Transcript 11/27 Warm-up Questions

11/21 WARM-UP QUESTIONS
Put name, date, and period on 18.1/19.1 and pass
forward.
1. A business owner is an example of which factor
of production?
2. What factor of production includes money and
man-made materials needed to produce an
item?
Bonus Question:
To whom did the Charlotte City council announce it
was going to give $87.5 million? What does the
Council expect in return?
GRAMMAR LESSONCOMPLETE SENTENCES!
A sentence require a subject and a predicate (the
action). EX. Willie Grimes was in prison because
he was found guilty of raping a woman.
 Sentences cannot begin with “because” (unless
it’s an introductory clause.) Sentences definitely
can’t begin with “cause,” or “b/c” BECAUSE those
aren’t words.
 Sentences cannot end with a preposition.
 A good sentence in a subject class will repeat the
question.

FACTORS OF PRODUCTION
1.
REVIEW:
Joe is starting a cleaning service. He has
an office space, water, cleaning materials
and money to pay his initial costs. Which
factor of production is missing?
Land
b. Labor
c. Capital
Entrepreneurship
a.
d.
2. Which factor of production includes all
human-made materials needed to
produce an item?
a. Capital
b. Entrepreneurship
c. Labor
d. Land
3. What is the basic economic concept that
indicates there is always going is to be
wants not fulfilled?
a. Inflation
b. Rationing
c. Scarcity
d. Trade-off
WHICH FACTOR OF PRODUCTION?
1) oil
2) a master’s degree
3) making a sandwich
4) screwdriver
5) Bill Gates
6) 20 years of being a plumber
7) soil
8) building
9) a robot
10) designing software
FACTORS OF PRODUCTION
Give as many examples as you can for each
factor of production seen in the clip.
1. Land
2. Labor
3. Capital- Physical and Human
4. Entrepreneur
Unwrapped- Nerds
Unwrapped- Sugar Sugar Handmade
Lollies
ECONOMIC CHOICES P. 205
 Trade-off
– an alternative we sacrifice
when we make a decision.
Ex. You want money to pay for gas but you
also want to play football. You choose to
get a job rather than playing football.
 What is the trade-off?
 Why do you have to decide between
playing football and working?
ECONOMIC CHOICES
Countries must make choices each day –
economists (one who studies economics) describes
the trade-off countries face by the example of
“GUNS OR BUTTER”
 If a country produces more military goods (guns)
then the country has fewer resources to devote to
consumer goods. (butter)

ECONOMIC CHOICES
 Can
a country make unlimited amounts of
guns AND butter?
 NO!!!!!!…. remember, resources are
limited!
 Take steel for example, if the country is
using steel to make weapons, then that
steel cannot be used to make equipment
needed to produce butter.
ECONOMIC CHOICES
 Opportunity
Cost – the most desirable
alternative given up as a result of
a decision.
Ex. If you have enough money to go to
either a dinner OR a movie and you
choose the movie,
What is your opportunity cost?
OPPORTUNITY COST
What is Opportunity Cost? video
ECONOMIC CHOICES
 Example:
Basketball team vs. Job
Decision: Join the Basketball Team
Benefits?
Opportunity Cost?
Other Trade-offs?
ECONOMIC CHOICES
 Example:
Basketball team vs. Job
Decision: Get a Job
Benefits?
Opportunity Costs?
Trade-offs?
ECONOMIC CHOICES
Thinking
at the Margin –
deciding whether to use one
additional unit of some resource.
CONSIDER THIS EXAMPLE. JOE IS TRYING TO DECIDE IF HE
SHOULD STAY UP LATE TO STUDY… HELP JOE MAKE HIS
DECISION.
Options
Benefit
1 hour of
study time
2 hours of
study time
3 hours of
study time
C on the test
B on the test
B+ on the
test
Opportunity
Cost
1 hour of
sleep
2 hours of
sleep
3 hours of
sleep
** At what point is Joe paying an added cost with
little benefit? (In other words, when should Joe
stop studying?)
ECONOMIC CHOICES
Options
Benefit
1 hour of study C on the test
time
2 hours of
B on the test
study time
3 hours of
B+ on the test
study time
Opportunity
Cost
1 hour of sleep
2 hours of sleep
3 hours of sleep
Is it worth it for Joe to study 3 hours?
At 3 hours it is no longer worth Joe’s time to continue to
study. He is not getting the same results as when he studied
for one hour and for 2 hours.
ASSIGNMENT: COST-BENEFIT
ANALYSIS
Decision
1. Being on time to class
2. Buying a new cell phone
3. Working on Friday night
4. Sleeping late
5. Playing on the Butler
basketball team
6. Graduating from high
school
7. Being late for curfew
8. Not studying for a test
Benefits
Opportunity Costs
OPPORTUNITY COST AND PRODUCTION POSSIBILITIES CURVE VIDEO
p. 206 in manual
PRODUCTION POSSIBILITIES
CURVE
PRODUCTION POSSIBILITIES CURVE
Productivity: the degree to which resources are
being used efficiently to produce goods and
services.
 Production Possibilities Curve: graph that
shows alternative ways to use an economy’s
resources.

Draw this in your
notes
PRODUCTION POSSIBILITIES CURVE
Production Possibilities Frontier: line on the
production possibilities curve that shows
maximum possible output for an economy.
 **growth in an economy can cause a shift in the
production possibilities curve**

Draw this in your notes
PRODUCTION POSSIBILITIES CURVE
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Underutilization: using fewer resources than an economy is
capable of using.
*A
Incentive: a reward offered to try to
persuade people to make certain
economic actions.
Freakonomics: The Grade Experiment

How A Middle School Principal Convinced Students to Come to School
PRODUCTION POSSIBILITIES CURVE
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Other Important Vocabulary:
Non-Renewable resources: a resource that
cannot be replaced once it is used (ex: fossil fuels,
coal, oil, etc).
Renewable Resources: a resource that is capable
of being naturally restored or replenished (ex:
trees).
PRODUCTION POSSIBILITIES CURVE
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Other Important Vocabulary:
Consumer: a person who buys or uses goods and
services.
Producer: a person who makes goods and
services available to consumers.
PRODUCTION POSSIBILITIES CURVE
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Other Important Vocabulary:
Wage: the payment for the service of one unit of
labor, usually per hour.
Salary: a fixed income which is usually paid on
a weekly, biweekly, or monthly basis.
ASSIGNMENT P. 207 - CLASS WORK

Create a production possibilities
curve using the following data.
Watermelons
(millions of tons)
Shoes
(millions of pairs)
0
15
8
14
14
12
18
9
20
5
21
0
ASSIGNMENT
16
14
12
10
8
S
h
o
e
s
Series1
6
4
2
0
0
Watermelons
10
20
30
ASSIGNMENT
What is the
opportunity cost of
choosing to produce the
combination of goods
shown at point c (14,
12) instead of that
shown at point d (18,
9)?
16
14
12
10
8
Series1
6
4
2
0
0
10
20
30
ASSIGNMENT
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If this society were to invest
in newer technologies, what
would happen to this
production possibilities
curve?
If this economy were to
produce a combination of 5
million tons of watermelons
and 8 million pairs of shoes,
it would be producing at a
point of underutilization.
Label the point (5,8) as
point g.
16
14
12
10
8
Series1
6
4
2
0
0
10
20
30
CLASSWORK AND HOMEWORK
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“Scarcity, Decision Making, Opportunity
Cost Scenarios”
p. 208 in manual
18.2, p. 204 “Making Economic Choices”
WARM-UP QUESTIONS
Name an example of a need.
 Name an example of a want.
 What is the difference between a good and a
service?
 What is the goal of economics?
 What are the 4 Factors of Production? Under
each one, list the factors of production used to
make this candy bar. So Natural Resources:
Cocoa beans to make chocolate, etc….
