Transcript unit 1 scarcity

DAY 1 - Scarcity
Lesson Objective Questions
Why can’t I have everything I want?
How have societies answered the three basic economic questions?
Vocabulary – Define in Notebook
Scarcity
Opportunity Cost
Command
Market
Traditional
Trade-offs
Incentives
Factors of Production
Copy slide in binder
Define vocab in binder
- Benjamin Franklin
THINK/PAIR/SHARE (Use previous slide)
• How do Benjamin Franklin’s words relate to Economics?
• Write your response in your notebook. Use examples from your
personal life to explain your answer.
• Share with your partner.
• Be prepared to share with class.
Scarcity Video (video is on next slide)
• Copy and complete in binder
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Describe your favorite part of the video.
Write down 3 Economic things you learned.
Write down 1 question you have about scarcity.
Write down 1 question you have about this awesome video.
Define Scarcity.
Scarcity: Breakfast on the Run
• Complete activity individually on your binder. WORK WITH A PARTNER
• Answer all questions in COMPLETE SENTENCES
• Use DETAILS and EVIDENCE from reading to support your answer.
The Economic Problem (copy in binder)
1. Choices must be made in all economic systems because:
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Resources (natural, human, and capital) are limited.
Human wants are unlimited.
THIS IS SCARCITY!!!!
2. Using resources one way, to satisfy some wants, means those resources
cannot be used in other ways, to satisfy other wants.
THIS IS SCARCITY!!!!
3. Every economic system must answer three basic economic questions:
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What and how much to produce?
How to produce?
For Whom to produce?
THESE ARE ANSWERED BECAUSE OF
SCARCITY!!!!
4. How the basic economic questions are answered in a country determines the
type of economic system (market economy, command economy, or mixed
economy).
Scarcity Kidney Worksheet (PARTNER ACTIVITY)
Read instructions. COMPLETE on own paper. EXPLAIN
ALL RESPONSES WITH DETAILS AND EVIDENCE
As the head of the hospital,
you need to decide which
patients receive their
needed hours and who do
not. List the patients that
are going to receive
treatment and how many
hours. Explain why you
decided to give them their
required treatment.
Remember you only have
30 hours to give out. Finally
explain why you decided
not to treat the other
patients.
CW Activity – Who Decides?
• Objectives –
• Students describe how command and market economies answer the basic
economic questions of what to produce, how to produce it, and for whom.
• Students explain the effects of using different procedures to make resource
allocation decisions in command and market economies.
• Activity is COMPLETED in BINDER
The Economic Problem (READ)
1. Choices must be made in all economic systems because:
• Resources (natural, human, and capital) are limited or scarce.
• Human wants are unlimited.
2. Using resources one way, to satisfy some wants, means those
resources cannot be used in other ways, to satisfy other wants.
3. Every economic system must answer three basic economic
questions:
• What and how much to produce?
• How to produce?
• For Whom to produce?
4. How the basic economic questions are answered in a country
determines the type of economic system (usually market, command, or
some mix).
Activity
• Read the activity that you have been give (Activity 1 or Activity 2)
• Use the characteristics of your country (A or B) to answer the
following questions about the census data (next slide)
• (COPY QUESTIONS)
• How would the production of goods and services change based on your
country?
• How will these teenagers be prepared to enter the workforce of their
country?
Census Data Report
Number of Teenagers Increases
• Demographic studies indicate that over the next five years the
number of teenagers, especially ages 15-18, will increase
dramatically.
• The greater the number of teenagers is expected to affect many
products and groups including:
• Schools, Teachers, College Enrollment
• Clothing
• Entertainment
• Transportation
• Fast Food
• Jobs
Share Out & Discussion – Answer all questions on
your own paper with your group. Be prepared to
share with class. COMPLETE IN BINDER
• How did your economy respond to the information about a growing
population of teenagers? Explain why.
• How are answers to the What, How and For Whom questions
determined in your country?
• What kind of economy is represented in Country A?
• Command Economy
• What kind of economy is represented in Country B?
• Market Economy
Visual 3
How Command and Market Economies
Answer Basic Economic Questions (create chart in binder)
Command
Central planners base production on
politically determined goods
Central planners determine the
combination of productive resources
used based on the country's goals
(e.g., using more labor and less capital
if employment is a major goal).
Wages and other incomes are set by
central planners, as are prices for goods
and services consumers can buy. Those
prices are often set below market
clearing price levels, creating shortages.
Basic Questions
What and How Much to Produce?
How to Produce?
For Whom to Produce?
Market
Consumer preferences (demand) and
producer cost and profit considerations
(supply) determine what to produce.
Individual businesses determine the mix
of natural, human, and capital resources
they will use to minimize production
costs and maximize profits.)
The value of a good or service is the price
determined by the interactions of buyers
and sellers in the marketplace. Goods and
services are purchased by buyers willing
and able to pay the market price.
Activity #3
• Each group will be given a news report.
• Work as a group to discuss resource allocation responses to the event
based on either a command or market perspective, or a combination
of both.
• All findings must be written in your binder.
• Be prepared to share with class. DO NOT SHARE which economic
approach your group selected.
• Questions to help guide discussion –
• How will your economy respond? Explain why.
News Events
• 1 Floods and mudslides blanket the coast. Hurricane-force winds
destroy homes. People are without food, shelter, and power
• 2. Health Care Crisis: Country is plagued by shortages of hospital
rooms, equipment, doctors, and nurses. Hundreds of citizens wait
months for heart surgery and cancer treatment
• 3. Mass teacher shortage nears. Fifty percent of state's teachers are
eligible for retirement in next five years.
• 4. Global warming is here. Latest federal report says temperatures
rising. Sixteen of the last 20 years exceeded the annual average since
1895. Summer expected to be hottest on record.
• 5. Last year's hard-to-find, hot new toy sits on shelves this holiday
season. This year, the Millennium Bear0 tops wish list for kids and
adults.
Review Questions – Complete in binder
• 1. What basic questions must every economy answer because of the
fundamental economic problem of scarcity?
• 2. How are the basic economic questions answered in a command
economy?
• 3. How are the basic economic questions answered in a market
economy?
Assessment Activity
• Read the scenario below and complete the task that follows. On a separate
piece of paper. TURN INTO BIN WHEN FINISHED.
• SCENARIO
• At Hometown High School the cafeteria manager and the principal determine what foods will be
sold in the cafeteria. They select foods they feel are healthy for the students. Their goal is to
provide nutritional meals using government-subsidized products. To insure that all students can
afford lunch, they sell the meals at a very low price.
• Preferences of students fall on deaf ears. The manager and principal refuse to change the menu
because students want foods they find unacceptable. Students are staging a silent protest by
bringing lunches from home, filled with the foods they like.
• Task:
• Explain how running the school cafeteria is similar to running a command economy. Rewrite the
scenario to show how the cafeteria might be run more like a private business in a market
economy. Then discuss the major advantages and disadvantages of each way of running the
cafeteria.