Transcript Economics Bell Ringer 9/7/2011

Please answer these questions in the box for Tuesday’s
Bell Ringer. Update your table of contents for today’s
handouts:
Why did you sign up for this class?
What do you think you know about Economics?
What do you think you will learn in this class?
Today’s Handouts:
#0 – Table of Contents
#1 – 9/4 – Bell Ringer (9/4-9/7)
•
•
Split a sheet of looseleaf paper with a neighbor and number 1-10
You must find a different person and write their name next to
the answer for each question
1. I worked a job doing ________________________
2. I went downtown to the ______________________
3. I went on a road trip to _________________________
4. I went to sports/band/activity camp for ______________________
5. I volunteered/service learning at ________________________
6. I got on a plane and went to ____________________________
7. I met some new people from _____________________________
8. I saved money for _________________because ____________________
9. I bought a new ____________________ because ____________________
10. My top priority this year is ____________________________________
Opening Unit Essential Question:
Is Competition Good/Bad for Public Schools?
Use complete sentences to write an answer to these
questions. Explain your reasoning:
a) Is competition always good? Always bad?
b) When making a decision (purchase, college,
etc.), how does competition impact your
decision?
Today’s Handouts:
#2 – 9/5 - Syllabus
#3 – 9/5 – KWL Chart
Opening Unit Essential Question:
Is Competition Good/Bad for Public Schools?
Use complete sentences to write an answer to the questions.
Explain your reasoning:
Think about something that you spent money on.
a) What were the benefits and the costs of this
purchase decision?
b) How do these benefits/costs affect your decision?
Today’s Handouts:
#4 – 9/6 – NPR Audio Transcript
#5 – 9/6 – NPR Audio Notes
Opening Unit Essential Question:
Is Competition Good/Bad for Public Schools?
Use complete sentences to write an answer to the questions.
Explain your reasoning. Then complete the self-
reflection.
a) What are two things you learned about:
competition in schools, school choice, or
vouchers?
b) What is one question you still have about
competition in schools?
Today’s Handouts:
#6 – 9/7 – School Voucher Questions
Economics Bell Ringer
Wednesday, September 19, 2012
What is Economics?
Ch 1.1: How can we make the best economic choices?
BELL RINGER:
a) What are some examples of needs and wants
b) What is the difference between the two?
c) Why do we have needs and wants?
d) Why can’t we get everything we need or want?
Today’s Handouts:
#7 – 9/19 – Bell Ringer (9/19-9/21)
#8 – 9/19 – Notes Ch 1.1 (on loose leaf)
Economics
Wednesday, September 19, 2012
Ch 1.1 How can we make the best economic choices?
Get out looseleaf, Handout #8, Title: “Notes Ch 1.1 – Scarcity”
NEEDS
WANTS
- Draw this spectrum on your notes. Place our list of
needs/wants on the spectrum. Be ready to explain
your reasoning.
Economics
Wednesday, September 19, 2012
Ch 1.1 How can we make the best economic choices?
Get out looseleaf, Handout #8, Title: “Notes Ch 1.1 – Scarcity”
DISCUSSION NOTES:
-Why do we have Needs/Wants?
-What’s the difference between Needs/Wants?
-Can something be a Need and a Want? Will these ever change?
-Are Needs/Wants unlimited?
-Why can’t we satisfy all Needs/Wants?
Economics
Wednesday, September 19, 2012
Ch 1.1 How can we make the best economic choices?
WORD SPLASH
Based on your prior knowledge and this discussion, write a brief paragraph
connecting the following key terms:
•Scarcity
• Needs/Wants
•Goods/Services
•Factors of Production
•Resources
•Limited
•Happiness/Satisfaction
•Utility
When done, check out your
book for the year (always
bring to class)
Setup Cornell Notes outline
and take notes on Section
1.1 until the bell
(Due Thursday)
Economics Bell Ringer
Thursday, September 20, 2012
What is Economics?
Ch 1.1: How can we make the best economic choices?
BELL RINGER:
a) Why can’t you satisfy unlimited needs and wants?
Economics
Thursday, September 20, 2012
Ch 1.1 How can we make the best economic choices?
WORD SPLASH
Based on your prior knowledge, yesterday’s discussion and the reading, write
a paragraph connecting the following key terms:
•Scarcity
• Needs/Wants
•Goods/Services
•Factors of Production
•Resources
•Limited
•Happiness/Satisfaction
•Utility
Economics Bell Ringer
Thursday, September 20, 2012
What is Economics?
Ch 1.1: How can we make the best economic choices?
Ch 1.1 SECTION QUESTIONS: P. 7 #2-7
a) You may write your answers on Handout #8 (your
looseleaf notes)
b)Answer in complete sentences
c)Ch 1.1 Cornell Notes and Section ?s Due END OF
CLASS
Economics Bell Ringer
Friday, September 21, 2012
What is Economics?
Ch 1.1: How can we make the best economic choices?
BELL RINGER:
a) Explain how scarcity affects the factors of production
Today’s Handouts:
#9 – 9/21 – PPT Notes Ch 1.1
#10 – 9/21 – Business Idea Brainstorm
Economics Bell Ringer
Monday, September 24, 2012
What is Economics?
Ch 1.2: How does opportunity cost affect our choices?
BELL RINGER:
a) Write down 10 decisions you made recently involving
limited resources (time, money, factors of production)
Today’s Handouts:
#11 – 9/24 – Bell Ringer (9/24-9/28)
#12 – 9/24 – Ch 1.2 Notes and ?s
(looseleaf paper)
Economics
Monday, September 24, 2012
Ch 1.2: How does opportunity cost affect our choices?
On Looseleaf paper, Handout #12, Title: “Ch 1.2 Notes”
DECISION
TRADEOFFS/
ALTERNATIVES
MOST DESIRABLE
ALTERNATIVE/
OPPORTUNITY COST
Economics
Monday, September 24, 2012
Ch 1.2: How does opportunity cost affect our choices?
On Looseleaf paper, Handout #12, Title: “Ch 1.2 Notes”
DUE END OF CLASS
1. Read Ch 1.2 (p 8-12) and complete your Concept Web
(p8) or Cornell Notes. You should add ovals.
2. Section ?s P. 12 1-8
3. Notes on Key Terms Ch 1.2
Economics Bell Ringer
Tuesday, September 25, 2012
What is Economics?
Ch 1.2: How does opportunity cost affect our choices?
BELL RINGER:
a) Think of a decision you recently made (or we
discussed yesterday). Explain how needs, wants,
scarcity and tradeoffs are related to this decision.
Today’s Handouts:
#13 – 9/25 – PPT Notes Ch 1.2
#14 – 9/25 – Ch 1.2 Reading Review
Economics Bell Ringer
Wednesday, September 26, 2012
BELL RINGER:
a) CLEAR DESKS FOR ECONOMICS ASSESSMENT
b)When done with assessment, quietly organize
binders, finish work due today
Economics Bell Ringer
Thursday, September 27, 2012
BELL RINGER:
a) Which decision would you make? Remember
thinking at the margin as you explain your reason.
Decision
Benefit
Opportunity Cost
Spend $0 on food, $5 on Get 3 Gatorades, not
drinks
thirsty
Very hungry
Spend $2.50 on food,
$2.50 on drinks
Get 1 Gatorade, chips
and fruit, not thirsty
Still pretty hungry
Spend $3.50 on food,
$1.50 on drink
Get 1 Gatorade, chips,
Still a bit thirsty
small sandwich, pretty full
Spend $5 on food, $0 on Get $5 sandwich, very
drink
full
You are very thirsty
Today’s Handouts:
#15 – 9/27 – Decision Making Wksht
Economics
Thursday, October 4, 2012
KITCHEN CHALLENGE:
a) You will weigh alternatives to determine most
efficient use of scarce resources
b) Groups decide how to use their physical and
human capital and how the labor will be
accomplished given the size of their group and the
time limits
c) You must design a menu with the limited
number of people in your group and time
allowed
d) Work through Day 1 Questions (finish for HW); we
finish Day 2 tomorrow
Economics
Thursday, September 27, 2012
1.
Identify the Key Term
a)
The principle that limited amounts of goods and
services are available to meet unlimited needs and
wants
Scarcity
b)
The resources that are used to make goods and
services (and what are the different types?)
c)
The study of how people seek to satisfy their needs
and wants by making choices
Economics
d)
e)
f)
g)
Factors of production:
Land, Labor, Physical
Capital, Human Capital
1. Economics
The process of deciding how much more or less to do
2. Tradeoffs
for the extra/next unit of production
3. Utility
Thinking at the margin
The most desirable alternative given up as a result of
4. Opportunity Cost
Opportunity Cost
a decision
5. Marginal Benefit
the alternatives that we give up when we choose one
6. Scarcity
course of action over another
7. Marginal Cost
Tradeoffs
the total satisfaction gained from getting needs and 8. Factors of Production
9. Needs/Wants
Utility
wants
Economics Bell Ringer
Friday, September 28, 2012
What is Economics?
Ch 1.2: How does opportunity cost affect our choices?
BELL RINGER:
a) Complete the self-reflection, update Table of Contents
and turn-in Bell Ringers
b) Clear your desk of everything for Quiz #1
Today’s Handouts:
#17 – 9/28 – Quiz #1
#18 – 9/28 – Opportunity Cost: GMO
Economics Bell Ringer
Monday, October 1, 2012
What is Economics?
Ch 1.3: How does a business decide what and how much to produce?
BELL RINGER:
a) Imagine you and two friends are planning the
Homecoming dance. Plan who will do what to
prepare for the dance.
b)Get out your book. Label a looseleaf #19 and title
“Notes Ch1.3”
Today’s Handouts:
#18 – 10/1 – Bell Ringer (10/1-10/5)
#19 – 10/1 – Ch 1.3 Notes and ?s
Economics
Monday, October 1, 2012
Ch 1.3: How does a business decide what and how much to produce?
Label Looseleaf paper #19 and title, “Ch1.3 Notes”. Use for all
of today and tonight’s work.
CASE STUDY: CAR INDUSTRY OUTSOURCING TO ASIA
Read case study on P16 and answer these questions:
• Why are the auto-makers moving high-skilled jobs
into low-cost countries?
• How might production and quality control be
compromised if Nissan designs cars in Vietnam?
Economics
Monday, October 1, 2012
Ch 1.3: How does a business decide what and how much to produce?
Label Looseleaf paper #18 and title, “Ch1.3 Notes”. Use for all
of today and tonight’s work.
BOOK WORK (DUE THURSDAY BEG. OF CLASS)
Read Ch 1.3 (p 13-18)
• Review Key Terms (Notes and Flash Cards)
• Answer CHECKPOINT Questions
• P.14 Graph Skills #1, 2
• P.18 #2-10
Economics Bell Ringer
Tuesday, October 2, 2012
What is Economics?
Ch 1.3: How does a business decide what and how much to produce?
BELL RINGER:
1. Think about yesterday’s case study about Nissan
moving production to Viet Nam
a) What were the scarce factors of production?
b) What was the marginal benefit of moving production?
c) What was the opportunity cost of moving production?
d) Use cost/benefit analysis to explain how Nissan made
their decision
Today’s Handouts:
#20 – 10/2 – PPT Notes Ch 1.3
#15: Decision Making Handout
Remember, if Marginal Benefit > Marginal Cost,
we should expand # of stores
(Current: Sales $25.3mm, Profit 10%)
Stores
Expected Sales per Store,
Year 3
Expected Profits per Store,
Year 3
20
$25.5mm
(>$25.3mm)
9.3%
(<10%)
30
$26.9mm
(>$25.3mm)
10.7%
(>10%)
40
$25.9mm
(>$25.3mm)
10.2%
(>10%)
50
$24.7mm
(<$25.3mm)
8.5%
(<10%)
Economics Tuesday, October 2, 2012
#16 Opportunity Cost and GMO Food
Decision to Buy GMO Food
Before 2008
DECISION: DON’T BUY
After 2008
DECISION: BUY
Benefit
Cost
???
-Not healthy/banned
-Frankenfoods
Benefit
<
Cost
- GM food lower than -Not healthy/banned
rising corn prices (bcs - Frankenfoods
oil prices rising)
Benefit
>
Cost
Economics Bell Ringer
Thursday, October 4, 2012
BELL RINGER: Use the following Production Possibilities Curve
a) What are the two alternatives that we may produce?
b) What is the current opportunity cost of increasing t-shirt production from
0mm to 40mm t-shirts?
c) Where are we producing efficiently?
d) How do we get from the red to the blue curve? What do we call that?
Economics
Thursday, October 4, 2012
To receive text reminders from Mr. Vasu
for
Economics:
Text the message @vasuecon to
(720)-924-4156.
Standard messaging rates apply.
Economics Bell Ringer
Friday, October 5, 2012
1.
Identify the Key Term
a)
the use of resources in such a way as to maximize the
Efficiency (on PPF)
output of goods and services
b)
a line on a production possibilities curve that shows
the maximum possible output an economy can
Production Possibilities Frontier
produce
c)
the extra cost of adding a unit
Marginal Cost
d)
e)
f)
1. Prod. Possibilities Curve
The most desirable alternative given up as a result2.ofProd. Possibilities Frontier
3. Opportunity Cost
a decision
Opportunity Cost
4. Marginal Benefit
the use of fewer resources than an economy is
5. Efficiency
capable of using Underutilization (inside/under PPF)
6. Marginal Cost
The process of deciding how much more or less
7. Underutilization
to do for the extra/next unit of production
8. Needs/Wants
Thinking on the Margin
9. Thinking on the Margin
Economics Bell Ringer
Friday, October 5, 2012
1. Describe a good or service you consumed recently
a) What was the opportunity cost?
b) What factors of production were used to make the
good or service?
• Be specific what factor of production it is
Today’s Handouts:
#21 – 10/5 – Kitchen Challenge
Economics Bell Ringer
Monday, October 8, 2012
1.
Make a production possibilities frontier on this production
possibilities curve. Label your axes.
2.
What is the opportunity cost of producing more than 70mm iPads?
3.
What would be a point of underutilization?
4.
What might cause you to be to the right of your PPF?
iPads
(millions)
iPhones
(millions)
0
100
25
80
50
55
70
25
100
0
0
Today’s Handouts:
#22 – 10/8 – Bell Ringer (10/8-10/12)
Economics Bell Ringer
Tuesday, October 9, 2012
1.
Make a PPF on a PPC. Label your axes.
2.
How can we produce 14 Cars and 5 Trucks per worker?
3.
What happens to opportunity cost as you increase production of
cars per worker. Be specific.
What does the PPC show? How is this related to thinking at the
margin?
4.
Cars per Worker
Trucks per
Worker
0
10
5
9
9
7
12
4
14
0
0
BRING YOUR BOOKS TO CLASS TOMORROW!!!
Economics Bell Ringer
Wednesday, October 10, 2012
Use at least 4 key terms in your answers:
scarcity, needs/wants, goods/services, efficiency,
cost/benefit analysis, thinking at the margin
1. Why does every decision involve tradeoffs and
opportunity cost?
2. How does a PPC show opportunity cost?
Economics
Wednesday, October 10, 2012
1. Finish the Kitchen Challenge. It is due on Thursday
2. Review for the Ch1 Test (Thursday in class)
•
You are allowed one side of 3x5 index card I
give you as aid for the test
•
Resources:
•
Handouts #8, 9, 12, 13, 19, 20
•
P.19 Key Terms
•
P. 20 #1-9
Economics
Friday, October 5, 2012
KITCHEN CHALLENGE: RESULTS
Group
Total Money Raised
Total Time Taken
Economics
Monday, October 15, 2012
•
Think of a business idea and answer the following
three questions. Explain your reasoning. Use
Tuesday’s BR space if you need more room.
1. What goods/services are you going to produce?
2. How are you going to produce these
goods/services? (specific factors of production)
3. Who is going to consume the goods and
services?
Today’s Handouts:
#24 – 10/15 – Bell Ringer (10/15-10/19)
#25 – 10/15 – Ch2.1 Book Work
Economics
Tuesday, October 16, 2012
•
One of everyone’s basic needs is for food. To
satisfy this need, how should the 3 economic
questions be answered?
1. What goods/services should be produced?
2. How should these goods/services be produced?
3. Who is going to consume the goods and
services?
Today’s Handouts:
#26 – 10/16 – PPT Notes Ch 2.1
Economics Bell Ringer
Thursday, October 18, 2012
•
What are the three key economic questions?
•
List the five economic goals
•
Describe two of the goals
Economics
Thursday, October 18, 2012
•
Any questions on p28?
•
Finish Book Work
•
Review Key Terms to study for Quiz
•
Organize Binder to be checked tomorrow
Economics Bell Ringer
Monday, October 29, 2012
1. What are the three key economic questions?
2. What are the five economic goals?
Today’s Handouts:
#28 – 10/22 – Bell Ringer (10/29-11/03)
#29 – Ch 2 Notes
Economics Classwork
Monday, October 29, 2012
1. Take out a sheet of a paper and number it #29 with
the title, Chapter 2 Notes: Economic Systems
2. Quickwrite your thoughts for Why do markets
exist?
3. Tear another sheet of paper into 8 equal pieces.
Think of a need/want. Identify a business idea.
Write down a good/service your business provides
on each of the pieces
Economics Classwork
Monday, October 29, 2012
1. Create markets to exchange for your other
needs/wants. The market is only open for 10
minutes.
2. Why do markets exist?
Economics Classwork
Monday, October 29, 2012
1. We need markets because most people are not selfsufficient
• We are households/consumers
• Firms/producers are organizations that produce
goods/services
• Households need to trade/exchange for goods/services to
satisfy our needs/wants
• This is the product market
• We also need to work and sell our scarce resources to get
money to buy goods/services. This income is a factor
payment
• This is the factor market
2. This is the circular flow of income and output
Economics Classwork
Monday, October 29, 2012
This week’s book work (#29 Ch 2 Notes)
• Key Terms
• Checkpoint Questions
• Read Ch 2.2 p 29-34
• P 35-36
• P 39-40
• P.34 #2-5, 10
• DUE FRIDAY
Economics Bell Ringer
Tuesday, October 30, 2012
1. Why do markets exist?
2. What do these words mean:
1. Households/consumers
2. Product market
3. Factor market
4. Firms/producers
Today’s Handouts:
#30 – 10/30 – PPT Notes Ch 2.2
Economics Bell Ringer
Wednesday, October 31, 2012
1. Why do households/entrepreneurs specialize?
How can specialization benefit both buyers and
sellers in a free market economy?
2. Explain what you remember about the Circular
Flow of Income and Output?
Today’s Handouts:
#31 – 10/31 – Activity of Firms
Economics Exit Ticket
Wednesday, October 31, 2012
1. How do incentives influence the decisions we make?
Provides reward or punishment; motivation to do certain things
2. How are incentives and self-interest related to the
free market?
Self-interest provides the incentive for households to look for
lowest prices and firms to look for highest prices, so they get the
highest profits.
3. How are free market economic systems selfregulated?
Self-interest means no one will pay more than they are willing.
Competition means firms cannot charge unfairly high prices,
earning unfair profits, since others will enter the business.
Economics Bell Ringer
Thursday, November 1, 2012
•
How does the government help provide for
economic equity?
•
How does the government pay for its programs?
Today’s Handouts:
#33 –11/01 – Quiz Ch 2.2
#29 – Ch 2 Notes (continued)
Economic Systems and the 5 Goals
•
Free Market Economy
• No government; markets control all (Hong Kong, Dubai,
markets for illegal goods)
• Private property – households own factors of production
• Values: Growth, Efficiency, Freedom, Security
• Doesn’t Value: Equity
#29 – Ch 2 Notes (continued)
Economic Systems and the 5 Goals
•
We need government to provide for equity
•
Centrally Planned Economy
• Only government answers all 3 economic questions
• No individual choice: opposite of Free Market (China
1950s, Cuba, North Korea)
• Values: Equity, Security
• Doesn’t Value: Freedom, Efficiency, Growth
#29 – Ch 2 Notes (continued)
Economic Systems and the 5 Goals
•
Mixed Economy
• Individuals mostly answer the 3 economic questions;
Markets very important
• Some government to provide safety nets and other
services (US, Europe, India, MOST OF THE WORLD)
• Values vary from country to country
• US is more free mkt: efficiency, freedom, growth
• India is more centrally planned: equity, growth
Economics Bell Ringer
Friday, November 2, 2012
•
•
List the 5 economic values or goals
Choose one economic system and explain how they
value or don’t value the 5 goals:
1. Free Market Economic System
2. Centrally Planned Economic System
Today’s Handouts:
#34 –11/02 – Econ Systems and Goals Chart
#34: Economic Systems and the 5 Goals
Economic System Free Market
Economy
Mixed Economy
Centrally Planned
Who Answers
3 ?s
Individuals
Individuals and
Government
Government
Role of
Government
None
Small to Large
Controls ALL the
Economy
Goals Valued
Freedom
Efficiency
Growth
Security
All 5
Equity
Security
Goals Not Valued
Equity
Examples
Hong Kong
Different in Difft
countries
Freedom
Efficiency, Growth
US, Germany,
India, Brazil
North Korea,
Cuba
#34: Economic Systems and the 5 Goals
• The degree of government intervention in the marketplace varies
among nations.
– Choose two nations on this continuum.
– Based on the diagram, write one sentence for each nation
describing how its economic system differs from that of the
United States
– Why is China a little bit farther to the right on the diagram than
Cuba?
What might cause an increased demand for food stamps?
-Teens dropping out
-Price food rises
-Increased population rates
-Lower incomes
-Unemployed/Lack of Jobs
-Easier accessibility
What might cause an increased demand for food stamps?
-Supply and Demand of food
-Losing your job/Increased unemployment
-Upcoming recession
-Bigger families/households (more mouths to feed)/less birth control
-Greater obesity
-Inflation (prices rise)
-Other costs rise (rents, etc.)
• What is the opportunity
cost of producing 5mm
iPhones
• How could Apple get to
the pink PPF? What do we
call this in economics?
30
25
iPods (millions)
• Where is Apple producing
efficiently? Give an
example of a point of
underutilization of
resources
Apple Production Possibilities Frontier
20
15
10
5
0
0
5
10
15
20
iPhones (millions)
25
1.
Why aren’t all workers paid the same amount in factor payments
for the resources they provide
2.
What types of investment on the part of manufacturers result in
growth?
3.
How does this improve a nation’s standard of living?
• What is at least one thing you learned during yesterday’s
simulation?
• What was the biggest problem in the economic system we had
during yesterday’s simulation?
• Quietly finish your reflection questions from yesterday if not
completed
• List three examples of ways the US or Illinois government
provides or regulates how goods and services are provided?
• List the 5 economic values or goals
•
Choose one and explain how they value or devalue the 5 goals:
• Free Market Economic System
• Centrally Planned Economic System
• Sweden has a mixed economy that blends a free
market with socialism. Swedes pay twice the amount
of taxes as Americans. As a result, Swedes pay very
little for medical care and everyone gets at least 30
days vacation every year.
• Compare and contrast the US and Swedish economic
systems. Which is more beneficial for workers? (Use Key
Terms and think of 3 Questions and Economic Goals)
• Log on to computers and EdModo and download
today’s assignment (HANDOUT #30)
• The degree of government intervention in the marketplace varies
among nations.
– Choose two nations on this continuum. Based on the diagram,
write one sentence for each nation describing how its economic
system differs from that of the United States
– Why is China a little bit farther to the right on the diagram than
Cuba?
1.
How do Households and Firms interact in the Factor Market? In
the Product Market?
2.
Suppose you are the owner of a beauty salon. Give two specific
ways your business might interact with households?
3.
How might the introduction of government into the Circular Flow
model affect your business?
• Clear your desk of all materials except for scratch paper and
pen/pencil
• Quietly wait for instructions from Mr. Vasu
• Reflect on how you prepared for yesterday’s test:
•
•
Write one thing you did that prepared you well for the test
Write two things you should do to be better prepared for future Econ
tests
• Put your post-it notes on the Economic System Continuum
• Go get your textbook from your locker if you don’t have it
• Complete the Warm-Up in your Chapter 3
Packet (handout for today)
• Write two characteristics of public goods
• Complete Bell Ringer Reflection for this week
Public School Construction
•Proposal: A new high school for half the 5,000 students
in the existing overcrowded high school
•Funding: A federal government loan, paid back by
increasing local taxes 10 percent annually for 12 years
• What are the benefits to the community?
• What are the costs to the community?
•Complete Bell Ringer Reflection for this week
1.
What am I? (Identify the key term; try not to use notes)
a)
a situation in which the free market, operating on its own, does not
Market failure
distribute resources efficiently
b)
a shared good or service for which it would be inefficient or impractical to
make consumers pay individually and to exclude those who did not pay
c)
someone who would not be willing to pay for a certain good or service but
who would get the benefits of it anyway if it were provided as a public
good
d)
Free Rider
an economic side effect of a good or service
that generates benefits or
costs to someone other than the person deciding how much to produce or
consume
e)
Public good
Externality (Positive/Negative) –
a good or service that can be used by from
any number
consumers
without
public of
and
private goods
reducing the benefits to any single consumer
Non-Rival Good
•
•
Have HW (Public Goods Handout) Ready to be Stamped
Pick 2 of these infrastructure projects and identify how they
are an example of a market failure (think why they are public
goods, may suffer from the free-rider problem or have any
positive/negative externalities and who’s going to pay for/build it
if the government doesn’t?)
•
•
•
•
More train service is needed on the south side as the CTA Red
Line ends at 95th street
Uplift needs a better field in the back with a real track
Chicago has way too many potholes and they need to be fixed!
Kids need more basketball courts and baseball fields to play on
and keep them off the streets
• If there were no “sin” taxes (prices were lower), how and why
would consumption of cigarettes or gas change?
• Would the change in consumption have any costs to society?
•
•
Give an example of a cost to society?
What do we call a benefit/cost to someone who did not produce or
consume a good?
• Write any questions related to this week’s
material (Public Goods)
• Quietly work on something from another
class or related to your college/scholarship
apps
1.
What am I? (Identify the key term; try not to use notes)
These are Chapter 1 Terms
a)
The principle that limited amounts of goods and services are available to
Scarcity
meet unlimited needs and wants
b)
The resources that are used to make goods and services (and what are the
Factors of production: Land, Labor,
different types?)
Physical Capital, Human Capital
c)
The use of resources in such a way as to maximize the output of goods and
Efficiency
services
d)
The process of deciding how much more or less to do for the extra/next unit
of production
Thinking at the margin
e)
The most desirable alternative given up as a result of a decision
Opportunity Cost
f)
A graph that shows alternative (two) ways to use an economy’s productive
resources
Production Possibilities Curve
1.
What am I? (Identify the key term; try not to use notes)
These are Chapter 2 Terms
a)
The amount of money a business receives in excess of its expenses
b)
The process of bringing new methods, products or ideas into use
c)
Profit
Innovation
Any arrangement that allows buyers and sellers to exchange things
Market
d)
An organization that uses resources to produce a product or service, which it
Firm
then sells
e)
The area of exchange in which firms purchase the factors of production
Factor Market
from households
f)
The hope of reward or fear of penalty that encourages a person to behave
in a certain way
Incentive
g)
What are the 5 main economic goals?
Growth, Efficiency, Security,
Freedom, Equity
1.
What am I? (Identify the key term; try not to use notes)
a)
The study of how people seek to satisfy their needs and wants by making
Economics
choices
b)
A person or group of people who provide the factors of production
c)
The arena of exchange in which households purchase goods and services
Product Market
from firms
d)
The struggle amongst producers for the dollars of consumers
e)
An economic system where the government makes all decisions on the three
Centrally Planned or Command
key economic questions.
Households/Consumers
Competition
Economy
f)
The process of selling businesses or services operated by the government to
individual investors, and then allowing them to compete in the marketplace
g)
What are the 3 key economic questions?
Privatization (a form of economic transition)
What are we going to produce?
How are we going to produce?
Who is going to consume?