Economic Decision-making in Poverty Depletes Behavioral Control ...
Economic Decision Making Part B
description
Transcript of Economic Decision Making Part B
Economic Economic Decision Making Decision Making
Part BPart BMs. RamosMs. Ramos
Alta Loma High SchoolAlta Loma High School
What do we give What do we give up when we make up when we make
a choice?a choice?
Ms. Ramos
Maximizing utility: What we Maximizing utility: What we want when we choosewant when we choose
Utility:Utility: satisfaction from satisfaction from a good, service, a good, service, or action--- also or action--- also may be that it may be that it improves your lifeimproves your life VaccinationVaccination StudyingStudying
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http://library.thinkquest.org/08aug/00436/prevention.html
http://library.ucf.edu/Administration/LibraryDevelopment/ENewsletter/Volume3/E-mailIssue08-07.aspx
http://www.istockphoto.com/stock-illustration-8048785-silhouette-couples-dresses-up-party-dress-formal.php
Which show to watch?Which show to watch?
Which college to go to?Which college to go to?http://www.myspace.com/hiphopjunkieoo http://bandbent.wordpress.com/2009/12/10/
guest-blog-mtvs-jersey-shore/
http://www.cucirca.com/2008/04/09/watch-
family-guy-online/
http://www.degreedriven.com/California-colleges/Rancho-Cucamonga/Chaffey-College-WHDDT44LXT.html
http://www.sportslogos.net/logo.php?id=2671
http://www.workforceexchange.net/Resources/Discounts/Education/tabid/1220/Default.aspx
http://gawker.com/5265355/harvard-killer-captured
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Tradeoffs: what we give up Tradeoffs: what we give up when we choosewhen we choose
BusinessBusiness Build trucks or carsBuild trucks or cars Make trucks, tradeoff: % car Make trucks, tradeoff: % car
marketmarket SocietySociety
Guns vs. butterGuns vs. butter Military or civilian goods/programsMilitary or civilian goods/programs
PersonalPersonal
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Opp Cost: The best thing we Opp Cost: The best thing we give up to get what we wantgive up to get what we want
Decision matrixDecision matrix
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SourceSource PricePrice DeliverDeliveryy
CostCost
TransactioTransaction Timen Time
Delivery Delivery TimeTime
Online Online StoreStore
49.949.955
00 5 min5 min 7 min to 7 min to dwnloadwnloadd
CataloCatalogg
42.942.955
3.003.00 10 min10 min 1 wk for 1 wk for shippinshippingg
Big Big Box Box StoreStore
35.935.955
4.00 4.00 gas gas
moneymoney
1 hr or 1 hr or moremore
nonenone
RestauranRestaurantt
CostCost TimeTime Yummy Yummy FactorFactor
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Making “How Much” decisions Making “How Much” decisions at the marginat the margin
Marginal utility:Marginal utility: extra satisfaction extra satisfaction from consumption/actionfrom consumption/action
Negative utility:Negative utility: lack of pleasure lack of pleasure from consumption/actionfrom consumption/action
Law of diminishing marginal Law of diminishing marginal utilityutility
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Ms. Ramos
http://ice-cream-franchise.trendtodays.info/2010/06/25/the-exercise-and-the-law-of-diminishing-marginal-utility/
http://www.greenwaysound.com/forsale3.htm
How can we How can we measure what we measure what we
gain and lose when gain and lose when making choices?making choices?
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Measuring tradeoffs using the Measuring tradeoffs using the production possibilities frontierproduction possibilities frontier
Ms. Ramoshttp://www.netmba.com/econ/micro/production/possibility/
Measuring Opportunity Costs Measuring Opportunity Costs using the PPFusing the PPF
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http://www.netmba.com/econ/micro/production/possibility/
Ms. Ramos
http://www.netmba.com/econ/micro/production/possibility/
What does the curve illustrate?
Increasing costs
Measuring economics Measuring economics efficiency using the PPFefficiency using the PPF
Ms. Ramoshttp://www.netmba.com/econ/micro/production/possibility/
Measuring economics Measuring economics efficiency using the PPFefficiency using the PPF
Ms. Ramoshttp://www.netmba.com/econ/micro/production/possibility/
unattainable
Attainable, but inefficient
Reflecting economic change Reflecting economic change using the PPFusing the PPF
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http://www.netmba.com/econ/micro/production/possibility/
Change in productivity
http://www.investopedia.com/university/economics/economics2.asp
Shift out means what?
Increase-growing
economy
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Remember:Remember:Shift to the right- Shift to the right- increase/growing economyincrease/growing economy
Shift to the left- Shift to the left- decrease/shrinking economydecrease/shrinking economy
Pt w/in curve= inefficiencyPt w/in curve= inefficiencyPt outside curve= Pt outside curve= unattainableunattainable
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Ms. Ramoshttp://wps.prenhall.com/bp_case_econ_8/52/13546/3467867.cw/index.html
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STUDY!!! STUDY!!! STUDY!!! STUDY!!! STUDY!!!STUDY!!!
The unit exam will have the The unit exam will have the following:following: Fill in vocabularyFill in vocabulary 10-15 objective (multiple choice 10-15 objective (multiple choice
& graphs)& graphs) 2 short answer prompts- you will 2 short answer prompts- you will
be given the two & NOT have a be given the two & NOT have a choice this examchoice this exam
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