MUCH LOVE MONDAY, JANUARY 6WELCOME TO ECONOMICS WITH MS. BROWN!FIND YOUR NAME ON THE SEATING CHART AND . . .

Please complete a Student Information Sheet and add two things to the bottom of the first page:

1. Do you have access to a computer with internet at home?

2. List five words or adjectives that describe you.

AGENDA

1. Take roll with Introductions & Special Number2. Homework assignment: Economic interview3. Handshake market activity

CLASS GOALS AND NORMS

CLASS GOALS

1. Create a safe, respectful, challenging and fun environment where everyone can learn, work and succeed

2. Think like economists3. Learn about our economy, how it

works, and our role in the economy4. Get to know our classmates (and

ourselves)

❖ Our behavior should help everyone in class achieve the class goals. For example:➢ Be present, awake and kind; participate

in activities, lessons and conversations➢ Respect the person who has the floor

■ Raise your hand if you have a question or comment--Ms. Brown determines who has the floor

■ “For the good of the group”➢ No phones. Ever.➢ Do your work to the best of your ability➢ Ask for help when you need it.

CLASS NORMS

MONDAY’S HOMEWORK + LETTER HOME

INTERVIEW REGARDING THE ECONOMY!

• You are a reporter for the AJC or New York Times and your editor (me) has asked you to write an article about how people are feeling about the state of the American economy.

• You must interview one adult about their perceptions and opinions regarding the U.S. economy.

• Your product should be a three-paragraph summary article about your interview.

• I’ve provided sample questions.• This is due next Monday, January 13; you can

turn in a paper copy at the beginning of class, or you can turn it in on Edmodo by 8:00 a.m.

HOMEWORK IS IMPORTANT . . .

NOT optional!!

HOMEWORK IS POSTED ON EDMODO!

• Download the app• Set reminders• Turn in via Edmodo or hard copy in class• I DO NOT accept homework via email!

THE HANDSHAKE MARKET

THE HANDSHAKE MARKET

1. What is a market?2. Objectives:

● Identify how prices are determined in a market● Predict the results of changes in a market● Experience the effects of price ceilings and taxes● Apply effective negotiation skills

3. Buyers:● Blue cards only--shows your max price you can pay● Pay lowest price possible● Buy as many handshakes as you can in each round

4. Sellers:● Red cards only--shows your min price you can sell● Sell for highest price possible● Sell as many handshakes as possible● Tell Ms. Brown transaction price only

RULES

1. Randomly pick only one card at a time2. You must pick a different card after each

transaction; put your old card face down on desk3. Buy and sell from different people. You can’t

buy or sell from same person more than two times in any round

4. If you want a new card without buying or selling, you must leave the marketa. To leave the market: Sit in a chair by the door for

20 seconds and then hit the “leave the market” sign by the door.

b. Because you had no transaction, write “LTM” (for “left the market”) on your scoresheet.

SCORE

• Your goal is to have the highest score at the end of all four rounds.

• Keep track of your personal score on the score sheet. We will do the math at the end of each round--only record prices during the round.● Buyer example: If your card is a 7 and you negotiate a

price of 5, then your score for that transaction is 2● Seller example: If your card is a 4 and you negotiate a

price of 5, then your score for that transaction is 1● If the transaction price is equal to the price of your

card, then your score is zero• Note: You don’t have to buy or sell for a loss. If

you can’t buy or sell, leave the market and get a new card.

ROUND 1--SELLERS REPORT TRANSACTION PRICE TO ME; EVERYONE GETS A NEW CARD!

• Unregulated market• Who will set prices?

ROUND 1: UNREGULATED “FREE ENTERPRISE” MARKET

• Who set prices?• What would equilibrium price eventually be?

TUNED-IN TUESDAY, JANUARY 7

• If you weren’t in class the first day, please complete a student information form and add two things to the bottom of page one: (1) Do you have access to a computer with internet at home? (2) List five words or adjectives that describe you.

• Warm up: Talk to your neighbor about what it will take for you to succeed in this class.

• Remember homework: ● Economic interview is due Monday, January 13 at the

beginning of class if you turn in a hard copy; by 8:00 a.m. on Edmodo!

● USA Test Prep Unit 1 #1 is due Monday, Jan. 13

HOUSEKEEPING

HOUSEKEEPING

● Every day, you must write down the learning target and any other warm-up in your notebook. Have one sheet of paper for each unit that ONLY contains the LTs.

● Bring index cards to class EVERY DAY! ● Check make-up log when you are absent.● Each unit will have an overview sheet with

standards and vocabulary.● Learning target: I can define ECONOMICS and

SCARCITY. I will explain how scarcity applies to real life.

REGULAR ASSIGNMENTS

● Weekly USA Test Prep assignments: Hand out cards

● Weekly quizzes● Current Event summaries● Notebook checks● Unit tests

SYLLABUS: RETURN SIGNATURE LINES BY FRIDAY OF THIS WEEK!

SYLLABUS HIGHLIGHTS

1. Bring respect and a good attitude every day.2. Leave food and drinks (except water) away.3. Required Materials: Chromebook or personal

computer, paper, pen, pencil, 3x5 index cards, and three ring binder (at least 1.5 inches) with dividers.

4. There will be weekly online homework throughout this class, therefore you must have access to a computer and the internet. You must create accounts on USA Test Prep and Edmodo. Checking out a Chromebook from DHHS is strongly encouraged.

SYLLABUS HIGHLIGHTS

5. Late Assignments: Students have up to 2 school days to submit late assignments. 25 points will be deducted each day the assignment is late; after two days no credit will be given and the work cannot be made up. A Missing Assignment Form must be completed, stapled to the completed work, and placed in the submission box. The form will allow students to explain why the assignment is late. Students who receive extended time for IEPs and 504s can note this on the form.

SYLLABUS HIGHLIGHTS

6. Because cellphones and tablets are a major distraction in class, they will not be allowed for any reason unless it is part of a lesson. ALL cellphones should be stored at the front of the room. Students who have their phone out during class will be sent to the discipline office to turn in their phone.

SYLLABUS: RETURN SIGNATURE LINES BY FRIDAY OF THIS WEEK!

ROUND 2--SELLERS STILL REPORT TO ME; EVERYONE STILL GETS A NEW CARD!!

• Price ceiling: Government sets a maximum price of $3

• Who is this helping?• On your paper: predict what will happen

to price and quantity in round 2.

ROUND 2: GOVT SETS PRICE CEILING

• Price ceiling: Govt sets maximum price of $3• Who did this help?• How many times did sellers leave the market?• Were buyers better off? • What happened to price and quantity?

ROUND 3--SELLERS STILL REPORT TO ME; EVERYONE STILL GETS A NEW CARD!!

• No more price ceiling! Back to unregulated market like round 1.

• However, there is a substitute for handshakes that is now available: high fives from Ms. Brown! The price of my high fives has just dropped from $10 to $3.● Therefore, two separate markets in the room!!

• On your paper: predict what will happen to price and quantity of handshakes in round 3.

ROUND 3: PRICE OF SUBSTITUTE DECREASED

• Talk to your partner: what happened in the market for handshakes this time?

• What happened to the price of handshakes compared to round 1?

• What happened to the quantity of handshakes compared to round 1?

• Who caused that change?

ROUND 4--SELLERS STILL REPORT TO ME; EVERYONE STILL GETS A NEW CARD!

• No more cheap high fives (that market is closed). Back to unregulated market like round 1.

• Instead, the government will place a per unit excise tax of $3 on all handshakes (to be paid by sellers).● Therefore, if a seller draws a 2 card, they must sell

the handshake for $5 because of the tax• You can still leave the market.• On your paper: predict what will happen to

price and quantity in round 4.

ROUND 4: GOVT IMPOSES $3 TAX ON HANDSHAKES

• Talk to your partner: what happened in the market for handshakes this time?

• What happened to the price of handshakes compared to round 1?

• What happened to the quantity of handshakes compared to round 1?

• Who caused that change?

WHO HAD THE MOST POINTS?And who wants to buy candy?

UNIT 1 OVERVIEW

ECONOMICS IS FUN!

HOW MUCH FUN WILL YOU HAVE IN ECONOMICS WITH MS. BROWN?

So much fun you might drool . . .

or vomit . . .

WHAT IS ECONOMICS?

DEFINITION OF ECONOMICS

• The study of how people – individually and in groups (businesses, governments, societies, etc.) – decide to use their limited (scarce) resources to satisfy their unlimited wants.

DEFINITION OF ECONOMICS

• The study of how people – individually and in groups (businesses, governments, societies, etc.) – decide to use their limited (scarce) resources to satisfy their unlimited wants and needs.

• Think, pair, share: In your life, in what ways . . . ● are your resources limited?● are your wants and needs unlimited?● do you have to make decisions that involve a trade off

(giving up something you wanted for something else)?

WISHFUL WEDNESDAY JANUARY 8

• Warm up: Talk to your neighbor about whether you want an economy based on equity (where everyone gets the same share of what is produced) or freedom (everyone has the ability to make decisions on their own and make as much money as they can).

• Learning target: I can define SCARCITY and explain how scarcity applies to real life. I can define the four factors of production. I can describe eight ways to allocate scarce resources.

• Remember homework: ● Economic interview is due Monday, January 13 at the

beginning of class if you turn in a hard copy; by 8:00 a.m. on Edmodo!

● USA Test Prep Unit 1 #1 is due Monday, January 13

YOUR QUESTIONS . . .

Will this be a fun class?

WHAT DOES IT MEAN THAT SOMETHING IS SCARCE?

• Scarcity = a basic condition which exists when unlimited wants exceed limited productive resources.

• For a resource to be scarce, it must be both desirable and limited

SCARCITY ≠ SHORTAGE

A shortage is a temporary lack of a good or service.

WHAT IS SCARCE?

1. Salt water2. Diamonds3. Garbage4. Hepatitis5. Fresh air6. Wood

WHAT ARE RESOURCES?

WHAT MAKES UP THE FOUNDATION OF ALL LIFE?

• The CELL!!

WHAT IS REQUIRED FOR ALL BUSINESSES?

• CELL!!!

• FACTORS OF PRODUCTION (aka PRODUCTIVE RESOURCES):● CAPITAL● ENTREPRENEURSHIP● LAND ● LABOR

CAPITAL (AKA CAPITAL GOODS OR CAPITAL STOCK)

• TOOLS, MACHINES, and BUILDINGS USED TO MAKE A GOOD OR SERVICE

• Ex: roads, factories, cars, pencils, computers, etc.

ENTREPRENEUR

• A PERSON WHO ASSEMBLES AND ORGANIZES THE RESOURCES NEEDED TO PRODUCE A GOOD OR SERVICE

• Is this risky?• Why do it then? Profit, job creation, innovation,

and improving society

HIGH RISK HIGH REWARD

LAND/NATURAL RESOURCES

• ANYTHING MOTHER NATURE GIVES US

• Ex: air, soil, minerals, water, forests, plants, animals, etc.

LABOR/HUMAN RESOURCES

• THE TIME AND EFFORT PEOPLE USE TO MAKE A GOOD OR SERVICE● Includes physical labor & mental activity—from

brain surgery to crossing guard

• Human capital → knowledge and skills that people (LABOR) gain from education and training

Where are the factors of production?

ECONOMIC PROBLEM: WE HAVE UNLIMITED WANTS AND NEEDS BUT LIMITED RESOURCES. WHAT SHOULD SOCIETY DO ABOUT DISTRIBUTING RESOURCES?

Allocation Strategies

What does it mean to allocate?

What are two ways we have allocated things so far in class?

InstructionsWho Gets the Kit Kat?

1. There are four people in a group.2. Write the name of each of your group

members in the space beside the word “alternatives.” What does alternatives mean?

3. Leave “criteria” blank. We will do this together . . .

Majority Rule

1. Write majority rule in the first blank under criteria.

2. Give each person 10 seconds to tell the group why you should get the Kit Kat bar.

3. Vote for each person.4. Give the person with the most votes a (+) and

give everyone else a (-) sign.

Random Selection1. Write random selection in the second blank

under criteria.2. Ask group members to write their names on

slips of paper. Fold up the slips.3. The teacher will pick a slip for each group.4. Give the person whose name was picked a (+)

and give everyone else a (-) sign.

Authority

1. Write authority in the third blank under criteria.

2. The person’s name chosen for random selection (lottery) is now the king or queen.

3. The king or queen commands that one person in the group (other than him- or herself) should get a (+) sign. Everyone else gets a (-) sign.

Competition

1. Write competition in the fourth blank under criteria.

2. Play best out of three in a game of rock-paper-scissors with a partner in your group.

3. The winning partner will play the other winning partner.

4. The final winner should get a (+) sign. Everyone else gets a (-) sign.

1. Count up the total (+) signs for each person. 2. The person with the most (+) signs gets the

Twix.

Who Gets the Kit Kat?

THE LESSONS FROM THE KIT KAT ACTIVITY:

• Scarcity exists.● Scarcity forces choices.

• Value is connected to scarcity.● The more scarce something is, the more valuable it is.● Diamonds vs. water; candy in the classroom vs. at

store

• Who allocates scarce resources in our country?• No one method of resource allocation can make

everyone happy.

Think

Respond1. Which allocation strategy do you think is most efficient? Why?2. Which allocation strategy do you think is most fair? Why?3. What do you think is more important, economic efficiency or economic

equity (fairness)? Why?4. How satisfied were you with the methods used to allocate the candy bar?

Explain.5. What benefits and/or costs do you foresee if our government allocated

public goods and services in the same way?6. Look at the full list of allocation strategies. For each of the strategies, identify

one thing in the United States that we allocate using that strategy.7. Look at the full list of social economic goals. Which two goals do you think

are valued most highly in the United States? Give evidence to support your assertion.

THREADBARE THURSDAY, JANUARY 9• Warm up: In your notes, write down from your memory

the four factors of production and give examples of each that would be needed to start ONE of the following businesses: a shoe manufacturer, hair salon, baseball team, recording studio, restaurant, nail salon, t-shirt printer.

• Remember, write the learning target in your notes every day!

• Learning targets: I can define trade offs and opportunity costs. I can apply economic reasoning to a real-world scenario.

• Remember homework: ● Economic interview is due Monday, January 13 at the beginning

of class if you turn in a hard copy; by 8:00 a.m. on Edmodo!● USA Test Prep Unit 1 #1 is due Monday, January 13● Signed syllabus due Friday!

IDENTIFY THE FOP . . .

8 STRATEGIES FOR ALLOCATING SCARCE RESOURCES.

Allocation = to divide something up and distribute or pass it out to people

1. SUPPLY & DEMAND

● Method: Prices & Auctions● Most goods and services are

allocated this way● What are pros & cons of this

method as well as real-life examples?

2. AUTHORITY (OR FORCE)

• Methods: - Authoritarian government- War-time or emergency

rationing in a democracy - Divide evenly (ideally)• What are pros & cons of this method

as well as real-life examples?

3. RANDOM SELECTION

• Method: Lottery or similar

• What are pros & cons of this method as well as real-life examples?

4. FIRST COME, FIRST SERVED

• Method: Get in line!

• What are pros & cons of this method as well as real-life examples?

5. PERSONAL CHARACTERISTIC

• Method:● Need (prove you need it vs. someone else)● Merit (earn it)

• What are pros & cons of this method as well as real-life examples?● Cons: can result in discrimination or nepotism

6. CONTEST/COMPETITION

• Method: Based not on luck, but on ability or skill

• What are pros & cons of this method as well as real-life examples?

7. MAJORITY RULE

• Method: The vote of a majority of a group determines who gets the resource

• What are pros & cons of this method as well as real-life examples?

8. SHARING

• No individual owns it; everyone can use it (like public parks, public roads)

• What are pros & cons of this method as well as real-life examples?

By Rhododendrites - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=61817680

ECONOMICS BASICS

Factors of production (aka productive resources) are needed to produce all goods and services.

Goods Services

GOODS OR SERVICES?

GOODS OR SERVICES?

QUICK REVIEW

● Match the following images with these vocab terms: goods, services, scarcity, shortage

TRADE OFFS● Trade-offs are all the things we give up when we choose

one thing among several options.● We have trade-offs EVERY DAY when we make choices ● You have UNLIMITED tradeoffs in your life.

The O.C.: There’s only 1!● The second-best or next-best alternative is called your

opportunity cost.• Opportunity cost is your second choice.

• Economists say it is important to take your O.C. into consideration when you make a decision.

WHAT IS YOUR SATURDAY OPPORTUNITY COST?

1. For the hours of 8:00 to 10:00 a.m. on a typical Saturday, list five things that you might do.

2. Next, rank your five things from your first choice to last.

3. Choices 2-5 are what you trade off when you pick your first option.

4. Choice #2 is the opportunity cost of picking your first option.

OPPORTUNITY COST OF GOING TO COLLEGE?

ATHLETES’ OPPORTUNITY COSTS?

I CAN SOLVE AN ECONOMIC MYSTERY USING ECONOMIC REASONING.

WHY ARE SOME GROWN MEN AND WOMEN PAID SALARIES TOTALING MILLIONS OF DOLLARS TO PLAY GAMES?

HANDY DANDY GUIDE TO ECONOMIC REASONING

1. People choose. 2. People’s choices involve costs. 3. People respond to incentives (motivations) in

predictable ways. 4. People create economic systems (rules) that

influence individual choices and incentives. 5. People gain when they trade voluntarily. 6. People’s choices have consequences (results) that

lie in the future.

YOUR JOB: TO SOLVE THE MYSTERY

1. Using the clue cards AND the guide to economic reasoning, propose an answer to the mystery.

2. Make a pyramid with your clues, with the most important at the top and the irrelevant ones at the bottom; somewhat helpful ones go in the middle. a. ALL facts are true--your job is to decide which are

relevant to solving the mystery.b. Numbers on the cards are irrelevant.

3. Also determine what economic principles are important.

• Warm up: Get out your pink Unit 1 overview sheet. Underline the standards that relate to the topics we have covered so far. On the back of the sheet, put a star by the vocabulary terms we have used.

• Remember, write the learning targets in your notes every day!!

• Learning targets: I can define marginal cost and marginal benefit. I can use marginal analysis to make a rational economic decision.

• Economic interview and first USA Test Prep are due on Monday!

• Housekeeping: Make-up log

FEEL-GOOD FRIDAY, JANUARY 10

WHAT IS THE OPPORTUNITY COST?1. Tania had a hard time deciding between a summer job

and traveling to see her family. She chose to see her family because that would be more fun.

2. Josh went to CarMax and looked at Fords, Chevys, Toyotas and Mazdas. He narrowed his choices down to a Ford and a Mazda; he chose the Mazda because it had a better safety record.

3. Laiba had extra time between classes at college so she considered joining the international club or getting a part-time job in the college’s library. She took the job.

4. The city was building a new park. There was only enough money to have new tennis courts, a wading pool, a music stage or a parking lot. At a public hearing, many citizens said they wanted more parking. City council voted for the music stage after narrowing the choice to the stage or the pool.

WHAT GOOD OR SERVICE? WHAT ALLOCATION METHOD? WHAT FACTORS OF PRODUCTION? WHAT IS OPPORTUNITY COST OF LADY WITH DOT OVER HEAD?

A REFRESHER ON OPPORTUNITY COSTS . . .

MARGINAL ANALYSIS ORHOW TO MAKE A DECISION LIKE AN ECONOMIST

Marginal Analysis

100

Marginal Analysis

Marginal = additional

• MARGINAL ANALYSIS: comparing the marginal benefit vs. the marginal cost of a decision or action.

• Rational economic decision: when the marginal benefits are greater than or equal to the marginal costs.

Would you see the movie three times?Notice that the total benefit is more than the total cost after you watch the movie the 2nd time, but you would NOT watch the movie the 3rd time because the cost outweighs the benefit.

Marginal Analysis OR “Thinking at the Margin”—with a Partner

# Times Watching Movie

Benefit Cost

1st $30 $102nd $15 $103rd $5 $10

Total $50 $30

PERSONAL MARGINAL ANALYSISGiven the following assumptions, make a rational choice in your own self-interest (based only on the facts below)…1. You want to visit your friend for a week

2. You work every weekday earning $100 per day

3. You have three flights to choose from:

• Thursday Night Flight = $275• Friday Early Morning Flight = $300• Friday Night Flight = $325

Which flight should you choose? Why?

YOUR PIZZA SHOP . . .

ChangeN/A$54$33

$15

$10

$5

Can you see marginal analysis in Disneyland’s pricing strategy?

HELP ON MY WEBSITE . . .

http://www.druidhillshs.dekalb.k12.ga.us/ORhttps://sbrownsocialstudies.weebly.com/

TUTORING TUESDAY AND THURSDAY AFTER SCHOOL!