995 ($9322 in current dollars). It had enough battery life for 30 minutes of talk, its memory could store 30 phone numbers, and there was a waiting list of thousands anxious to buy it.
Today we have cellular technology that allows for all kinds of communication, video streaming, and downloads with more computing power and memory
then the technology that sent all of our astronauts to the Moon. Many are given away with service contracts.
HOW DID THAT HAPPEN?
READ EACH STATEMENT BELOW AND DECIDE WHETHER THE PRICE OF THE ITEM WILL GO UP OR DOWN. ALSO, IS THIS BECAUSE OF A CHANGE IN SUPPLY OR DEMAND?