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Economics--

Study of how people try to satisfy unlimited and competing wants through the use of scarce resources. Economics--. Dreaded Disease Scenario.

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Economics--

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  1. Study of how people try to satisfy unlimited and competing wants through the use of scarce resources Economics--

  2. Dreaded Disease Scenario You are on an island that is periodically struck by a “dreaded disease” the affects only children. You know the disease strikes randomly and affects 80% of the island’s child population. There is a preventative antidote that reduces the chance of death if taken before the disease strikes. • 0 doses of antidote= 90% chance of dying • 1 dose of antidote= 10% chance of dying • 2 doses of antidote= 8% chance of dying • 3 doses of antidote= 6% chance of dying • 4 doses of antidote= 5% chance of dying • After 4 doses, there is no further effects…remains 5% d/r Suppose there are 1000 children on the island with 1,000 available doses. Need to act immediately… HOW ARE YOU GOING TO GIVE OUT THE DOSES?

  3. Solutions • How does “scarcity” effect situation? • Consider the different market methods…command, free-market, equal? • What is the best method of distributing for the most people? • Benefits for families? For pharmaceutical companies? • This is economics

  4. Exit Slip • In your own words, compose a definition to the term “economics” • Consider everything we have learned today and the mind set needed to think this way • I will collect, put your name on paper

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